Commercial Lease Application Form

A Commercial Lease Application is a document a landlord or property manager uses to screen applicants for a commercial rental property (in contrast to applications for leases of residential properties like apartment units).

The occupants of commercial properties use the space for income-generating activities rather than residential purposes.

Table of Contents

• What is a Commercial Lease Application?
• When to Use a Commercial Rental Application?
• How to Approve or Decline a Commercial Lease Agreement
• What Can a Landlord Ask on a Commercial Lease Application
• How to Write a Commercial Lease Application Form
• Commercial Lease Application Sample
• Frequently Asked Questions

What is a Commercial Lease Application?

A commercial lease application helps the landlord or property manager screen a business to see if it fits the property well. Applications for commercial leases also give insight into a business’ financials and rental history, which helps the landlord minimize risk.

The four main categories of commercial real estate are:

• Retail space (including shopping and restaurant retail space for rent)
• Industrial buildings
• Office rental
• Multi-family housing complexes (not to be confused with a residential lease to rent an apartment unit)

However, commercial properties can be nearly any building or land used for business-related functions.

When commercial property owners want to rent out their space, they typically have a potential tenant fill out a simple commercial lease application.

Other names for a commercial lease application include:

• Commercial tenant information form
• Commercial rental application
• Retail lease application
• Business rental application form

When to Use a Commercial Rental Application?

Commercial real estate owners should use a commercial lease application to evaluate potential tenants for rentals of their properties intended to conduct business.

A landlord usually asks a business entity’s representative or owner to fill out an application to lease commercial space before signing a commercial lease agreement.

Landlords of a commercial space include those who own:

• Strip malls
• High-rise buildings
• Factories
• Warehouses
• Shopping malls
• Retail kiosks
• Stand-alone commercial properties
• And many other types of real estate zoned for commercial use

A commercial landlord should screen all potential tenants before leasing space for any time.

Screening also helps landlords better understand the prospective tenant and the business (and its principals or representatives) and determine whether they will add value to a property.

Typical commercial leases applicants include:

• Retail businesses
• Childcare facilities
• Hotels, motels, and inns
• Accounting, law, and other professional offices
• Service providers
• Restaurants
• Auto-body repair shops
• Shipping companies
• Businesses with administrative functions
• Manufacturing companies

If you want to rent space in your commercial property and desire a tenant who will add value to your real estate business, screen all applicants for commercial leases with an attorney-created application.

Why Use a Commercial Lease Application?

Landlords must determine if a tenant is a good business investment, so they should collect pertinent information using a commercial lease application.

Properly drafted applications for commercial leases provide much of the data a property owner needs to evaluate and decide who to rent space to.

You can use a retail lease application to verify a business’s creditworthiness and determine if a potential tenant will likely operate successfully in space.

You can decide on your property’s occupancy with a well-drafted commercial lease agreement.

How to Approve or Decline a Commercial Lease Agreement

Once you approve a commercial lease application, it is best to notify the applicant promptly, and you can do so with an application approval letter.

It is also a good idea to send a commercial lease agreement to the prospective tenant after you approve the application. 

You may decline a commercial lease application for several reasons, including the applicant’s credit history, income, or rental history.

If you deny the application because of information on the applicant’s background check, you must advise of the reason for your denial per the Fair Credit Reporting Act (FCRA).

You should send a rejection letter with the reasons for the denial to all applicants you decline.

You must also tell the tenant if you take an adverse action due to the applicant’s background check.

Examples of adverse action include:

• Declining the commercial lease application
• Requesting a higher deposit
• Raising the rent amount
• Requesting a co-signer on the lease
• Adding a deposit that is not required for other applicants 

Some states have additional commercial lease approval and denial requirements, so it is best to know state and federal laws before you begin the lease application process.

A business rental application should give you the necessary information to screen the prospective tenant and determine risk.

These are the steps to screen a commercial rental applicant:

• Step 1 – Use our step-by-step builder to create a commercial real estate application
• Step 2 – Have the applicant fill out, sign, and date the form (business name, details, and financial information)
• Step 3 – Collect a commercial lease application fee (if applicable)
• Step 3 – Review the prospective tenant’s information
• Step 4 – Verify the business with the appropriate Secretary of State if relevant (see table below for resources)
• Step 5 – Obtain the business’ credit score and the company owner’s or principal’s credit score (if applicable)
• Step 6 – Perform background checks on the business owners or principals
• Step 7 – Contact the applicant’s references and check the rental history
• Step 8 – Review the company’s assets and financial statements
• Step 9 – Review any guarantor’s information
• Step 10 – Approve or decline the applicant

If you approve an applicant, the next step is to send the business owner or principal a commercial lease agreement.

