Commercial property owners are eager to make the most of each square meter of retail space. A nightmare of any landlord is vacant space. However, one should not try to fill the premises at any cost. In an effort to lease the premises as soon as possible, one can «run into» unscrupulous tenant. Then nothing but losses should be expected.
Basics of Tenant Screening
Tip 1: Take into account finances
One of the main factors you should consider when choosing a lessee is their financial and credit history. Property owners must ensure that the company can afford paying the rent.
Tip 2: Analyze business plans
Consider in detail the business plan of the potential tenant. You, as a landlord, must make sure that the company has prepared a sound business model.
Tip 3: Think of your other tenants
Will other lessees win from the new company in the building? It is very important that the future tenant be significantly different from other companies operating in this office space. It is worth considering the demographic indicators with which the business works, as well as what specific products it offers and how much they cost.
Tip 4: Learn more about the business history
Having a competent business plan is not enough. You would want to make sure that the company has experience and the ability to implement its business plan. To make sure that you rent out the space to a quality tenant, you should conduct a study and talk with a potential tenant about the plans and the history of the company.
Tip 5: Is the tenant ready to cooperate?
Of course, you do not want to deal with a lessee who will become a problem for real estate management. You must find out whether it will be easy to work with the tenant by contacting his previous landlords and personally communicating with the tenant to understand his nature.
Your tenants should complement each other and not compete with each other. The right selection will provide low vacancy, stable customer traffic and rent.