I am looking for guidance in screening a tenant for a commercial property. They are non profit medical practice. Do I screen the tenant or the business?
[{"id": "gviedv0", "text": "Review their financials and you could have your attorney run a Lexis Nexis search for lawsuits. If they are too weak, ask for a personal guarantee or de-leaver the situation by delivering on an AsIs basis with no TIA", "replies": [{"id": "gw4w4rx", "text": "users with illegal uses don't mind taking the property \"as-is\". They install solar panels and upgrade the security for their business any way.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gvigs2g", "text": "The financials reviewed (ideally three years audited P&amp;L and income statements) need to be in the name of the entity signing the lease.  Same entity needs to be in good standing (where I am, that's public record available online for free).  If there's a discrepancy between the financials reported and the entity signing the lease (which is not uncommon), get a personal or corporate guarantee as a backstop.", "replies": [{"id": "gviguwa", "text": "How do I get a personal guarantee? Also what if they have multiple locations??", "replies": [{"id": "gvih8p8", "text": "It's written into the lease, usually as an amendment.  It basically says that if the entity signing the lease (usually an LLC) fails, LL has the right to go after personal assets.  It is signed by the individual (usually the owner/principal), and will include an address....get the HOME address if you can, not a PO box or the location of the lease.  Not necessarily to go after the person's house, but as a place to have legal docs served.  And to freak them out into not defaulting...", "replies": [{"id": "gviukgk", "text": "I'd add you may want to try for which ever individual in the company has the highest net worth.\n\nBut like you said the PG usually ensures they won't just walk out of the lease on you. \n\nBesides financials ask why they are moving, how long have they been in business, where there current location is, is this an expansion or are they downsizing? Current LL reference? \n\nI am generally on the landlord's side of things as a broker. I will hit almost all those questions the first time I meet the prospect I just don't ask them that directly.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gw4vy4h", "text": "Do a credit/background check. I like to have them sign personally rather than in the company name. If they persist in signing in the company name, I have them sign a personal guaranty. 2-3 years tax returns, 3 months bank statements, copy of ID of applicant and application. Check out their current business. You could get unlucky and end up having an illegal dispensary or gambling ring. \n\nBest advice...hire a broker to assist you with this. Not sure why you would try to do this on your own with zero experience.", "replies": [], "depth": 1}]