Potential tenant offers to pay 6 months in advance - retail strip
Hi BP,
We manage a commercial retail outside of Houston and since right before Covid-19 until now there is this couple (looks like a boyfriend and girl friend) has been expressing interest in leasing 1 of our units for a Thai massage. At first we turned them down because we were in the middle of negotiating with another potential tenant (Mexican restaurant) for the same unit. Then Covid-19 hit and that potential restaurant tenant has been on a hold and wait mode and still not signing anything with us yet. Now this Thai massage couple (the guy is a well-known litigation lawyer specializes in employment law who will be a silent partner) reaches out to us again saying they are still very interested in leasing our space. They don't have any problems with our rent rate, and now even offer to pay '6 months rent in advance upon completion of build out'.
My questions are:
1. I know on residential side we have rules around accepting rent in advance that make things a little more tricky. But this is commercial and we are still new so I am not sure if the same rules apply in term of accepting rent in advance? Or since everything is negotiable in commercial and if tenant offers we can accept it without any issues?
2. Like I said, he is a well-know litigation employment lawyer. Any of you guys see any potential issues in leasing out to a lawyer? (even though he said he is going to be a 'silent partner' but so far he has been the only one who communicates with us).
Thanks in advance for any advices/feedbacks.