A landlord handling any type of property (i.e. commercial, residential, or mixed) has to remain objective when screening tenants to avoid the possibility of a discrimination suit.
The best way to maneuver this is to use the same application process for every prospective tenant with the same questions for the same type of property.
For example, a landlord's questionnaire for a tenant looking to lease retail space would be the same as any other business tenant looking to rent the same space, but that questionnaire might differ from the one they'd give to an applicant looking for an apartment or condo.
The information landlords typically look for on a Commercial Lease Application include:
- Business information: the business name, intended use of premises, and company structure (sole proprietorship, partnership, etc.)
- Current and previous property information (if applicable): address, monthly payment, and landlord's name and contact information
- Business owner/partner/stockholder information: names and contact information
- Banking information: the tenant's banking institution's name, address, and phone number
- Credit references: industry references (the names and numbers of companies or individuals from whom a tenant makes purchases with credit accounts)
- Credit check authorization: permission to perform a credit check
Typically, a landlord will pursue a lease agreement with the first qualified tenant who meets the criteria of their application and whose business suits the property.
For example, a clothing retailer with great credit leasing space in a shopping mall is a more appropriate tenant than a mechanic looking to open a collision repair shop in the same space.
Keep in mind the criteria can be significantly more extensive for commercial applicants than for residential tenants because the application process can involve requesting formal Offer to Lease letters, conducting background and credit checks, reviewing references and business reports, conducting interviews, and even examining business plans or financial statements.