Landlords' use of rent-to-income ratios to screen tenants constitutes unlawful discrimination under the Human Rights Code.
Three complainants alleged that the respondent landlords discriminated against them by using minimum income criteria and rent-to-income ratios to deny them rental accommodation.
The Ontario Board of Inquiry found that the use of these criteria constitutes adverse effect discrimination on the basis of sex, marital status, family status, age, citizenship, place of origin, and receipt of public assistance.
The Board held that the landlords failed to establish that the income criteria were reasonable and bona fide, as there was no empirical evidence showing that rent-to-income ratios accurately predict a tenant's likelihood of defaulting on rent.
The Board ordered the landlords to cease using income criteria and awarded general and specific damages to the complainants.
Shelter Corp. v. Ontario (Human Rights Comm.) (No. 2), 1998 CanLII 29852