One of the top methods of ensuring you choose the right renters for your commercial property is through a commercial tenant screening report. This report will reveal everything you need to know about your applicants, including:
- UCC (Uniform Commercial Code) Filings:
A notice that the lender has an interest or lien against an asset being used to secure financing. This can have negative effects on their overall credit risk, scoring, and other risk analysis.
Bankruptcy offers legal protection from creditors to businesses that no longer have sufficient cash flow to pay their debts or operate their companies.
If a business has funds that are past due or accounts that are in default, it may be sent to a collection agency by its creditors. Often, creditors turn to collection agencies after multiple failed attempts to collect the debts they’re owed.
- Credit Limit Recommendations:
The maximum amount of money a lender will allow the business to borrow while using credit cards or its line of credit.
- Judgement Filing:
A lawsuit decision by a court that’s been entered into the public record. If a judgement is entered against a business, debt collectors have more tools at their disposal for collecting the debt, like garnishing income or bank accounts.
When working with commercial tenants, it’s important to remember that how a business is doing financially often isn’t reflected in an individual’s finances. The information uncovered in a commercial tenant background check will help you make a better decision about which tenants are right for your property, so you can continue to protect your business and your investments.
Make the Best Decisions for Your Property with Commercial Tenant Screening
Every commercial property is unique, whether you provide office space or retail storefronts. Depending on the type of space you’re offering for rent, you’ll want to consider different kinds of applicants. Retail tenants may be less stable unless they’re an established and successful business already. There are always exceptions, of course, such as startup companies. Generally, though, you can expect office staff to be more buttoned-up. A commercial tenant screening will ensure that you’re working with people who have a solid history of making rental payments and maintaining their property well. It gives you insights that let you read between the lines. If a business is moving to a smaller or larger space, why is that? Did they need to downsize or are they franchising?
Each of those scenarios comes with its own benefits and risks. If you want to know more about their history, you can review a commercial tenant background check to learn about how long the business has been around. Newer businesses can be a risk, but they could also be a fantastic investment that brings additional high-end tenants to your retail properties. We also thoroughly screen the lease signer, because they will be ultimately responsible for fulfilling the lease. CommercialConnect screens both the business and the leaseholder for you, making it easy to make a rental decision. As always, a screening report is meant to give landlords the ability to make better decisions, but your own instincts are equally important.
Fast, Easy, and Convenient Commercial Tenant Screening
Whatever you find in the commercial tenant screening report, consider your tenant pool from all angles. It’s not only about who looks best on paper, but who will be the best fit for your property and the area. Here at Tenant Screening Center, our team is here to support landlords and property managers throughout this process. Our CommercialConnect product is specifically designed for commercial landlords. It screens both the business as well as the lease signer for just $75.00. It’s fast, easy to use, and available 24/7 online. If you have any questions, we invite you to call us at 1-800-523-2381 or fill out our online form. We also frequently update our blog with useful advice for property owners.
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