This is a transcript of an episode of the LeaseSmart Podcast.
Craig: This week I want to talk about Tenant Qualifications. I really want to make this clear.
Landlords need to know that their tenant is going to be able to pay the rent. Their biggest fear is that the tenant will fail, and that all this time, trouble, incentives, build out, leasing fees and legal fees are going to be wasted. It’s very fair for a landlord to ask a tenant “Tell me more about your business plan. Tell me more about your experience. Show me your financial statement.”
The more money you have, the more assets you have in the bank, the bigger the company you are, the more incentives you’re going to get. So, if you’re a tenant who just doesn’t have any assets or experience, you may be asking a lot to be renting certain types of space. We need to let the landlords know upfront. Here’s what the situation is and we need to structure a deal where the landlord isn’t investing a lot of assets into that deal.
Let’s be realistic and prepare some documentation or bring in some partners in advance, but just realizing that not all landlords are desperate to rent to anybody. You need to have your ducks in a row before the process gets started and it will make things go much smoother. Show the landlord some assets and experience. Of course business owners believe in their own plan, and I’m sorry to be the one to say it: The landlord will need more proof.
The point is that landlords have a right to make sure you’re going to be successful. Be prepared for that and get your ducks in a row.