Are you ready to lease out commercial real estate in Denver? A commercial property is a sound financial investment—that is, if you choose trustworthy, reliable tenants that will maintain your property well for the duration of their lease. How should you choose a tenant that will help you protect your investment? Follow these tips:
Confirm their references.
Many landlords ask for references, but then never check into whether they are valid, which is a big mistake. Ask tenants for both character and landlord references so you can learn more about who the tenant is as a person and how they behave in others’ property. Other landlords should be able to tell you how timely the tenant was with paying rent, the condition of the property after the tenant moved out, and if there were any complaints from other people while the tenant was living in the property. Learn how to check tenant references
Look for consistency.
Ask each of the potential tenants to provide a history of their previous business addresses. How often did they pick up and move their business from one location to the next? If they have operated from multiple addresses within the last few years, make sure to ask for more information on why this happened. It could have occurred for completely legitimate reasons—for example, if the business was quickly outgrowing their current space—however, if they can’t provide a sound reason, this is a sign there was trouble at their previous location.
Determine if the business is a good fit.
What kind of business does the tenant operate? You should try to choose a business that will be a good addition to the area, instead of one that doesn’t quite fit with the current customer base. Remember, even though it’s not your business, you should still want your tenant to be profitable otherwise your rent could be in jeopardy.
If the tenant’s business may ruffle some feathers, for example, if it’s a smoke shop, then you may want to check with other landlords in the area and see if they’re fine with this tenant moving in. It’s best to stay on good terms with other landlords and businesses in the area if you plan on keeping your property for a long time.
Will the tenant need you to make any modifications to your property in order to do business? For example, if you are renting space out to an exercise studio, you may need to change the flooring and add in a wall of mirrors to make your space work for the tenant. However, if you do not want to make any changes—and don’t want to allow the tenant to do so, either—then this would not be a good fit.
Do you need help finding tenants for your commercial property in Denver? Contact Denver commercial real estate
experts at The Sherman Agency to learn about the various services we offer! Call 303-572-8778 to speak to a member of our team today!