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?
Take legal action or not – you do not have to incur the cost of legal action without knowing the prospect of collecting or satisfying a judgment.
The QCR “Asset Accumulation Report” is designed specifically with your skipped or delinquent tenant in mind. Prior to incurring the cost of an expensive legal action – discover first what the prospect of collection or satisfying a judgment might be. It is the most comprehensive report offered in today’s market and has been successful in assisting the property management industry in making decisions regarding the next course of action. The Asset Accumulation Report will identify assets and liabilities and locate the skipped tenant for service purposes. This report will help make decisions at different stages; from the time the tenant first falls into arrears to the time the tenant makes the midnight move. The report assists in dealing with a rent abatement request or when considering terminating a tenant’s lease for unpaid rent. The report is an excellent decision-making tool for property managers, giving them the answers, they need prior to sending a case to collection or a law firm.
What Information Does an Asset Accumulation Report Investigate?
Asset Accumulation Reports not only look at assets owned by the delinquent tenant but also liabilities. This will help give you and/or your lawyer a better idea of the probability of debt recovery.
Already Started the Litigation Process? – Is It Too Late to Use an Asset Accumulation Report?
While it is better to go into any debt recovery process with the most information possible, it is never too late to take a better look at your debtor or defendant to determine whether there is a probability of debt recovery.
At Quality Credit Reporting, we have years of experience helping property managers evaluate a tenant’s status, specializing in timely reports that assist in pre-judgment collections and post-judgment recovery.
For more information about our Asset Accumulation Report, download our Identify Delinquent Tenant’s Assets and Liabilities Brochure or contact us today.
RENEWAL REPORTS DURING COVID-19
Although your tenant may have an option to renew, assessing your risk for a further term still makes sense. Your tenant may now have breached its option to renew and be in default or looking for rent relief via deferral or abatement. Many other tenants are still fully or partially operational or temporarily closed but lack sufficient cash flow or access to additional operating capital needed to continue long term. This is the time to assess the renewal to protect your investment.
The more you know about the tenant the better. A tenant’s situation can change dramatically during the course of their lease and considering the impact of COVID-19, a tenant’s situation is changing daily.
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).
- And more...
In order to protect your investment, it is crucial to approach your renewing tenants as you would your prospective tenants, with increased due diligence.
To learn more, download our brochure: Review Your Tenant – A Fresh Assessment of Risk
We hope you find the information helpful and informative. If you have any questions, please let us know and we will be glad to offer assistance.
Tags: Deliquent Tenants