It is difficult to assess the full impact on the commercial market, created by the Covid-19 interruption. However, it is predictable that there will be substantial increases for subleasing and assignments, particularly in the office market. With the spread of Covid-19, brought the shift to work from home, leading certain departments to operate remotely with productivity success. Tenants are now exploring downsizing current space through assignments and sublets.
With the negative financial impact on many tenants, it is important to ensure that the tenant remains viable when authorizing assignments or sublets. Credit reporting designed for the property management industry is important for the current tenant who will remain responsible under the lease as well as the assignee or sub-tenant. Depending on exactly what the lease stipulates the landlord usually has the authority to approve both assignments and sublets and therefore, also has the control to ensure that all parties, including current tenant, assignee or sub-tenant are capable of satisfying the lease terms.
By using comprehensive credit reporting, you can be sure you are selecting the right tenants, protecting your investment, maximizing return on property and reducing risk.
One of the best ways to do this is to review your tenants thoroughly, to help you identify:
In any of these situations, choosing the right tenant will:
Ultimately, effective tenant screening ensures that your investment is as lucrative as possible and that your financial non-monetary resources are being used effectively. Instead of using your resources to settle disputes or prepare your property for new tenants, you can reinvest in your company and continue to grow.