What questions to ask the prospective licensee before closing the deal ?

Did you do this before closing the deal with your tenant?

As a Landlords you need to pick good tenants for a trouble-free rental experience. It’s important for both new and experienced landlords to understand the importance of screening the tenants properly.

Here’s what you need to ask prospective tenants to do their background check and make sure you find the right tenants who not only pay their rent on time but also take care of your property.

Financial Capability: It is important to assess whether the prospect will be comfortably able to afford the monthly rent and also pay it in time. For public limited company, all its financials are available freely in the public domain but for private limited companies such records are not publicly available. Comment Tell me How to receive a guide on how to access financials of a Pvt Ltd company without asking them for it.

Rental History: It is perfectly fine to take references of previous landlords and check for their payment history and other generic transaction related details.

Law and Compliance: Perform a background check to verify that the prospective tenant has no criminal history or any record of violation of government compliances and norms.

Commercial Terms: Avoid dealing with prospects who try to cut corners in security deposit and other standard terms and offer a one sided deal. Only a deal which is a win-win for both the parties is likely to be a one in which both the parties share a good tenant-landlord relationship in the long run.

Trust Your Instincts: If something feels off during the screening process, consider it seriously. Your intuition can sometimes alert you to potential problems.

Consider working with experienced Commercial Real Estate Professionals who have experience in understanding tenant behaviour and can help you ward off a potential threat before you sign off and enter into an agreement.

Follow us and watch the next video to know how to check the financial documents of any company and screen them for their financial affordability.

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Selecting the right tenants is crucial for a hassle-free rental experience. Whether you’re a seasoned landlord or just starting out, understanding the significance of thorough tenant screening is paramount. Here’s a guide to help you make informed decisions and ensure you find tenants who not only pay rent on time but also take good care of your property.

1. Financial Capability : Assessing a prospect’s ability to comfortably afford and timely pay rent is key. While financials of public limited companies are publicly available, accessing those of private limited companies may pose a challenge. Learn how to navigate this without directly requesting the information. Follow me and watch-out for the next blog to learn how to access all the financial details of a pvt ltd company and screen them for financial affordability.

2. Rental History : Taking references from previous landlords allows you to gauge payment history and other transaction-related details.

3. Law and Compliance : Perform a background check to ensure prospective tenants have a clean record with no criminal history or violations of government norms.

4. Commercial Terms : Avoid one-sided deals and prefer terms that are mutually beneficial. A win-win situation fosters a positive, long-term tenant-landlord relationship.

5. Trust Your Instincts : If something feels off during the screening process, take it seriously. Your intuition can be a valuable ally in identifying potential issues.

6. Seek Professional Advice : Consider working with experienced Commercial Real Estate Professionals. Their insights into tenant behaviour and experience in dealing with various clients can help you spot potential threats before finalizing the deal.

Follow us for more tips, and watch-out for our next blog to learn how to check the financial documents of any company and screen them for financial affordability.

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