A commercial lease can be beneficial for all parties. The landlord receives regular income and the tenant gets the use of the property to conduct their business operations.
For the most part, such agreements run smoothly but this isn’t always the case. As with most issues, prevention is better than cure. It may be better for you to walk away from a prospective tenant in some cases. Outlined below are a few red flags:
1. If they are cagey about verification
As a commercial landlord, it’s important to carry out due diligence. You’ll want to verify that prospective tenants are who they say they are. This includes asking them to provide ID and possibly proof of income. This works both ways and trust is a good foundation to build any professional relationship on. If the prospective tenant makes excuses about not having ID or encourages you to bypass this process, it could be a sign that something is amiss.
2. If they try too hard to reduce the price
Everyone likes a fair deal and there may be a bit of wiggle room in terms of the price you charge for rent. Nonetheless, the prospective tenants should be able to afford the price that you advertised the property for.
If a prospective tenant is trying to haggle too much on price, it could be a sign that they simply can’t afford the property. If you enter into an agreement in these circumstances, the tenant may fall into arrears, which leaves you out of pocket.
If you’re in a dispute with a commercial tenant it’s important to protect yourself legally. Seek further guidance to find out how to resolve the issue in the most efficient way possible.