In the past, we’ve discussed some effective strategies landlords can rely on to avoid nightmare tenants. One such strategy that deserves a little more attention is commercial tenant credit checking. Running a tenant credit scan is generally one of the last steps in the screening process, but it is no less critical.
Continue reading to learn some valuable tips on running commercial tenant credit checks to better protect yourself against tenancy fraud, unqualified applicants, late payments, and more.
The Importance of Commercial Tenant Credit Checks
As a commercial landlord, your office building or strip mall is important, as it has a lot of earning potential. Not only do you want your available spaces leased as soon as possible and for as long as possible, but more importantly, you want good, dependable tenants. Commercial tenant credit checks can be the best armory against things like tenant fraud, rental loss, and poor application submissions. In fact, tenant credit scans are designed to specifically avoid and prevent these situations and more.
Tenant Credit Scans Can…
☑ Protect Against Tenant Fraud
☑ Verify Tenant Qualifications
☑ Increase Control for Timely Payments
Tenant credit checks will reveal a lot about an applicant’s payment history and habits, including income, assets, credit lines, financial delinquencies, excessive extensions of credit, defaulted payments, ordered restitution, tax penalties, and more. Basically, a tenant credit scan should tell you enough information to make an informed and secure decision on an applicant’s capabilities to pay their rent on time and without causing any trouble.
Tips for Running a Tenant Credit Scan
▶ Double check your information. When commencing a commercial tenant credit check, it is critical that you get their name and information correct. After all, you would want to ensure that you are running the credit scan on the right person. Avoid entering incorrect data about your applicant by making a copy of their photo identification, which can be a driver’s license, state ID, or passport. With their photo identification in hand, be sure to confirm with them their address, date of birth, and full name.
▶ Use an authorized credit reporting agency. There are thousands of credit scanning websites to choose from, but not all of them are created equal. Be sure you use a certified credit check screening service. Recommended agencies include Equifax, Experian, and TransUnion.
▶ Interpret credit report results sensibly. Credit report results can be confusing sometimes, especially if they involve international or legal matters. So, it is encouraged to hire a lawyer to help you understand what you’re looking at. Look for red flags, like financial delinquencies and history of non-payments. If the applicant provided incorrect data with the intention to conceal points on the report that could work against them, this is a red flag that they are not a wise choice as a tenant.
Are you a commercial landlord or tenant who wishes to improve the look, function, and overall success of your business? Contact BAF Corporation at 317-253-0531 to speak with an expert Indianapolis commercial general contractor about your options for tenant improvement remodeling and more. We serve clients in all industries and throughout all of Central Indiana.
Related Posts:
General Tenant Improvements for Commercial Properties
How to Attract More Tenants to Lease Your Rental Property
How to Find a Qualified Tenant Improvement Contractor
Top Building Remodels That Will Entice New Commercial Tenants
