The term of a commercial lease is longer than that of a residential lease. Generally, a commercial unit is leased for 3 to 5 years. Since it is a lot 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 selecting tenants
You need to have an established process for screening locals. Prospective tenants must complete an application form. In the form, you must ask for permission to do a credit check. The method guarantees that there is no discrimination on the part of the owner when renting his property.
Review credit report
There are many online services that perform credit checks on locals on behalf of homeowners. After receiving the credit report, owners should review it carefully and ask for an explanation if there is a default. The report will clearly indicate if the tenant has a history of paying late bills or has filed for bankruptcy.
Obtain personal information
When renting commercial real estate for rent, landlords must request personal information from the tenant. Often in such a transaction, renters use credit and company information and not their own personal information. If the inhabitant is new to the business, it is the landlords’ right to know if he can pay the rent if the business closes. Personal information will also help landlords know whether the tenant has a criminal record or not.
Contact previous owners
Most applications ask tenants to fill in the name and contact information of their previous landlords. However, owners tend to ignore it and don’t call previous owners for references. This is a huge mistake because a previous owner can give valuable information, which is not otherwise available. Therefore, before renting, it is imperative to contact the former owners of the future occupant.
Get help from tenant screening 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 tenant screening companies that perform credit checks, references, etc. Owners can make a decision based on the report of these companies.
The final part of the selection process should include face-to-face interaction with the tenant. There are several things that cannot be communicated in an application or telephone discussions. During such interactions, landlords should study the tenant’s body language. This is a great indicator of whether the occupant is reliable or not.
Proper scouting doesn’t cost owners a lot of money, but it pays off in huge long-term benefits.