RubyThe length of a commercial lease is more than a residential one. Generally, a commercial unit is rented for 3-5 years. Since it involves a great deal of money, it’s important to screen tenants before renting. Read on to know the essential commercial real estate listings before renting out an office space.
Have an established process for screening tenants
One must have an established process for screening inhabitants. Prospective renters must fill in an application form. In the form, one must seek permission to do a credit check. The method makes sure that there is no discrimination by the landlord while leasing out his property.
Review credit report
There are many online services which run credit checks on inhabitants on the behalf of landlords. After receiving the credit report, owners must review it carefully and ask for an explanation if there is any delinquency. The report will make it clear whether the tenant has a history of paying bills late or has suffered bankruptcy.
Get personal information
While leasing out a commercial real estate for rent, owners must ask for personal information of the lessee. Often during such a deal, tenants use the company’s credit, information, and not their own personal information. If the inhabitant is new in the business, it’s the right of owners to know whether he/she can pay the rent incase the business shuts down. Personal information will also help proprietors to know if the renter has a criminal background or not.
Contact previous landlords
Most applications ask tenants to fill name and contact information of their earlier landlords. However, owners tend to overlook it and don’t call up past proprietors for references. It’s a huge mistake as a past owner can give valuable information, which is not available otherwise. Therefore, before renting it’s imperative to contact previous owners of the prospective occupant.
Get help from tenant screening firms
It’s not always possible for an owner to do all the checks on his own. In such a scenario, they must seek help from tenant screening firms who do credit checks, reference check, etc. Landlords can make a decision based on the report of such firms.
Interaction in person
The last part of the screening process should include a face-to-face interaction with the renter. There are several things that can’t be communicated in an application or telephonic discussions. During such interactions, owners must study the body language of the lessee. This is a great indicator to know whether the occupant is reliable or not.
Proper screening doesn’t cost owners much, but reaps huge benefits for them in the long run.
