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Tenant Referencing

Tenant Referencing

 

I. Overview

A commercial tenancy is very different to a residential one, they are for longer terms and unless otherwise arranged a commercial tenant, will be fully responsible for the use, maintenance and repair of the demised area of the property. It is therefore important to fully reference a tenant before allowing them access to your property.

The whole purpose of referencing a tenant is:

  • To confirm the tenant’s identity
  • To ensure they are legitimate business
  • To confirm the covenant strength of the business or individual.
  • To ensure they can meet the purchase commitments.
  • Reduce risk to your property and income

When reviewing a prospective commercial tenant it is essential you obtain as much information as possible on the person or business. This allows you to make an informed decision before progressing to the point where you instruct solicitors and incur costs. You will save both time and money by undertaking these reference checks in advance yourself.

Before we explain how and what references to take, we will explain the professional guidelines a professional agent will use. We then will explain how you can carry out the same level of tenant referencing and understand the information received.

Unless for inspection purposes, do not give access to the property until your solicitor has confirmed that the letting or sale has completed. Be wary of tenants trying to secure access or use of the premises without giving you time to carry out the advisable reference checks mentioned within this document. If you are unsure about a tenant think twice, ask further questions.

Contact Virtual Commercial or your solicitor if you are unsure of anything.

 

II. Professional Guidelines

Professional guidelines suggest that the following references below are obtained. Agents are obliged to inform client of all results and to send copies of the references.

The ultimate decision to accept the tenant is always left to the Landlord or client.

References for an individual:

  • Bank/credit references
  • Previous/present landlord

The remainder of this document is available to customers who have purchased a Virtual Commercial Package.

Tenant Referencing
2016-05-09 22:28:29

Tenant Referencing.pdf