I self manage a few properties and am coming upon leasing up two units.
One is 45,000 square feet, the other 2500.
I am looking for input as to whether you run:
-personal credit report
-business credit report
-request tax returns for personal and business
All of the above?
I look strongly at the lease guarantee. Someone could be worth 50 million but if they have no guarantee or a single entity remote LLC it is worthless.
You could have all that other stuff and they could simply walk away and keep running other locations of their businesses.
If they are a large corporation you want to see if they are credit rated and then if investment grade BBB- or not. Some companies have junk status for ratings meaning they are rated to have a high chance of default and failure.
You can request business financials the last 3 years to see how they have performed and how they are trending. If personal guarantee you also want to see financials to see their personal liquidity and net worth. Make sure if it is a corporation that the person signing has full authority to bind the company to the lease and you have it notarized. They need to print name clearly and then sign.