How to Screen Commercial Building Tenants

by Contributor ; Updated September 26, 2017
Screen Commercial Building Tenants

How to Screen Commercial Building Tenants. Commercial rentals are different from residential rentals in the length of time for the rental. Generally a tenant rents a commercial unit for a three or five year term. The amount of money involved is substantial, which is why tenant screening is important.

Establish a process for screening tenants. You should have an application for prospective tenants to fill out. Every prospective tenant should fill out the application in order to show that you don't discriminate. On the application, you should get permission to perform a credit check for the prospective tenant.

Use a credit report for screening tenants. The three national credit bureaus provide credit history that shows if a prospective tenant has a history of paying bills late, has gone through a bankruptcy or has been evicted. In order to get a credit report, you need to have the prospective tenant's name, address and the social security number of federal tax identification number.

Ask for personal information. In commercial leasing, businesses often use a corporation's credit and information rather than their personal information. If the prospective tenant is a new business, you should perform a personal tenant screening to determine if the owners have the ability to pay the lease in the event the business closes. A personal guarantee can be written into the lease if necessary.

Hire a tenant screening company. Tenant screening companies perform criminal searches, credit checks and can check references provided by prospective tenants. You can use their report as a basis for your decision and as documentation that you aren't discriminating based on race, sex or religion. You can often hire a company online like Tenant Screening.

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