New tenants want to rent a commercial space

2 Replies

What questions/documents should I ask/request from a new commercial renter before they sign the lease and move in? They are looking to do a sandwich/coffee shop cafe in my 2100sqft commercial space? This will be a new business venture.

Start-ups are risky.  And, commercial tenants are known to be late payers - known as "slowing payables" that can wreck havoc on your cash flow.  One of the best things you can do to shore up the financial reality of a big dream that comes with entrepreneurship is to ask questions about  their business plan and resources to determine if they've thinking/operating from sound fiscal position.  There's a reason why a lot of landlords won't talk to a new business; here's an article that provides some questions a landlord should pose at a minimum:

Next, be sure you know your rights under Commercial Tenancies and make sure your lease gives you every protection. Review these with the tenant so that it's clear that you're operating a business and payment is expected on the due date without excuse or explanation - as well as the consequences for failure to pay that would follow.

Helping a start-up see that a venture without a business plan and adequate funding is nothing more than a dream can help you secure a better qualified tenant while avoiding a costly mistake.