After major issues with tenants, these Ontario landlords blame their real estate agents

Some landlords in Ontario are calling for a change in the law, saying what is written in formal contracts with real estate agents is not consistent with their verbal promises.

Sanaul Haq Zarawar is one such landlord who says he has a tenant in his home who is not paying rent and is not willing to move out.

“I paid a real estate agent precisely to make sure I would find a good tenant and do the necessary paperwork,” he says. “Why would I pay if I was going to do it myself?”

The tenant moved into his home in Whitby, Ontario, in 2023 and stopped paying rent after a few months.

Concerned, Zarawar personally reviewed the paperwork and contacted the agents, only to realize he might have come across a fraudulent tenant; The tenant who rented a house with fake documents, fake employers, and a second person who didn’t exist.

But to his surprise, he discovered that the tenant’s background check and documents were not included in the contract with his real estate agent, even though he had made a verbal promise.

“He promised me that he would check the tenant’s background. I trusted two real estate agents, and that was my biggest mistake,” says Zravar.

Now, the tenant owes nearly $40,000 in rent and unpaid bills.

In many major Canadian cities, small landlords assume that real estate agents will find them suitable tenants, but there is no guarantee in standard contracts that these checks will be carried out, even if a verbal promise is made.

“If a landlord wants to legally require a real estate agent to review the documents and records, they should write it into the contract. A verbal promise has no legal value,” says Toronto-based lawyer Beata DeLisi.

Real estate agents and tenants declined to be interviewed by CBC.

In Ontario, landlords can file a complaint with the Real Estate Council of Ontario (RECO) if they have a problem.

RECO said it is increasing awareness and transparency about the terms of standard contracts between agents and landlords starting this year.

Complex housing market and rising rents
Despite the relative decline in rents in some markets, rents and mortgage rates remain high, and any problems with the lease contract impose a heavy cost on landlords.

Meanwhile, the Landlord and Tenant Board of Ontario (LTB) is also facing a high volume of cases and is taking months to process complaints. Only the board can issue evictions.

Meanwhile, fraudulent rental applications have also increased. According to RentPanda, 9.1% of rental applications in Ontario in 2025 contained fake information, more than quadrupling from 2.1% in 2022.

“Many landlords trust real estate agents to reduce risk, but that’s a misconception,” says Pamela O’Hagan, director of a property management company in Brampton. Real estate agents are not required to review documents and do due diligence, and landlords should read the contract carefully.”

She cited a case in which a real estate agent submitted a rental application with fake documents — including pay stubs and a fake ID.

“It was obvious it was fake. But unfortunately, some agents ignore these things to get a quick commission,” says O’Hagan.

What does a real estate agent do?
Experts say landlords shouldn't expect real estate agents to do tenant screening and evaluation duties.
“It's not the real estate agent's job to check the tenant's background, and landlords should take personal responsibility for their investment,” DeLisi emphasizes.

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