Posted by: Daryl & Wendy Ashby | July 30, 2010

Landlord Alert

For you who are Landlords or planning to purchase investment properties, a news bulletin has just been release which identifies new legislation that will limit the amount of information you can acquire via a credit check.

With the increasing incidence of identity theft and related fraud, both major Canadian credit reporting companies are instituting additional requirements to ensure the protection of the personal information of credit applicants.  While most of these changes affect you as a business person, some will also affect your ability to obtain credit reports.  ROMs have negotiated two options with TransUnion:

Option 1:  Continue to receive full credit reports, requiring TransUnion or its representing company to conduct a site visit of your business premises.  TransUnion charges $75 for this visit.

Should you choose this option, these site visits will be conducted with a representative of TransUnion or other local company.  The visit will consist primarily of the following:
    > confirmation that your business is what it purports to be (i.e. you aren’t a collection agency masquerading as a rental property owner or manager!);
    > confirmation that all credit report inquiries and reports are maintained securely;
    > confirmation that the above information is properly and securely destroyed after it has served its purpose.

Option 2:  No site visit is conducted, resulting in your receiving less information (not a full credit report), but sufficient information to assist in your decision making relative to tenancy applicants.  This will be in the form of answers  several relevant questions, such as “Are there any collections?”  “Do any of the trades have past due amounts?”

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