OLA in "L'EXPRESS" (Semaine du 15 mars au 21 mars 2011)

Message
Author
User avatar
Hawk
Posts: 6583
Joined: February 15th, 2010, 2:36 pm

Re: OLA in "L'EXPRESS" (Semaine du 15 mars au 21 mars 2011)

#11 Unread post by Hawk » March 17th, 2011, 7:37 pm

We should hold back judgment for a while. They are a new company and things take time. It's a good idea.

Hopefully they will come here and we can help them work out the kinks in their plan, such as the one Greg brought up. If they can show me the value and get me to trust them, they could have over 100 units from me set up the next day...

User avatar
ColdFire
Posts: 18
Joined: March 11th, 2011, 9:49 am

Re: OLA in "L'EXPRESS" (Semaine du 15 mars au 21 mars 2011)

#12 Unread post by ColdFire » March 30th, 2011, 3:10 pm

We have been following this thread with great interest, and we are certainly paying close attention to your feedback. I would like to take this opportunity to answer the questions that we’ve read on this thread.

1. Going After the Tenant for Unpaid Rent:
The reporter may have misunderstood what we were saying about what we do with the debt once it is transferred to our care. It is true that we don't go after the tenants directly, but we may sell the debt to a collection agency for retrieval. The determination on whether or not we will resell the debt depends on many factors, one of which is how likely we are to successfully obtain the lost money. As a business, we need the flexibility to make those decision independently while considering business of the company as a whole. In the future, we certainly have plans to enter into agreements with credit verification agencies and companies that would hold the tenants accountable for their actions.

2. Not an Insurance Company:
We are not classified as an insurance company for several reasons: a) we do not assess any risk on the landlord whatsoever; b) we do not indemnify landlords for any losses -- we purchase debt; c) we do not do any profiling of the tenant or the landlord.

3. Making a Sell Request:
One of the stipulations to sell an order to BuyMyRent is that the landlord must have done a proper credit verification of a tenant before giving them the keys. Further, the credit verification cannot contain any blatantly obvious issues that would render them an undesirable candidate such as a recent bankruptcy, a very poor credit history, or a history of unpaid rent. Our intent with our service is to give landlords the ability to reclaim their losses even when they've done what they could to prevent bad-tenant losses.

The following is a full breakdown on what is required to sell an order:
1. The landlord is required to perform a full tenant screening process via a recognized credit verification agency.
2. The credit verification of the tenant cannot contain a bankruptcy in the last 7 years, or any history of unpaid rent.
3. The rent of the unit cannot exceed 30% of the tenant(s) total household income before taxes.
4. The owner of the plan must be the owner of the property. Proof of ownership must be provided when filling for a sell request (selling an assignment of debt).
5. To file a sell request, the plan owner must have received an order from a recognized body authorized to deal with landlord and tenant disputes.
6. The order must come from a decision that is based on a breach that occurred during the term of the plan.
7. The following documentation will be required to be provided to sell an order:
  • Copy of the Lease Agreement between the landlord and the tenant in question;
  • Proof of ownership for the property;
  • Copy of the Order form the tribunal or court; and
  • Any other information required by BuyMyRent as a show of proof to satisfy the above criteria.
4. Our Online Documentation
We are most pleased with the feedback that you’ve provided to us on this site, and we will do our upmost to update our website the soonest with clearer information and more details.

Finally, and most importantly, this is a service for you -landlords. Make no mistake about that. It may not appeal to all of you as all of you have different needs and expectations, but rest assured that if there is a better way that we can be servicing your needs, we will listen. This thread has been interesting, and we've certainly heard you.

P.S.: We're all over 35 years of age. ;)
BuyMyRent
Toll Free: 1 (866) 698-8786
www.buymyrent.ca

Skitter

Re: OLA in "L'EXPRESS" (Semaine du 15 mars au 21 mars 2011)

#13 Unread post by Skitter » March 30th, 2011, 3:30 pm

Ok........since you are listening:

I think the concept is an interesting idea. You are capitalizing on the gross unfairness of the ontario residential tenancies act.

But I have some concerns.

The premium paid by the owner is based on the rent, for example a rent of $ 1,000 per month, it will pay $ 35, "says Martin Poirier

That is a HUGE premium to a small landlord. As said many times here, many small landlords (me included) actually have transfer money from my paycheck to my rental property account eveery month just to pay the bills for the rental. The rents dont cover the bills. ANOTHER $35 per $1000.00 is simply too much. Ido recognize you are runnng a business and must turn a reasonable profit, but I cant afford a $35 rent reduction on a $1000 monthly rent.



You require that:

-the landlord must have done a proper credit verification of a tenant before giving them the keys.
-Further, the credit verification cannot contain any blatantly obvious issues that would render them an undesirable candidate such as a recent bankruptcy, a very poor credit history, or a history of unpaid rent. -
-the landlord is required to perform a full tenant screening process via a recognized credit verification agency.
-The credit verification of the tenant cannot contain a bankruptcy in the last 7 years, or any history of unpaid rent.
-The rent of the unit cannot exceed 30% of the tenant(s) total household income before taxes.

The reality is if landlords actually DID the checks you require, there would be far fewer problems for landlords anyway. If I do the checks you require, I probably wont need your services. Again I understand you are running a business and must know the landlord has done their due diligence prior to renting to the tenant (otherwise you losses/payout would be huge)


Bottom line..........if I follow your requirements, I will seldom need your services and because I will seldom need your services (insurance), I cant justify paying the insurance fee.

Further to this, your requirements while sensible.......are actually in violation of the OHRC. Its housing policy states:

"landlords must only assess whether an applicant has enough income to pay the rent. They must not assess whether the balance of an applicant’s remaining income is adequate for non-housing related expenses.”

"Income information should be limited to confirming that the person has enough income to cover the rent. “
"You can only use income information to confirm the person has enough income to cover the rent. "


-unless we are providing govt subsidized rental accomodation (and almost non of us are), we are NOT allowed to use a rent to income ratio. We are also not allowed to view no credit as the same as bad credit.......and in fact.......under the OHRC, we may not even be allowed to reject a propsective tenant because tehy have bad credit.

If I follow your requirements to purchase your services, I may actually be violating the OHRC!!

Ontario is a screwed up world!
Last edited by Skitter on March 30th, 2011, 3:37 pm, edited 1 time in total.

helga
Posts: 1695
Joined: August 26th, 2010, 5:18 pm

Re: OLA in "L'EXPRESS" (Semaine du 15 mars au 21 mars 2011)

#14 Unread post by helga » March 30th, 2011, 3:36 pm

ColdFire wrote:2. The credit verification of the tenant cannot contain a bankruptcy in the last 7 years, or any history of unpaid rent.
3. The rent of the unit cannot exceed 30% of the tenant(s) total household income before taxes.
Don't both of these criteria run counter to the OHRC?
Generally, tenants that fulfill BuyMyRent's criteria are usually not trouble.
Very little risk, so I wouldn't bother insuring their rent.

Post Reply

Who is online

In total there are 561 users online :: 0 registered, 0 hidden and 561 guests (based on users active over the past 999 minutes)
Most users ever online was 10210 on December 12th, 2023, 8:47 pm

Users browsing this forum: No registered users and 561 guests