Commercial real estate tenant screening list

A commercial lease is more than a residential lease. In general, commercial units are leased for 3-5 years. Because it involves a lot of money, it’s important to vet tenants before renting. Read on for important commercial real estate details before renting office space.

Have an established process for screening tenants

There should be an established process for screening residents. Prospective tenants must complete an application form. On the form, one must request permission to do a credit check. The method ensures that the landlord is not discriminated against when renting the property.

Review your credit report

There are many online services that run credit checks on tenants on behalf of landlords. After receiving the credit report, owners should review it carefully and ask for clarification if there are any errors. The report will clarify whether the tenant has a history of late payments or bankruptcy.

Get personal information

When leasing commercial real estate, landlords must request the tenant’s personal information. Often, during such a contract, tenants use the company’s credit information, not their own personal information. If the tenant is new to the business, it is up to the owners whether they can pay rent if the business closes. Personal information also helps landlords determine whether or not a tenant has a criminal background.

Contact previous owners

Most applications require tenants to fill in the names and addresses of their previous landlords. However, owners ignore it and don’t call past owners for reference. This is a big mistake as the previous owner can provide valuable information that would otherwise not be available. Therefore, it is important to contact the prospective resident’s previous owners before renting.

Get help from tenant screening companies

It is not always possible for an owner to do all the checks himself. In such a case, they should seek help from tenant screening firms that conduct credit checks, reference checks, etc. Landlords can make decisions based on the companies’ reports.

Physical interaction

The final part of the screening process should include a face-to-face meeting with the tenant. There are many things that cannot be conveyed in an application or a telephone conversation. During such interactions, owners should study the tenant’s body language. This is a very good indicator to know if the resident is safe or not.

A proper screening will not cost the owners much, but will pay off in the long run.

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