The length of a commercial lease is longer than a residential one. Generally, a commercial unit is rented for 3-5 years. Since it involves a large amount of money, it is important to screen tenants before renting. Read on for essential commercial real estate listings before renting office space.
Have an established process for screening tenants
One must have an established process for evaluating the inhabitants. Prospective tenants must complete an application form. On the form, one must seek permission to do a credit check. The method ensures that there is no discrimination by the landlord in leasing the property from him.
Check credit report
There are many online services that check occupants’ credit on behalf of homeowners. After receiving the credit report, homeowners should review it carefully and ask for an explanation if there are any delinquencies. The report will make it clear if the tenant has a history of paying bills late or has experienced bankruptcy.
Obtain personal information
When leasing commercial property for rent, owners must request personal information from the lessee. Often during such an arrangement, tenants use the company’s credit and information and not their own personal information. If the resident is new to the business, it is the owners’ right to know if he can pay the rent in the event of the business closing. Personal information will also help landlords to know if the renter has a criminal record or not.
Contact the previous owners
Most applications ask tenants to fill in the name and contact information of their previous owners. However, owners tend to overlook it and don’t call previous owners for references. This is a big mistake, as a previous owner can provide valuable information that would not otherwise be available. Therefore, before renting it is essential to contact the previous owners of the potential occupant.
Get help from tenant screening companies
It is not always possible for an owner to do all the checking on their own. In such a scenario, they should seek help from tenant screening companies that do credit checks, reference checks, etc. Owners can make a decision based on the report from such companies.
in person interaction
The last part of the selection process should include a face-to-face interaction with the tenant. There are several things that cannot be communicated in an app or phone discussions. During such interactions, owners should study the renter’s body language. This is a great indicator to know if the occupant is trustworthy or not.
Proper detection doesn’t cost owners much, but it pays off enormously in the long run.