A property manager in Toronto receives an application from a prospective tenant, John, who has a credit score of 550 and a history of late payments on a previous car loan. However, John's current income is well above the landlord's income-to-rent ratio requirement. How should the property manager proceed with John's application?

Question: A property manager in Toronto receives an application from a prospective tenant, John, who has a credit score of 550 and a history of late payments on a previous car loan. However, John's current income is well above the landlord's income-to-rent ratio requirement. How should the property manager proceed with John's application?

Answer options:

• Decline the application based solely on the poor credit history, as it indicates a high risk.
• Approve the application because his current income satisfies the financial requirements.
• Request a guarantor or a larger security deposit as a condition of approval. ✅ Contact John's previous landlord to inquire about his payment history for rent.

Correct answer: Contact John's previous landlord to inquire about his payment history for rent.

Explanation: While income is important, a poor credit history warrants further due diligence. Contacting previous landlords provides direct insight into a tenant's rental payment habits and overall tenancy conduct, which is critical for a comprehensive assessment.