Commercial leases always take longer than the residential leases. Generally, you lease a commercial premise for about three to five years. The process of setting up a commercial premise is quite involving in terms of time and money. It is paramount that a shrewd landlord seeks for the background information of him who he wants to give the keys of such an investment. Below are some of the listings of a commercial real estate that you really want to know as a landlord before renting out that office space.
Establish a pre-tenant screening process
All your prospective renters need to fill a tenant application form. Let the form require the tenant to fill in their name and social security number among other details you may need for your background check. Ask for permission from the prospect, to look in to his credit score.
So many online services exist, that run credit checks of a person on behalf of a third party such as a landlord. On receiving the credit score, you should carefully review it and seek for explanations in the event of a delinquency. It is from the credit report that you will get a clear understanding of your applicant. If they have suffered bankruptcy, or they are well known to pay their bills late, you will know from the report. You really don’t want to miss out on such information as a landlord.
Get personal info
Before leasing out your commercial real estate property, you need to ask and record the lessee’s personal information. In most cases, applicants always give company’s information rather than their own info. It is your right as an investor to know whether the tenant is capable of paying rent, were the company to close shop. It is also your right to know the criminal background of the applicant if there is any.5
Contact previous landlords
In the application form, you should ask the applicant to give the contacts of some of their few past landlords. An earlier landlord has an experience with the tenant and can give you a clear picture of who your applicant really is. If an applicant is not willing to share the contacts of their past landlords, then this is an indication that’s there is a high level of dissatisfaction on the side of the landlord in regard to the tenant.
Getting Assistance from pro screening firms
There are numerous screening firms that have specialized in pre-tenant screening. Normally, such companies will do a better job than what you could do on your own. If you engage the services of a very reliable firm, you are sure that if they approve a tenant and recommend them to you, you have an asset that will guarantee you the peace of mind than any landlord always seeks for.