Screen your commercial tenants carefully with these tips!
No one likes to have a building sitting empty: not the local government, not the neighbors, and especially not the building owner. It’s an easy trap to fall into, however, if you’re playing Goldilocks and waiting for the absolute perfect tenant. At the same time, no one wants to sign a lease to a terrible tenant simply to have a building be occupied and then have that tenant fail in some way soon after. One thing you should be doing is screening potential tenants before spending time and money on more in-depth investigation. These questions are a good place to get started.
Who Are They?
There are two parts to this question. The more general question relates to the business: what sort of business are they, and what is their brand identity? Does the business have a strong history in the industry, and are they doing well? Does their industry and potential clientele work with the area you’re renting out? What sort of competitors do they have, and how adversarial might the relationship be? You should also find out more about the person making the inquiry. Is this a business leader or simply someone who was assigned the task of finding potential space?
What Do They Need?
Have a detailed discussion of what they need in their space. Are they going to need major changes or renovations to your property in order for it to work? Are they looking for space immediately or down the line a bit? Will there would be time to do the work that might be needed? It is important to fully understand what they need to know if you are both a good fit.
Where Are They Coming From?
Ask questions about their previous location. If possible, check the location they currently occupy and see how they’re using it. It is especially important to have a conversation about the reason they’re looking for new space. Depending on the reason, it could be something that rears its head for you down the line.
What Is Their (Total) Rental Budget?
Make sure that you are both on the same page about the costs of your building when you discuss their budget. This is especially important if they’re leaving their current space because of costs. Your lease agreement is going to clearly lay out who is responsible for what costs, like insurance, maintenance, and others. Don’t wait till that stage to discuss this part however – make sure they clearly understand that the rent is just part of their cost.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.