As a landlord, it is your right to question those who are inquiring in your business or even those checking out the space. Screening tenants before choosing them to stay in your building is a fundamental step in making sure that they are responsible, can be trusted, and have plans to stay for long.
The ideal tenant is not just about them having the best personalities, what you also need to make sure is that they have steady income streams, have a good credit score, and have clean eviction reports. As the owner, you have the ability to lower or increase the rents, and tenants that can afford your rates with above qualities deserve to be chosen.
Busy is an understatement for business owners. Before a pool of applicants comes knocking on your door, calling or messaging you nonstop, make sure to save your time by setting expectations upfront. Post on your social media or rental ads your leasing criteria so people themselves know if they are fit to your qualifications.
For renters of homes and/or apartments, you may want to ask for specific documents. Here’s a list of the things you can ask them before even initiating a formal interview:
1.Canadian Valid ID [Driwing License]
2. Latest Equifax Credit Report with Credit Score
3. Latest 3 Pay Slips
4. Last 3 Months Bank Statement as pdf file with their Name
5. Letter of Employment with Annual Salary Package / Letter from Accountant with Annual Income [t4A]
6. Current Employment references [immediate Supervisor/Collegue name & cell number]
7. Current Landlord Reference [name of Landlord & his cell number
When you open your commercial establishments to renters, financial viability is first and foremost. It is important to consider how your potential renters make up for their business. How long have they been in the business? If they are established for years, you might ask to see the business’s financial history to confirm that it is a viable business more than able to pay the rental amount.
If they are start-ups you may want to check this list and make sure to include these questions when you are about to interview interested renters:
- As a startup business, do you have a base of capital that you will be working from that will guarantee your lease?
- As a startup would you be willing to have a cosigner on the lease.
- Also the landlord should ask for a personal guarantee if the start-up or established business is a Corp or Ltd.
After determining financial viability (this is also applicable to ask to long-standing businesses wanting to rent your space):
- Ask questions regarding possession: how long, when, will you require an option to renew?
- Will you need time to set up for the business; if so how much? 1, 2 or 3 months? Such as painting, minor construction, decorating.
- Do you understand that any changes will require landlord approval?
- Will retrofitting of any kind be required? Changes to the property to meet specific codes and/or regulations. Entrances and exits. What about Bathrooms, special needs. And who will pay for it.
- What will be hours of operation?
- Does the business meet the zoning bylaws and is it a legal business?
- If there are common spaces with other tenants, will the tenant abide by the landlord’s policies regarding usage?
Leave a Reply