Commercial properties make strong investments, but they aren't always easy to manage.
You can have a building in the best area of town, but that doesn't always guarantee you'll attract great applicants. If you don't have the right tenant screening process, you'll find yourself dealing with headaches and missed opportunities.
So, how can you improve your tenant screening? Find out as we go over some of our expert tips.
Envision Your Ideal Tenant
Obviously, no tenant will be perfect. However, having an idea of what you want from an applicant will help you during the process.
Think about your property type and its unique characteristics. What makes it stand out and what types of businesses would fit well in the area? Obviously, you want your tenants to become successful and attract lots of customers.
You want your new renter to get along with and complement the existing businesses. You should also think about what these applicants would want. You might even consider doing some upgrades to increase the asking rental price.
Create a List of Questions
Your list of questions should serve as a pre-screening process. After all, it's likely you'll receive plenty of applications that aren't quite the right fit.
Good pre-screening questions for commercial properties include asking about:
- Business type
- Credit history
- Criminal background
- Rental history
This step can help you filter out unqualified leads.
Here are a few common rental application questions to inspire you and help you create your own.
Interview Them in Person
Finding tenants for commercial properties is a long process and it involves many phases. After collecting leads and getting a few applications, you have to get the interview portion right.
We recommend meeting the lessee in person so you can get to know them and even show them the space for lease.
Ask as much about their business as you can. While you'll get plenty of information from the commercial rental application, this is your chance to ask more questions.
For instance, who is the legal business owner? What is the type of business being operated?
Determine Leasing Terms
You'll have to decide if you'd prefer a short-term lease or a long-term one.
Many commercial property owners prefer to lease their spaces out to long-term tenants as it's better for financial security. It also means you won't have to start screening tenants again after a year or two.
Whatever you choose, make sure the leasing terms are outlined upfront.
PMI Austin Makes Tenant Screening Easy
Of course, if you want to get the most out of your investment, commercial property management is the most efficient way to do so. Having a professional team on your side takes the stress away from you.
Here at PMI Austin, we offer a variety of services to make managing your property simple, including tenant screening. We'll handle everything from marketing the space and collecting leads to securing the lease agreement and more.
Take a look at our owner resources to learn more about what we can offer you and your Austin property.