Commercial Tenant Screening FAQs

• Take professional photos that show the best features of the residential property which may include aerial drone photography or virtual 3D and 2D floor plans. We organize our photos in a way that allows us to communicate a story about your commercial property. Better pictures and a complete listing description attracts better tenants.

• Post the property listing to all relevant websites. For commercial leasing we post to Loopnet, Costar, Crexi, the MLS, City Feet and many, many more. We want as many eyeballs as possible on your listing.

• Review applicants that apply and invite only qualified applicants to view the property. Property tours that we host are always attended by a property manager or employee of Realicore.

• Meet with qualified applicants at the property tour and verify information on their application. Is the potential applicant organized? Do they have their business financials in order? What is the prior experience leasing a commercial property? Did they arrive late to the showing or were they disrespectful? These are some of the questions that our property managers are trained to ask so that we ensure the highest possibility of finding a reliable and business savvy tenant to take care of your property. We look for tenants with successful business models so that they continue to pay our property owner clients rent.

• Once we find a tenant that meets all our requirements, we will schedule an appointment with the tenant to collect any final information including the agreed upon move-in rent, their deposit, CAM fees and any other applicable fees. We require all tenants to keep active general liability insurance with our clients listed as additionally insured.

• If the contract requires the landlord to complete any tenant improvements, we can help to project manage those tenant improvements in most cases.

• We will then complete a move-in inspection with the tenant so that the current condition of the property is agreed upon by all parties. If everything looks good, we hand over the keys and the tenant can start working on opening their business!

• From here, the tenant can communicate with us through our online portal which includes creating maintenance tickets, reviewing their lease, turning on utilities and much more.

• The applicant’s business must already be operating or have proof of funds that showcase ability to pay rent.

• We require a business plan from all applicants.

• We require a balance sheet as well as a profit and loss for the business.

• 650+ Credit Score

• 2.75x to 3x Rent as Income or Revenue

• No Criminal or Eviction History

• At least 2 Referrals (Current Landlord, Banking Relationship, or Vendor)

• We require out tenants to be in good standing with any government organizations that are needed to allow their business to run.

• Certain properties may have different requirements.

• We verify income by reviewing pay stubs, bank statements and even tax returns if necessary.

• We will ask for the company’s balance sheet and profit and loss.

• We will request the company’s business plan on how they plan to remain profitable so they can continue to pay rent.

• We require 2.75 to 3 times rent as revenue from their business to showcase their capability to pay rent. In certain cases for a start-up businesses we will accept several months of bank statements to ensure they have enough capital to pay rent.  

• We complete a full background check including criminal convictions, past evictions, and Megan’s Law database. We do not rent to anyone that shows up on any of these lists. No exceptions.

• We complete a credit check and confirm that the potential tenant has 100% on-time payments for the last 2-3 years at a minimum. We typically require a credit score of 650 or more depending on the property and its location.

• When the potential tenant shows up to view the property, we look for inaccuracies in the application they submitted. We also observe how they treat the property and how they treat the property manager while they tour the commercial property.

• If the applicant has met our requirements up to this point, then we will confirm their requested move-in date is within a reasonable time frame and then call their referrals.

• Does the tenant’s business require them to have any hazardous materials on site? If so, we will confirm that they are aware of all EPA recommendations regarding the storage and disposal of said hazardous materials. If this requires additional insurance, we will request the insurance from the tenant before approving them to move into the property.

• We call the potential tenant’s previous or current landlord referral to ensure that they paid rent on time and treated the property with respect.

• We call the potential tenant’s banking relationship to ensure they are in good standing with their bank as well as any vendors they do business with to ensure they pay their bills on time.

• If a tenant checks all the above boxes and there are no red flags, we will work towards moving that tenant into the property.

• Rent is due by the 1st of each month and if rent is not paid by the 5th, then it is considered late by the 6th. The tenant is automatically charged a late fee to their account. Once rent plus the late fee is collected the late fee goes to our landlord client.

• If a tenant hasn’t paid rent plus their late fee by the 7th our property manager or leasing agent will then deliver a legal 3 Day Notice to Pay Rent or Quit to them personally or post to their door if they are not at the commercial property.

• If the tenant is not communicating, we will usually try to reach them one more time by phone before starting the eviction process.

• We have found that sticking to a strict rent collection and eviction process is in the best interest of the property owner and their property. We are very clear each step of the way with tenants regarding the risk to their credit and eviction record if they do not comply according to the lease agreement they signed.

• Eviction is a last resort action that we take when a tenant has either stopped paying rent, communication is no longer possible, or the tenant is breaking a serious clause of their lease that either puts the property or others’ safety at risk.

• Once we have determined that an eviction is the best course of action, we will contact an eviction attorney and get started on the process. Typically, an eviction attorney requires a 3 Day Notice to Pay Rent or Quit to start the eviction process with the courts.

• Tenants have a chance to contest an eviction if they feel is it not a legal eviction. In situations where a tenant has contested an eviction, the eviction costs will typically skyrocket as you will now need to pay the eviction attorney additional money to file more paperwork and show up to court to defend your case. If your property manager is required to provide prelitigation assistance to the attorney or show up to court to defend the eviction that is typically an additional cost as well. Contested evictions typically take 90 days from start to finish depending on the court’s capacity.

• If the eviction goes uncontested you can typically complete an eviction in 60 days without having to defend your case in court.

• Once the court grants judgement in favor of the landlord, it typically takes 1 to 2 weeks for the county sheriff to come out to the property, remove any occupants and watch as you secure the premises.

• Our goal is to avoid an eviction by doing a lot of the groundwork up front by finding a great qualified tenant who respects your property.

• When a tenant’s lease is 60 to 120 days from expiring, we will reach out to the tenant to see if they want to renew their lease.

• If the tenant wants to renew, we will schedule an inspection of the property to ensure that the condition of the property is acceptable as well as ensure that other clauses of the lease is being followed. If the lease is not being followed, they will be given proper notice and a timeframe in which to fix the issues.

• If the lease issues are resolved and the property has been kept in good condition, we can move forward with renewing their lease.

• Using our access to state-wide rental comparable data, a property manager will check what market rents are for the property and will decide how much to increase rent based on those lease comparables.

• If the tenant agrees to the price increase, we will lease to the tenant for another year or multiple years.

• If the tenant does not agree to the price increase, they will typically be given 60 days to vacate the property and leave it in the same condition they received it in minus normal wear and tear to receive their deposit back.