You're standing outside your newly renovated commercial property, a smile playing at the corners of your lips as you admire the sleek facade and imagine the bustling business that will soon call it home.
But wait! Before you can start popping champagne corks in celebration, there's a crucial step to take: finding the perfect tenants.
We're here to help you out. Let's go through how to optimize your commercial tenant screening practices.
Perform Credit and Background Checks
Performing credit and tenant background checks is a critical aspect of tenant screening; it's super important for finding quality tenants for your commercial property.
Before conducting any credit or background checks, ensure that you have written authorization from the prospective tenant. This authorization should be included as part of the rental application and should clearly state the types of checks you will be performing.
In addition to credit checks, evaluate the tenant's income and debt-to-income ratio. That will help you ensure they have sufficient financial resources to afford to pay your property's rent and other expenses associated with the lease.
Review Business Documentation
Ask prospective commercial tenants to provide comprehensive business documents that demonstrate the legitimacy, financial stability, and viability of their business.
Confirm the accuracy of the business entity's information provided by the tenant. These might include things such as the legal business name, entity type, and registration details with the relevant government authorities.
Research the tenant's business online and check industry publications.
Review customer feedback and reviews. Seek referrals or recommendations from business associates or industry contacts.
Conduct Interviews
Arrange either in-person or virtual interviews with prospective commercial tenants. This allows you to interact directly with the tenant, assess their professionalism, communication skills, and suitability for your Lynnwood real estate.
Consider the long-term potential of the landlord-tenant relationship during the interview. Evaluate whether the tenant is committed to a long-term lease, has growth plans that align with your property's capabilities, and is likely to be a stable and reliable tenant over time.
After conducting interviews with multiple rental applicants, evaluate the overall fit based on their responses, qualifications, business plans, financial stability, and compatibility with your property. Select tenants who demonstrate a strong fit and are likely to be quality, long-term occupants.
Hire Commercial Property Management
You might want to bring in professional help. Commercial property management companies often have dedicated teams or professionals with expertise in tenant screening.
They are familiar with industry best practices, legal requirements, and effective screening techniques. That can help identify and select quality tenants for your property.
Property management professionals can provide objective assessments of prospective tenants based on their experience, criteria, and evaluation methods. They can identify red flags and assess risk factors. That way, you can make informed decisions that align with your investment goals and property requirements.
Use These Commercial Tenant Screening Practices Today
With these tenant screening practices, you'll have the best possible tenants in your commercial properties in no time.
Are you looking for commercial property management help in the Lynnwood area? Our franchise has been benefiting investors like you for decades.
Contact us today.
