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A credit tenant lease is a method of financing real estate. The landlord borrows money to finance the property and pledges as security the rents to be received from the tenant. Usually, the financing is structured as nonrecourse debt, and the lease is structured as a triple net lease.he landlord borrows money to finance the property and pledges as security the rents to be received from the tenant. Usually, the financing is structured as nonrecourse debt, and the lease is structured as a triple net lease.
Getting a credit check on a potential tenant is a common practice in California. A credit report can reveal past failures of an individual to honor financial contracts. Considering the work it takes to rent a property, it only makes sense to verify the financial responsibility of the person promising to pay rent.