Tenant Selection Checklist for Commercial Real Estate

The duration of a commercial lease is greater than that of a residential lease. Generally, a business unit is rented for 3 to 5 years. Since this involves a lot of money, it is important to filter tenants before renting. Read on for essential commercial real estate listings before renting office space.

Have an established process for selecting tenants

You have to have an established process to select the people. Potential tenants must complete an application form. In the form, you must ask permission to do a credit check. The method ensures that the landlord does not discriminate when he leases his property.

Review of the credit report

There are many online services that check the creditworthiness of residents on behalf of homeowners. After receiving the credit report, homeowners should examine it carefully and ask for an explanation in case of delay. The report will clearly indicate if the tenant has already paid their bills late or went bankrupt.

Get personal information

When renting a commercial building for rent, homeowners must request the tenant&39;s personal information. Often, during such a transaction, tenants use the company&39;s credit, information and not their own personal information. If the resident is new to the business, homeowners have the right to know if he can pay the rent in case the business closes. Personal information will also help homeowners know if the tenant has a criminal record or not.

Contact previous owners

Most applications ask tenants to provide the name and contact information of their previous owners. However, homeowners tend to ignore it and not call past owners as references. This is a serious mistake because a former owner can give valuable information, which is not available otherwise. Therefore, before renting, it is imperative to contact the former owners of the prospective occupant.

Get help from tenant selection companies

It is not always possible for an owner to do all the checks himself. In such a scenario, they have to seek the help of the tenant control firms that perform credit checks, referrals, and so on. Owners can make a decision based on the ratio of these companies.

In-person interaction

The final part of the selection process should include a face-to-face interaction with the tenant. Many things can not be communicated in an app or phone chat. During such interactions, homeowners must study the renter&39;s body language. This is a great indicator for whether the occupant is reliable or not.

Adequate screening does not cost homeowners a lot, but provides huge benefits in the long run.