RECOURSE FOR TENANT DELINQUENCY AND BANKRUPTCY IN COMMERCIAL LEASES

RECOURSE FOR TENANT DELINQUENCY AND BANKRUPTCY IN COMMERCIAL...

Sue McConnachie   |     Feb 05, 2021

Covid-19 is having a devasting impact on the global economy.  It raises significant implications for commercial landlords and their tenants facing the crisis.  The landlord is placed in a precarious situation during these times and is encouraged to improve their lease negotiations to protect their rights. There are several measures to help with protection, including comprehensive credit reporting, ensuring a guarantee or indemnity and requesting letters of credit and larger security deposits. These measures can assist should a tenant become delinquent or bankrupt. 

Verify Financial Stability and Character in Franchisee Candi...

Sue McConnachie   |     Jan 20, 2021

Does Your Application Process Confirm the Financial Capabilities and Character of Your Candidate?

The success of your franchise depends on a number of factors, one of the most important being the people that represent your brand. Recruiting the best franchisee for your operation is critical to the success and reputation of your organization.

4 QUESTIONS TO ASK WHEN ASSESSING LEASE RENEWALS

Sue McConnachie   |     Dec 08, 2020

What could have changed since the original lease was executed?

• The full legal corporate name due to an amendment or amalgamation.
• Corporate Provincial status.
• The jurisdiction in which a corporation is registered to do business.
• Default with Companies Branch and Corporate Tax Branch.
• Increased debt (including mortgages, lines of credit, term loans and credit cards).
• Decreased bank account balances.
• Delinquent activity (late payments, collection claims, legal actions, judgments or bankruptcy).

Locate Assets for Successful Debt Recovery

Sue McConnachie   |     Dec 02, 2020

You need the best information possible prior to launching a legal action against a debtor or attempting to enforce a judgment. The defendant’s financial worth will significantly impact the likelihood of recovery.

Obtain the accurate picture of the defendant’s circumstances so that you will know if the legal costs incurred are going to be justified by successful collection. Guesswork is risky for the outcome and unnecessary. Take the extra step by using Quality Credit’s Asset Accumulation Report and make an informed decision regarding next actions.

Reducing Tenant Risk During Uncertain Times: Download This P...

Sue McConnachie   |     Nov 09, 2020

Due to uncertainty relating to the duration and severity of the COVID-19 pandemic, it is not
possible to estimate the future impact of the pandemic. During these unprecedented times, comes
the issue of your current or future tenants’ short term or long-term ability to meet rent obligations, leading
to important decisions you will now have to make. All property investments are subject to a degree
of risk and uncertainty. The tenant qualification strategy you use to replace vacated tenants,
deal with lease roll-overs and pre-leasing development space can significantly reduce tenant
risk.

INCREASED TENANT RISK DUE TO ECONOMIC INSTABILITY IN THE WAK...

Sue McConnachie   |     Sep 21, 2020

Prospective Tenants – Ensure you Have the Best Possible Risk Screening

Do you have all the information you need for negotiations with your potential tenant?

The financial implications of having a tenant default on a lease can be severe and often a simple database “snap-shot” only reveals a part of the prospective tenant’s financial story.

During these uncertain times, when it's becoming increasingly important to do a thorough background check on tenants, our team at Quality Credit Reporting provides the tools you need to protect your business and make informed decisions about prospective tenants.

Best Practices for Selecting Secure Franchisees During an Un...

Sue McConnachie   |     Sep 11, 2020

Selecting the right candidates to represent your brand is critical to your operation’s ongoing success. These franchisees will be the face of your company and you need to trust that they will maintain your brand image.

Due Diligence for Skipped, Delinquent and Renewal Tenants Du...

Sue McConnachie   |     May 05, 2020

SKIPPED AND DELINQUENT TENANTS

During these un-precedented times with COVID-19, the numbers of Skipped and Delinquent Tenants is on the rise. Being a property manager brings with it the potential for serious risk, liability and consequences at a time when the scales of justice seem tipped in favour of delinquent tenants. Once a tenant has gone delinquent, property managers must decide whether to proceed with legal action, and after all, if there is minimal probability of recovering the debt, why incur the costs of legal action?

Due Diligence for Handling Rent Relief Requests

Sue McConnachie   |     Mar 30, 2020

During these unprecedented times, comes the issue of your tenants’ short term or long-term inability to meet rent obligations, leading to important decisions you will now have to make.  We understand that it may not be in the best interest of the landlord to close a tenant’s door and begin to find replacement tenants during a time when leasing activity is at a serious slow down.  Landlords will have to choose if it is in their best interest to consider rent relief if doing so keeps a tenant open and operating in long and short term, and how that may protect the long-term economic viability of a property.  

Understanding Consumer Insolvency vs. Bankruptcy

Sue McConnachie   |     Mar 05, 2020

According to the Office of the Superintendent of Bankruptcy; “Consumer insolvencies for the 12-month period ending December 31, 2019, increased by 9.5% compared with the 12-month period ending December 31, 2018. Consumer bankruptcies decreased by 1.2%, while consumer proposals increased by 17.9%. The proportion of proposals in consumer insolvencies increased to 60.3% during the 12-month period ending December 31, 2019, up from 56.0% during the 12-month period ending December 31, 2018. For the 12-month period ending December 31, 2019, consumer insolvency filings accounted for 97.4% of total insolvency filings.”