Should you renew your tenant? Can Your Tenant Continue to Satisfy the Obligations of Their Lease?

During the course of a lease, a tenant’s financial situation often changes. As such, making certain that you are aware of what those changes are prior to renewing the lease is important.

Even when a tenant has been reliable to date, the landlord is often unaware of developing financial issues or changes to corporate structure.

What could have changed since the original lease?

• 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)