CRE-Finance LLC Explains How To Be Careful With Commercial Real Estate Tenants

Online, April 20, 2014 (Newswire.com) - As the owner of a commercial property, you may want to lease your property carefully. You sure do not want to face any trouble with your tenant because commercial leases last a long time. To make sure you choose the right tenant here are a few tips from the mortgage professionals at CRE-Finance, which could help you, be careful when choosing a tenant:

Experience

You would want to ensure that the tenant you are going in an agreement with is experienced and credible within the marketplace and industry, in general. You want to be sure that he is going to be sustainable for your commercial property. You would want to ensure that they are well experienced in their field of business and will be able to operate it successfully in your space. They should have sound knowledge of the financials and have what it takes to survive.

Competence

The tenant you are looking for should be able to clearly talk about his business plan with you and give you answers about their target market, demographics, and competitors and so on. You must be satisfied that they are competent enough to benefit from the commercial space you are renting them and consequently pay you in time. If a prospective tenant struggles with answering these questions, you may want to reconsider your decision about choosing them.

Financials

Prospective tenants may not like to openly discuss about their financials, and this is where you need to be on the lookout. You need to make sure that your tenant has a good credit history and sound financial background to embark on the business venture with your commercial property. You do not want to be in the spot where it becomes difficult to deal with your tenant once you are in an agreement with them. To avoid any such nuisance, ensure that the tenant has the financial backing he claims he does and will be able to support his business along with paying the rent.

In a nutshell you should ensure that the tenant you choose would bring value to your commercial property and is able to show sound business and financial knowledge. This is where your people's skills will come in handy, and you must make it a point to meet your prospective tenant at least once or twice before closing the deal. Here is a checklist to help you make the right choice:

1. The tenant has good rental history
2. The tenant can successfully integrate into the existing tenant mix
3. The tenant can show business success and liability
4. A lease that compliments business profile and plans of landlord
5. A permitted use in the lease suiting the property
6. A lease that improves rental return from the property

As the owner of the commercial property, your aim is to increase your rental return from your investment. In this regard, invest and take good care of your property. Make sure to consult an experienced and professional broker before you close a deal with a prospective tenant, as a second opinion could help you to make a better decision.

If you have any questions regarding commercial real estate or are seeking financing, contact Rich or Todd Tretsky at 855-515-5585 or visit us at www.cre-finance.com.