Newport Beach, CA, has more than 20,000 businesses ranging from large corporations to sole proprietorships. The city is home to thousands of people who settle for great neighborhoods and job opportunities.
For investors, this is exciting. Businesses need a place to set up shop and your commercial property could be that place.
To find the best commercial tenants, keep reading to discover tenant screening best practices.
Require a Rental Application
Requiring a commercial property rental application is an obvious tenant screening practice, but it's what you ask for that is important. A detailed rental application should gather the following information:
- Rental history
- Employment history
- Financial details
- References
Looking at their business niche can also help landlords determine if an applicant is a good fit for the property.
A property manager can check the references in an application to ensure the information provided is accurate. There are different types of applicants and not all of them are truthful.
To legally run a credit or background check in Newport Beach, you'll need consent from the applicant. You can ask for consent via the rental application.
Run a Background Check
Tenant screening should always involve a credit and criminal background check. These checks provide important insights into the potential renter's financial stability and criminal history.
A good credit score is a great sign of someone who pays their bills on time.
During your screening, you can look for green flags. Verify the applicant's employment and income. Make sure their job status from the background check is current.
A stable source of income provides you with a good idea of if they can afford the rent.
Interview Potential Renters
Commercial properties are only successful with quality tenants. After indicating the top qualities of a tenant from your application and screening process, you can interview tenants.
Before your final selection, consider interviewing with the potential renter. Meeting someone in person or through a virtual interview can tell you a lot about their professionalism and compatibility with your commercial property.
Hiring a property management company can help you vet applicants through every stage of the process.
Continuous Tenant Screening
Even after you accept a rental applicant, continuous tenant screening can help you maintain your investment. If you plan to offer a lease renewal when the first lease is up, regular screening will show changes in the tenant's financial status.
If their risk profile changes, you might reconsider offering a lease renewal. The lease renewal screening process involves many of the same steps as an upfront tenant screening process.
How Can Property Management Help?
At PMI First Choice Property, tenant screening is what we do! We offer Newport Beach, California, landlords like you with comprehensive property management services.
We will help investment property owners like you create a commercial tenant screening process that helps you find quality renters. We use state-of-the-art technology and screening practices that are unmatched in the local area.
For more than 19 years, we've offered industry-leading solutions for property owners. Our number one priority is to maximize your profitability, so let's get started! Contact us now for more information.
