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.
This leads to Landlords making decisions regarding which tenants they want to consider extending relief to and what specific criteria will be used to make the choices. It is very important to perform DUE DILIGENCE, to understand the tenant’s current financial position, creditworthiness and long-term economic viability. The landlord or property manager may decide to look at the tenant’s current and prior years financial statements and for retail tenants their gross sales receipts. However, during the urgency of this current situation it may be difficult for the tenant to immediately certify the information they are asked to provide. In addition to what the tenant may provide, QCR reports can quickly be produced, and often without a credit application, to add to the landlord’s due diligence process and assist in making informed decisions.
Our Tenant Rent Relief Decision Report could confirm the following pieces of information for corporate or individual tenants:
- Entity’s current full legal name
- Legal corporate status – are they in good standing with Companies Branch
- Default notices from Corporate Tax Branch (Canada Revenue Agency)
- Voluntary or involuntary dissolutions
- Name changes, amalgamations and business name registrations
- Date entity was established, address, officer/director/shareholder information
- Collection claims
- Returned cheques
- Fraudulent banking notices
- Legal actions launched by or against tenant
- Judgments obtained against tenants
- Secured borrowing facilities, lines of credit and term loans with financial institutions
- Types of secured facilities, amounts and collateral description
- Secured lease facilities and chattel mortgages
- Ministry of Finance tax liens – unpaid provincial sales, retails sales and goods and services tax
- Crown Charges and Statutory Claims – Employment Standards Act, Workman’s Compensation Act, Social Services Tax Act, Employment Insurance Act and Income Tax Act
- Writs of Enforcement and Writs of Execution
- Matrimonial property orders
- Land Charges / Maintenance Orders
- Business affiliations / interests
- Commercial bankruptcies
- Debt consolidation orders
- Commercial proposals and receiverships
- Historical payments trends
- Outstanding balances reported
- Historical bank account, landlord and credit ratings
- Consumer Bankruptcies and Proposals
- Credit card, loan and lease balances
- Mortgage balances
- Late payment activity
- Fraudulent banking activity
- Fraud / Identity theft alerts
- Collections claims
- Legal actions / Judgments
Get in touch with us today for more information and samples of Rent Relief Decision Reports. We'd be happy to answer any of your questions.
Tags: Deliquent Tenants
