Jacksonville is ranked as one of the top US cities to start a business, making it the perfect place to invest in commercial real estate.
If you're a commercial property owner, finding great tenants is the best way to maximize your ROI. With so many up-and-coming small businesses, you shouldn't have issues finding potential tenants for your vacancies. It's how you whittle down the selection that will make or break your investment.
Today, we'll give you some tips for successful commercial tenant screening. The more thoroughly you screen your tenants, the more confident you can be in tenant selection. Keep reading and secure the best commercial tenants in Jacksonville.
Thorough Tenant Background Check
As with residential tenants, you must always go through the rental application process and perform background checks on potential commercial tenants. The specifics of a commercial background check are slightly different, however. Instead of looking into criminal history, you'll look at the company's history to make sure they're properly registered by the state.
You'll also look at their financial history. You need a commercial tenant to have a solid credit score with no bankruptcies or current unpaid debts. In addition to looking into the company's background, you should perform checks on the business owners as well.
Inspect Business Plans
Whether you're dealing with a new or established business, you should look at their business plan. This will give you important information about the way the business is being run.
As a landlord, your main goals are to ensure that a tenant can afford rent and treat your property with respect. A business plan will detail things like the company's goals, financial plans, and daily operations. The more you can glean from a business plan, the more you'll be able to assess whether or not a tenant is a good fit for your property.
Assess Cultural and Practical Fit
Interview the top candidates to assess their viability as tenants. By speaking to them and asking the right questions, you can determine how long they'll stay in the property, how much maintenance the property will need, and the stability of the company overall.
You can also determine things like professionalism and overall suitability. The character fit of a commercial tenant is an oft-overlooked aspect of the screening process.
Clarity in the Lease Agreement
When you think you've found a great tenant, that's just the start of your job. Draw up a clear lease agreement so your tenant understands what you need from them. They should include the following information:
- Rental terms
- Restrictions on property use
- Security deposit conditions
- Maintenance expectations
- Consequences of lease violations
Taking the time to screen tenants and handing them a clear lease agreement will minimize the risks of running a commercial property.
Tenant Screening and Property Management
Tenant screening for your commercial property can be a lot of work. If you're not equipped to find the right tenant, it's worth it to hire a property manager to help. A great property manager, like PMI Jacksonville, can employ a wealth of experience and local expertise to ensure you get the best possible commercial tenant.
Our tenant verification process and screening methods are thorough and effective. Contact us today to discuss your tenant needs and get started on your search.
