Finding the right tenant is one of the most important elements of a successful commercial property investment. While a good tenant is a great asset to your property, the wrong tenant can be disastrous. A bad tenant may not look after the place, could cause damage, be difficult to deal with and might break their lease or not pay their rent. This can be stressful and costly to the landlord so it’s always worth taking the time to find the right person.
Unfortunately, bad tenants don’t usually come with a sign across their foreheads but there are a few red flags that might indicate your prospective tenant could be more trouble than they are worth.
Here are our top four warning signs that you shouldn’t lease your commercial property to a tenant:
- They haggle over everything. If a potential tenant starts haggling over every little detail, from the rent to the bond it is a sign that at the very least they are going to be difficult to deal with. At worst it may mean they can’t afford to pay the rent and may go into arrears.
- They can’t prove their income. If they are reluctant to hand over their financial details or anything seems sketchy there it’s probably because it is. Don’t lease your property to anyone if they can’t prove they can afford the rent, no matter how persuasive or confident they might appear to be.
- They try to railroad you into skipping the verification process: A tenant who is in a huge rush or gets angry at the time it will take you to complete all the necessary background checks could be trying to hide something. While you might be anxious to find a tenant for your commercial property don’t risk cutting corners when it comes to thoroughly checking them out.
- They complain constantly about all their past landlords. While most of us have a hard luck story or two, if a potential tenant claims to have had a terrible time with every single one of their previous landlords, you need to think about who the common denominator is – chances are you will be their next hard done by story and do you really need that?
Take some time to find the right tenant for your commercial property and you can save time and money over the long term. It’s often a good idea to speak to a professional property manager – they are experienced at finding tenants and can generally spot the warning signs.