What to Ask Commercial Property Tenants, BEFORE Signing a Lease

By E-Renter Tenant Screening
Posted on November 24, 2008 under Landlord Tips | Be the First to Comment

In addition to the services of a good tenant screening service, owners can substantially reduce risk by asking potential commercial real estate tenants these questions, and requesting additional information:

• Who is the tenant, and who will guarantee the lease?
• Is it guaranteed by the legal business entity, or also by an individual?
• Who are the expected customers (target market) of the business?
• If this is a new business, request a copy of a business plan that shows a history of the business, the ownership and management and their resumes, target market, operating budget (where is the rent coming from?).
• If this is an established business, ask for proof of financial success over the last three to five years in the form of financial statements and/or tax returns.
• Perform a business credit check.
• Get personal financial statements for those parties who are be guaranteeing the lease.

This information will give a much clearer picture of the health of any business who wants to occupy space in one of your properties!