As an investor in commercial property, one of the most important aspects of your business is finding the right tenants. A sound commercial lease will generally be in the best interests of both parties.
However, finding the right tenant is not as easy as it sounds. One way that you can protect your interests is by recognizing the warning signs that a prospective tenant isn’t for you. Let’s look at a couple of red flags.
Consider their past dealings
The early conversations before you commit to a contract are pivotal. These exchanges give you the opportunity to spot potential problems early on. If you notice that the prospective tenant complains about past dealings with previous landlords, it could be a warning that this tenant could cause problems. Consistent landlord-tenant disputes in the past could present a good reason to walk away from the deal.
Are they reluctant to verify who they are?
Before committing to a legally binding agreement, it is important to know who you are dealing with. Tenants need to have an income that can support their rent. This can generally be verified easily by providing relevant financial statements. If a prospective tenant is reluctant to do this, you have to ask yourself why.
To protect yourself and ensure maximum profitability, it is important to find suitable tenants. As a property owner in Texas, you are covered by a host of legal protections. Recognizing this as you move forward could help you to avoid lengthy litigation over commercial disputes.