Ontario’s rental market is facing a reckoning as landlords, reeling from a wave of fraudulent applications, question whether real estate agents are truly holding up their end of the bargain.
When rents in Ontario soared and finding trustworthy tenants became a high-stakes game, landlords like Sanaulhaq Zarawar hoped hiring a real estate agent would offer a safety net. Instead, Zarawar found himself locked in a costly standoff with a tenant who stopped paying rent and refused to leave, the fallout of a rental application that slipped through with false credentials. The promise of peace of mind quickly faded, replaced by meetings with the landlord and tenant board and mounting arrears. For Zarawar, the assumption that an agent’s verbal promises of tenant vetting could be counted on was a costly illusion.
Across the province, small landlords are discovering that standard real estate contracts don’t guarantee background checks—even if agents say otherwise. Toronto paralegal Bita Di Lisi points out that only what is in writing counts. Verbal assurances, no matter how sincere, vanish the moment trouble arises. This disconnect between expectation and contractual reality has left landlords vulnerable to a rise in rental application fraud, a trend destabilizing the market.
According to RentPanda, fraudulent rental applications in Ontario have soared, jumping from just over two percent in 2022 to over nine percent as of May. Faked pay stubs, references that never pick up, and entire fabricated histories are slipping through the cracks. Property manager Pamela O’Hagan, overseeing hundreds of units in Brampton, has seen the scams firsthand. For some agents, the incentive to close a deal outweighs a diligent vetting process. The result? Landlords pay the price—sometimes literally, as commercial landlord Mischa Hamara did when a tenant never moved in after the agent pocketed the commission.
Long delays at the landlord and tenant board compound the problem, leaving owners stuck with non-paying tenants while bills mount. Even recourse to the Real Estate Council of Ontario offers little comfort; the most an agent might face is a fine or a mandatory course. Many landlords are now taking matters into their own hands, demanding contract changes that explicitly require tenant vetting, and conducting their own checks before signing any lease.
The landscape is shifting, and Ontario landlords are learning—often the hard way—that in a market rife with rental application fraud, trust must be earned and contracts scrutinized. Until systemic change arrives, vigilance, clear agreements, and a healthy dose of skepticism remain a landlord’s best defences.
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After major issues with tenants, these Ontario landlords blame their real estate agents
