What to Ask Commercial Property Tenants, BEFORE Signing a Lease

By E-Renter Tenant Screening
Posted on November 24, 2008 under Landlord Tips | icon: commentBe 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!

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