Do You Do Commercial Background Checks? Can You Upcharge Them?
Hello all again. 

I’m trying to turn around a mainly vacant shopping center. 

The two tenants that are still in there are small mom n pop guys that pay rent basically when they feel like it. 

I don’t kick them out yet bc some money is better than none, and they at least watch over the property when I’m not there (i.e. prevent vandalism). 

When I begin to lease this place out, can I legally demand criminal background checks, LLC credit check, Personal Credit Checks? Can I deny a lease based off criminal record?? I plan on discussing with a lawyer but for now I want to hear what you all have to say. 

I also was thinking of adding an “administration / processing / office” fee to the background checks for me having to process it all + make some extra money. Is this legal? I feel like I’ve read somewhere long ago that this is not allowed. 

Been searching the internet for about an hour and can’t find anything tho. 

Comment your experiences / advice! Thank you 🙏
[{"id": "isja8sh", "text": "It\u2019s really a better question for your PM, attorney or leasing broker. \n\nThe short answer, in commercial you can and charge for whatever you want. Just don\u2019t discriminate against a state or federally protected class.", "replies": [{"id": "isjd33d", "text": "Leasing broker is a family friend and pretty useless.\n\nI made a post about him a week or two ago. I\u2019m pretty much figuring it all out by myself. \n\nI plan on discussing everything with an attorney. In the time being tho, you know how it is, just want to talk to someone about it or hear what others have to say to calm the overthinking in my head. \n\nThank you for your insight! That\u2019s about what I thought!", "replies": [{"id": "iskr3ss", "text": "Fire your leasing broker. Are they\u2026 i dare ask\u2026 a Realtor?\n\nA good commercial broker will answer all of these questions and make the whole process much easier for you. A great one will also get you higher prices.", "replies": [{"id": "ism6s3h", "text": "Lmao yes they are primarily a realtor that is now dipping into commercial.\n\nI\u2019m giving him a chance for now and we\u2019re both basically learning as we go. \n\nIf we don\u2019t get spaces leased out within 6 months I\u2019ll find someone else. \n\nMost people I contact tho seem uninterested or don\u2019t get back to me until 2-3 weeks later.\n\nThis guy at least responds same day.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "isjqziq", "text": "Screening for commercial Tenants:\n\n1. Require three years of personal tax returns for all Members of the business entity.\n2. If it's an existing business with locations, require three years of business tax returns.\n3. Require three years of Profit/Loss reports.\n4. Require at least six months of personal and business bank statements.  Original bank statements not \"online version\".\n\nYou can run background checks on anyone.  It is not illegal.  Have a commercial lease application where each application fills out their information and signs it to confirm it is correct.  There are several sites that perform background checks.  I would not charge them for it, that is part if your due diligence in selecting commercial Tenants.  This isn't residential.  It's commercial.  Earning $50 more for running a credit check doesn't show well or professional.  More often than not the tax returns are what you want to focus on along with existing PL reports.  GL.\n\nThat said, considering the questions you are asking I strongly recommend you seek the guidance of a Landlord/Tenant attorney in your area.", "replies": [{"id": "ism7vuv", "text": "All very good advice. \n\nMy problem is with this being in a tertiary market in a very low population village, I don\u2019t know if I can be that choosy. I also don\u2019t know how many decently credible tenants I\u2019ll be able to get. \n\nI\u2019m going into this fully assuming I will lease to the worst possible tenants, as only they would be interested in leasing in a vacant center, and as it fills up, I\u2019ll be able to attract more stand up people. Might take 2-3 years before it\u2019s attractive enough for nice, well to do people. \n\nI haven\u2019t put it on the market yet so I guess we\u2019ll never know for sure until it goes live. \n\nYou brought up many great points that I will for sure discuss with a lawyer. Thank you for taking the time to write that. I appreciate it so much \ud83d\ude4f", "replies": [], "depth": 2}], "depth": 1}, {"id": "iskj5ec", "text": "I use rentspree to run credit. It also allows you to do a criminal background check and eviction check. The prospective tenant pays for it. If you are concerned about making money off of credit checks, it is my opinion that you are focused on the wrong thing.\n\nIf it comes up that they have a criminal record, I certainly wouldn't tell them that is the reason I wasn't leasing them the space. \n\nThis isn't legal advice.", "replies": [{"id": "ism83pn", "text": "Thank you for sharing your sources! I appreciate you \ud83d\ude4f", "replies": [], "depth": 2}], "depth": 1}]