{"id":8189,"date":"2019-02-04T00:29:44","date_gmt":"2019-02-04T00:29:44","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/naborly-protects-landlords-investments\/"},"modified":"2023-10-24T04:04:58","modified_gmt":"2023-10-24T04:04:58","slug":"naborly-protects-landlords-investments","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/news\/naborly-protects-landlords-investments\/","title":{"rendered":"Naborly protects landlords’ investments"},"content":{"rendered":"

Get Landlord agreement forms here<\/a><\/p>\n

As every landlord surely knows, running a credit check during the tenant selection process is paramount. However, not every landlord realizes what to do with the information the credit check reveals.<\/p>\n

\u201cEvery independent landlord knows that to screen a tenant, you have to look at their credit, but a lot of them have no idea how credit relates to a tenant\u2019s ability to pay rent on time,\u201d said Jerome Werniuk, director of sales at Naborly Inc<\/a>., which runs free credit and background checks. \u201cNinety-five percent of landlords have tenants show up with their own credit file, meaning they go to Credit Karma or Equifax, but when we hear professional tenant stories, these people come with doctored credit checks.<\/p>\n

Doctoring a credit check is as easy as finding a template online and filling it in as one wishes. It\u2019s what Werniuk describes as a huge problem within the industry.
\nWhile savvy landlords realize they can obtain credit checks from Equifax or TransUnion, many still don\u2019t know, nor have time, to mine the information therein to decipher a tenant\u2019s capacity for prompt rent payments.<\/p>\n

\u201cTo get a credit file from either of the credit bureaus, they have to pay for it and a set-up fee for the individual\u2019s report, but there\u2019s a heavy credentialing process to pull somebody\u2019s file,\u201d said Werniuk. \u201cEven when the landlord gets a credit file, they don\u2019t know how to read it. They don\u2019t know exactly what an R9 is or how someone paying a cell phone bill on time impacts their ability to pay rent. So credit is not necessarily a good tool for independent landlords.\u201d<\/p>\n

Naborly builds a different type of credit report using critical criteria like contemporary cost of living and verifiable income to determine a potential tenant\u2019s ability to pay rent. It has proven so popular that, when it launched in February 2018, Naborly screened 100 people a week. Now, it screens at least that many people in a day.<\/p>\n

“The biggest feedback we\u2019ve received from landlords is our tool is amazing at assessing risk so that they can properly evaluate whether or not to accept the rental application,\u201d said Werniuk. However, there remain risks that are extremely difficult to predict. Landlords have said that many of their previous evictions \u00a0were due to circumstances that changed after the tenant moved in, like job loss or some other unforeseen, and expensive, event in their lives. Nobody can predict those things.\u201d<\/p>\n

The average cost of eviction in Ontario is $9,000, and that could cripple an investment. In response, Naborly has rolled out Rent Guarantee, which doesn\u2019t just risk assess but also protects the landlord for the full term of the lease. In effect, Naborly cats as the tenant\u2019s co-signor, which shields the landlord\u2019s investment.<\/p>\n

\u201cIt\u2019s based on the Naborly report and the risk score we give, which directly correlates to a tenant defaulting on rent,\u201d said Werniuk. \u201cWe give a quote for how much rent guarantee will cost. They can have Naborly become a guarantor on the lease, meaning if the tenant ever defaults then Naborly steps in and covers the rent for up to six months. Our primary customer for Rent Guarantee is the landlord who only owns one or two units because if they don\u2019t collect rent for two or three months, they\u2019ll have issues paying their mortgages and they could lose the property.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Get Landlord agreement forms here As every landlord surely knows, running a credit check during the tenant selection process is paramount. However, not every landlord realizes what to do with the information the credit check reveals. \u201cEvery independent landlord knows that to screen a tenant, you have to look at their credit, but a lot […]<\/p>\n","protected":false},"author":6,"featured_media":27225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8189"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8189"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8189\/revisions"}],"predecessor-version":[{"id":21692,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8189\/revisions\/21692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27225"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}