Questions to Ask Tenants in Leasing a Commercial Real Estate Today

If you haven’t leased a commercial property before or probably the past experience with a tenant is not worth remembering, it is important to be able to trust that the individual or entity that will occupy the space will not go against the set rules and regulations in your tenancy agreement. This should include cash flow, property damage, and late payment. Nothing causes disputes between a landlord and a tenant than these problems. To ascertain whether a tenant is likely to be reliable, here are some questions to ask before leasing your commercial property.

1. Is This Your First Time Renting A Commercial Property?

If they answer no to this question then make sure you visit or contact their current premises to get an idea of the condition of the property. if possible, meet with the landlord or property manager for further clarification.

2. Why Are You Relocating?

Office relocation happens for many reasons including expansion, rental rates or in search of greener pasture. In the worst-case scenario, they could be moving due to a dispute with the property manager. If they are moving because of a dispute, try to know the root cause of the disagreement. This will help you determine who’s at fault.

4. Have You Ever Been Evicted?

The primary reason for evicting a tenant is when the culprit goes against the laid down rules in the lease agreement.  Ask if they’ve ever been evicted. Don’t expect a straightforward answer to this question. First, you need to encourage being open and honest with each other. If the answer is yes, then you should know the reason why. This way, you can decide whether or not to go ahead with signing the lease agreement.

5. When Are You Moving In?

You need to know when your new tenant is likely to occupy the space. If he or she provides a realistic date then you can put pen to paper. If, on the other hand, they leave you with an undefined date, then you should restrategize. What if they never showed up afterward, you’re left with an empty property? To ascertain their commitment towards leasing the property, request for a security deposit.

6. What Is Cash Flow Like?

You don’t want a tenant that will delay payment hence you need to ask if they can be able to meet up with the monthly payment. Let them know you need a guaranteed payment by a certain date. You need to make sure they can afford to pay on a monthly basis, at the right time.

7. Why Do You Want To Rent The Property?

This is one of the most important questions to ask a tenant in leasing a commercial real estate. First, you want to know if the property type fits the purpose. For instance, an office space would not be ideal as an auto mechanic workshop. Overlooking this aspect might cause costly damage to the property.

Create a checklist to help you with every lease negotiation and particular property type. This will help you stand out among the seas of local property managers