In this blog, Quality Credit Reporting (QCR) takes a look at some of the most common questions we receive in regards to credit checks for renewal tenants and lists them for your benefit here:
When leasing commercial property to a tenant, large amounts of information are collected, used and disclosed, which makes sense. As a landlord, it is important for you to know who your tenants are so that you can enter into a relationship with the right business while also ensuring your property is protected.
From a tenant perspective, however, there is an expectation for privacy when it comes to their business and their work space.
That is where the Personal Information Protection and Electronic Documents Act, better known as PIPEDA, comes in.
You are only as strong as your weakest link. When it come to selecting a franchisee, this couldn’t be any more true. The people you have representing your brand make it what it is, which means their success is critical to your success.
But what does a successful franchisee look like?
Choosing the wrong franchisee can quickly set your franchise’s growth back many years, cause irreparable damage to the brand’s reputation, create additional costs, and affect your bottom line and overall success.
As a result, many franchisors have begun using more sophisticated approaches when it comes to selecting the right operator for their franchise.
A troublesome tenant can be a costly issue. Not only do you incur the loss associated with unpaid rent and the eviction process, but you will also have to invest more time and money in finding a new tenant, repairing damages they may have caused, as well as worry about the effect they had on other tenants and your long-term relationships with them.
Choosing the right tenant is the best way to protect your investment, but when getting to know prospective tenants, there is often hidden information that a standard screening process cannot uncover.
This makes it difficult to ensure you have selected the right leasee at the outset, and that leaves you, your business and your company vulnerable. Decreased cash flow, frequent turnover, rent concessions, lease modifications, default, evictions and costly dispute resolution are just some of the many risks that exist.
To offset these risks, it is important to consider enhanced screening methods that take a deeper look at your prospective tenants.
Why Use an Asset Accumulation Report? Is money owed to you by another party? Do you have a skipped or delinquent tenant? Are you looking into ways to collect that debt? Are you trying to enforce a judgment? Are you considering legal action? Don’t make a decision just yet.
Before proceeding, it is important to consider the benefits of an Asset Accumulation Report in your decision-making process.
The debt recovery process can be time-consuming, costly and emotionally demanding. Even if you don’t make it to court, paperwork and consultations can quickly eat up your resources. That is why, before proceeding with legal action or enforcing a judgment, you need to ask yourself if it is worth it.
To ensure you are making the soundest decision possible, there are three factors you may want to consider.
Choosing the right candidate to operate your new franchise can be difficult and time consuming, but taking the time to do it right can offer a number of benefits. This could include reduced turnover and disputes as well as improved brand image and better allocation of resources.
To assist you with your selection process, here are four steps to help ensure the best decision regarding new franchisees is made at the outset.
Investing in commercial real estate can be a profitable venture but, many times, investors acquiring property with an existing tenant base fail to fully assess the current occupants.
It is important to conduct the standard assessments inherent to purchasing a commercial rental property, such as lease terms, hidden rent reduction and operating costs. Understanding the financial details of the tenant base is often forgotten. The tenant’s ability to continue their lease into the future is critical to ensure your investment is profitable. This will allow you to properly evaluate the future income stream.
