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 evaluate tenants before renting. Read on for essential commercial real estate listings before renting office space.
Have a process in place to screen tenants.
There must be an established process for the selection of inhabitants. Prospective tenants must complete an application form. In the form, one must request permission to do a credit check. The method ensures that there is no discrimination on the part of the owner while renting his property.
Check credit report
There are many online services that verify residents’ credit on behalf of homeowners. After receiving the credit report, homeowners should review it carefully and ask for an explanation if there is a default. The report will make it clear if the tenant has a history of late payment of bills or has suffered bankruptcy.
Get personal information
When leasing commercial property for rent, owners should request personal information from the tenant. Often during such a deal, tenants use company 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 they can pay the rent in the event that the business closes. The personal information will also help landlords to know if 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 overlook it and don’t ask for references from previous owners. It is a big mistake as a previous owner can provide valuable information, which would not otherwise be available. Therefore, before renting, it is imperative to contact the previous owners of the potential occupant.
Get help from tenant screening companies
It is not always possible for an owner to carry out all the checks on his own. In such a scenario, they should seek the help of tenant screening companies that do credit checks, reference check, etc. The owners can make a decision based on the report of these companies.
Interaction in person
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 application or phone conversations. During such interactions, landlords should study the renter’s body language. This is a great indicator to know if the occupant is trustworthy or not.
Proper screening doesn’t cost homeowners much, but it pays them huge long-term benefits.