The length of a commercial lease is longer than a residential one. Generally, a commercial unit is taken on rent for 3-5 years. Since there is a lot of money involved, it is important to screen tenants before renting. Read on for the commercial real estate listings you need to know before renting office space.
Have an established process for screening tenants
There should be an established process for screening residents. Prospective tenants must fill out an application form. Permission has to be taken for credit check in the form. The law ensures that no discrimination is done by the landlord while leasing his property.
review credit report
There are several online services that run credit checks on residents on behalf of landlords. After receiving a credit report, owners should carefully review it and seek clarification if there are any inaccuracies. The report will clarify whether the tenant has a history of late payment of bills or has faced bankruptcy.
receive personal information
When leasing a commercial real estate for rent, the owners should ask for the personal information of the lessee. Often during this type of deal, tenants use the company’s credit information, not their personal information. If the resident is new to the business, it is the owner’s right to know if he/she can afford to pay the rent if the business closes. The personal information will also help the owners to know whether the tenant has a criminal background or not.
contact previous landlords
Most applications ask tenants to fill in the name and contact information of their previous landlords. However, the owners ignore this and do not call previous owners for references. This is a big mistake because the previous owner can provide valuable information that would not have been available otherwise. Therefore, it is imperative to contact the previous owners of the prospective occupant before renting.
Get help from tenant screening firms
It is not always possible for an owner to do all the checking himself. In such a scenario, they should take help from tenant screening firms that do credit checks, reference checks, etc. Landlords can take decisions based on the reports of such firms.
in person participation
The final part of the screening process should involve a face-to-face conversation with the tenant. There are many things that cannot be communicated in an application or telephonic discussions. During such conversations, owners should study the lessee’s body language. This is a good indicator to know whether the occupant is reliable or not.
Proper screening does not cost the owners much, but brings huge benefits to them in the long run.