Commercial Acquisition Due Diligence – Discover the Credit History and Current Financial Outlook of the Existing Tenants

Commercial Acquisition Due Diligence – Discover the Credit H...

Sue McConnachie   |     Oct 31, 2019

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.

5 Ways to Steer Clear of a Potentially Bad Commercial Tenant

Sue McConnachie   |     Mar 22, 2019

Commercial leasing discloses a potential hazard of risk and liability. Ensuring you choose the right tenant, at the outset, can dramatically decrease the risk and minimize exposure to arrears, defaults, rent concessions, evictions, legal claims, theft and more. 

Common Questions Regarding Credit Checks for Renewal Tenants

Sue McConnachie   |     Mar 07, 2019

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:

What Landlords Need to Know About Changes to PIPEDA

Sue McConnachie   |     Dec 28, 2018

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. 

Why Instant Reports are not the Best Solution for Screening ...

Sue McConnachie   |     Nov 23, 2018

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. 

How to Complete a Prospective Tenant Application

Sue McConnachie   |     Oct 31, 2018

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. 

The Current Tenant Base Reveals the Real Value of the Proper...

Sue McConnachie   |     Jul 04, 2018

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. 

Checklist For Effective Due Diligence of Commercial Leases

Sue McConnachie   |     May 08, 2018

Commercial leasing is risky business but ensuring you choose the right tenant, at the outset, can dramatically decrease the risk.

5 Ways Enhanced Tenant Screening Can Help Property Managers

Sue McConnachie   |     Mar 28, 2018

Success in leasing out commercial real estate depends greatly on the companies that you rent your properties to.

While many businesses look good on paper and can satisfactorily answer your questions during the application process, there is often hidden information which could have a negative impact on your business and your property.  

Perhaps your prospect has a bad history of not paying bills on time and is in arrears with creditors or maybe limited cash flow makes them unable to meet obligations. In some cases, they may even be going about business in a way that could damage the reputation of your building, lowering its value and minimizing your future profits.

Reduce Property Management Risks with Tenant Due Diligence

Sue McConnachie   |     Feb 14, 2018

The financial strength of your property management firm, for example cash flow from leases, largely depends on your tenants and the relationships that you build with them. By understanding who your ideal tenant is, and ensuring that you select the best tenants possible, you can reduce risk and improve your company’s bottom line.