Canada's Condominium Magazine
Landlords across Canada have been vocalizing concerns over problematic tenants for years. Faced with issues such as damaged property and rental income loss, these landlords and property managers have requested a “bad tenant registry” to assist them in keeping their buildings safe and hassle-free.
The Tenant Verification Service has recently granted that request, launching its affiliate website. While TVS already records tenant habits, the new website offers the information as part of a Landlord Credit Bureau. Reporting tenant habits to the credit bureau is quick and easy. Simply access the Tenant Pay Habits tab via the tenant verification website and start reporting.
The website contains a comprehensive database displaying tenants and their standings, allowing landlords to determine which tenants pose risks. The database lists both high and low risk tenants, creating a fair and unbiased list of tenant reports rather than merely supplying landlords with a platform in which to bash tenants.
This move benefits tenants and landlords alike. While landlords are able to weed out the problematic renters, satisfactory tenants gain access to buildings and homes they otherwise would not have due to poor credit. The database allows good tenants to benefit from making payments on time, taking care of their homes, adhering to the terms of their lease, etc. Landlords report on-time payments, which are then reported to Equifax via the Landlord Credit Bureau, improving the tenant’s credit score.
A tenant with a low credit score due to college loans or medical needs, for instance, may be favored over one with a higher credit score if the former is in better standing as a tenant. While poor choices in the past may have led to poor credit, consistent rent payments and good standing will be more appealing to landlords than outstanding financial credit and terrible renting habits, damaged property, etc. Their only concern is maintaining the property and ensuring rent will be paid on time, every time.
The registry also stands to reduce the number of defaults and tenant issues. Tenants are informed of the database and their potential to be reported to the bureau, which would limit their renting options in the future. Tenants who receive a notice will be far less likely to default on their payments. Tenants have access to the information provided on them, allowing them to monitor the information for accuracy.
High risk tenants are negatively impacted, having their full rental history readily accessible. Missed payments, evictions, etc. will be reflected in their reports, limiting their options and raising housing costs for these tenants if they do find a place. A tenant in poor standing will likely have a much higher down payment than one with a good rental history. Consequences such as these will go a long way in reducing problems because tenants will be held accountable and thus forced to improve their renting habits, rather than abusing landlords and using them as a “revolving line of credit.”