Obviously as a Commercial Landlord it is in your best interests to be quite choosy about who you take on as a tenant.
As a longstanding Company who has helped countless Commercial Landlords over the years, Revenue Services Ltd are aware of the problems which can arise, the “qualities” you should look for in your tenants, and the various checks you may wish to perform before entering into a lease agreement with any tenant, to lessen the chance of problematic tenants in the future:
1. Credit history Is their credit history sound? Are you able to look into their business background and gain some idea as to whether their finances are healthy or not? Are there any areas of concern, such as outstanding loans, late payment of bills etc. Is the Company well established or is it a relatively new business, which may increase your risk?
2. Limited Company Is the potential tenant part of a Limited Company, and if so, who are the Directors? This can be checked easily and for free on Companies House and is well worth doing as it could give you vital information as to their situation. You made decide from the information gathered that it would be prudent to ask for a rent deposit, or a guarantor for the tenant.
3. Business Plan It is advisable to obtain a business plan. Speaking to your potential tenant about their future plans means that you will have some idea of what their plans are in terms of the growth of their business, how stable they are financially and whether they are involved in a business that could be deemed “high risk”
4. Insurance This is very important. Not only do you have to ensure that you are properly covered, but you should ensure that your tenant is also covered by Public Liability Insurance. This ensures that their business is adequately insured and protected which in turn will help to protect your interests and investment in the property.