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.
Quality Credit Reporting specializes in creating flexible, in-depth comprehensive reports that include valuable credit information typical database searches would not. This additional credit information on prospective tenants gives property managers the negotiating tools they need to secure a lucrative tenant in their valuable space.For more on prospective tenant credit reports, click here.
A change in corporate status, increased debt, defaulting with the Canada Revenue Agency and creditors, decreased liquidity, delinquent activity, a change in the corporate name or in the jurisdiction in which your tenant can do business - these are just some of the many changes that could occur from the time your tenant signed their original lease to the time they sign their renewal.
Being unaware of these changes could be detrimental to your continued success in property management.
That is why you need to treat each renewal tenant as you would a prospective tenant, screening them prior to renewing.
For more on risk at renewal tenant credit screening reports, click here.
During these unprecedented 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.
Skipped & Delinquent Tenant Reports Include:
Asset Identification
Liability Identification
For more on due diligence for skipped and delinquent tenants, click here.
It is difficult to assess the full impact on the commercial market, created by the COVID-19 interruption. However, it is predictable that there will be substantial increases for subleasing and assignments, particularly in the office market. With the spread of COVID-19, brought the shift to work from home, leading certain departments to operate remotely with productivity success. Tenants are now exploring downsizing current space through assignments and sublets.
With the negative financial impact on many tenants, it is important to ensure that the tenant remains viable when authorizing assignments or sublets. Credit reporting designed for the property management industry is important for the current tenant who will remain responsible under the lease as well as the assignee or sub-tenant. Depending on exactly what the lease stipulates the landlord usually has the authority to approve both assignments and sublets and therefore, also has the control to ensure that all parties, including current tenant, assignee or sub-tenant are capable of satisfying the lease terms.
By using comprehensive credit reporting, you can be sure you are selecting the right tenants, protecting your investment, maximizing return on property and reducing risk.
One of the best ways to do this is to review your tenants thoroughly, to help you identify:
For more on dealing with increased subleasing, click here.
When working in real estate advisory or the commercial property investment industry, due diligence is critical to a successful purchase. This is especially true when it comes to assessing the value and quality of an existing commercial tenant base and the future income stream of the property.
Go one step further. Look beyond the past performance of the existing tenants, as it is not always a reliable indicator of future performance.
Our Existing Tenant Base Financial Reports go beyond standard examination of receivables, lease terms, cost sharing, tax recovery and operating costs to remove uncertainty from decisions made to analyze the cost benefit of an acquisition. Our reports gauge the security of the future income stream by confirming you have high quality tenants.
For more on acquisition due diligence reports, click here.