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4 Things You Should Know About Commercial Tenant Screening

by Michael George June 10, 2022
written by Michael George June 10, 2022

There is around $16 trillion dollars worth of commercial property in the US. If you own a portion of it, you’ll probably be renting some out to commercial tenants.

If you’re a commercial property owner, it’s vital you know you can trust your tenants. After all, they could be a major part of your livelihood. One of the best ways to ensure you’ve got a great commercial tenant is to conduct a thorough screening process.

There are a few things you should know about a commercial tenant background check. Read on to find out more.

1. It Can Save You a Lot of Money in the Long Run

There’s a small cost associated with tenant screening of any kind. Whether you do it yourself or hire an outside agency to help, there are certain expenses that can’t be avoided.

Some landlords let this cost put them off the screening process altogether. That’s a bad idea. Thorough and efficient screening can save you money in the long term.

For starters, you can weed out problem tenants who might be more likely to default on their rent. That could potentially save you thousands.

Next, you could save yourself some money on potential legal costs. If you fail to run proper screening and your property is later used for illegal purposes, you could face a court case for negligence, with the costs potentially running into the hundreds of thousands. Avoiding that is worth any cost!

2. Commercial Tenants Need Screening Just as Much as Regular Tenants

Some landlords are under the illusion that screening commercial tenants isn’t necessary or isn’t as important as standard screenings. They might think tenants who are in business are more trustworthy or financially stable.

That couldn’t be further from the truth. Commercial tenants are just as likely to cause problems for their landlord, so screening is absolutely necessary.

Failing to conduct proper screening can force you to carry out commercial tenant evictions if things go wrong. That’s a lot of hassle and could lead to huge costs in time and money if you don’t carry out due diligence.

3. Commercial Tenant Screening is Best Done by Professionals

If you’re inexperienced with commercial tenant screening, you’re far more likely to make mistakes. You likely don’t know the correct procedure to conduct a proper screening and you might lack access to some necessary tools and resources.

There’s a lot to know about the subject, including your local commercial tenant rights.

4. Meeting With Tenants Is Vital

A proper commercial tenant screening should include several important steps, including checking your tenant’s background and previous rental record. But there’s an important step some landlords often forget.

It’s vital that you meet any prospective tenant face to face. That way, you’ll be able to get a feel for their personality and ask any pertinent questions.

Feeling Like a Commercial Tenant Pro?

When it comes to commercial tenant screening, it’s always best to err on the side of caution. It’s a thorny issue littered with pitfalls and all sorts of things can go wrong if you’re not careful. But if you do your research and get a little extra help, it will be well worth it in the end.

We hope you enjoyed our article! If you’re looking to read more, check out our blog. We’ve got tons more content ready for you to read.

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