Send a tenant rejection letter to any applicants you decline. This declination letter should clearly state the reason for denial to help protect you if the applicant claims discrimination and because it is a courteous business practice.

Secretary of State Offices

The resources below help verify a business’ status with its respective Secretary of State office:

What Can a Landlord Ask on a Commercial Lease Application

As a landlord or property manager, there are limitations to what you can ask while screening commercial tenants.

Reduce potential legal issues by limiting your inquiries to the following:

The Business Name

You can ask your potential tenant the name of their business. You can search for customer reviews and complaints if it is an established business.

This allows you to determine whether the business has a good reputation and a stable client base.

The Business Structure

You can ask the tenant for their business structure. This helps you determine who pays rent and operates the business daily. 

Business entity structures may differ for a limited liability company (LLC), corporation, partnership, or sole proprietorship. 

The Intended Use of the Space

You can request details about the type of business the tenant intends to operate. You need to know whether the space will be used safely in a manner consistent with legal and regulatory requirements.

These details allow you to determine whether the space is appropriate for the business’ intended use. 

Previous Rental Information

You can request details about the tenant’s prior rental history, including their previous landlords’ contact information.

References are an excellent way to determine if your potential commercial tenant will be reliable and respectful. 

Business Owner Information

It is reasonable to ask for the business owners’ names and identifying information to conduct credit and background checks.

You have the right to know who will be renting your commercial space and whether they have any financial issues that could prevent them from meeting the lease terms. 

Business Banking Information

You may request banking details from the business, including bank statements, tax returns, profit and loss statements, and a business plan.

As the landlord, you have a right to confirm whether the business can meet the financial obligations of the agreement before you enter into the lease. 

Credit References

Credit reports and references from banks, lending agencies, and businesses associated with your potential tenant can provide critical details.

You can review the potential tenant’s credit history to confirm their financial reliability.

Authorization To Perform a Credit or Background Check

The FCRA requires you to obtain permission before performing a credit or background check on any applicant. You can only use the background or credit check to evaluate the application. 

You must also advise the applicant in writing if you deny their application or take any adverse action based on information in the report. 

To meet authorization requirements, use a background and credit check authorization form template to request the applicant’s name, date of birth, social security number, driver’s license number, and address.

The form should include a signed and dated statement authorizing you to conduct the credit check.

How to Write a Commercial Lease Application Form

A commercial lease application should consist of the following:

Step 1 – Fill in Basic Information About the Property

A business rental application form needs to summarize basic information about the property the landlord is renting:

1. Date of Application
2. Landlord Name
3. Property Address (physical street address including any unit number)
4. Property Square Footage

Step 2 – Enter Business Applicant Information

The next section of a commercial property application addresses the applicant’s basic information:

5. Business name
6. DBA name (if applicable)
7. Type of entity (Corporation, LLC, Partnership, Sole Proprietorship, Other)
8. Date of business formation
9. State of business formation
10. Federal Employer Identification Number (EIN) or Tax Identification Number

It would be best if you also used this section to gather information about the business’ primary location (place of business) and contact information:

11. Office address
12. Business phone number
13. Business email address

Additionally, ask for the following information to get a better idea of how the business operates:

14. Business industry or a description of the business
15. Proposed use of premises
16. Number of years in business
17. Gross annual revenue
18. Other business locations

Step 3 – Write the Name of the Person Signing the Lease/Individual Owner

The person (or persons) who will sign the lease agreement (often the business owner or owners) must provide their personal information on a commercial lease application.

This identifying information helps the landlord conduct any credit and background checks necessary to determine risk and creditworthiness.

The following is what you should ask of each person legally responsible for entering into contracts for the business:

19. Full name
20. Business title
21. Date of birth
22. Social Security number
23. Personal address
24. Personal phone number
25. Personal email address
26. Driver’s license number and state of issue

Step 4 – Identify the Name of the Person Guaranteeing the Lease 

Landlords often ask for guarantors on a commercial lease. This person agrees to fulfill the primary debtholder’s contractual obligations should the debtholder fail to do so.

You may request more than one person to guarantee the lease. For each guarantor, collect the following:

27. Full name
28. Business title (if applicable)
29. Date of birth
30. Social Security number
31. Personal address
32. Personal phone number
33. Personal email address
34. Driver’s license number and state of issue

Step 5 – Collect Bank References

Bank references are bank managers’ written opinions of their customer’s (your applicant’s) financial stability and creditworthiness.

On a business lease application form, gather the information necessary to contact the potential tenant’s banking institution:

35. Bank name
36. Bank contact name and title
37. Bank address
38. Bank phone number
39. Bank email address
40. Account type and number

Request bank references for two accounts, but you can request more or less.

Step 6 – Gather Business and Credit References

Business and credit references are companies or individuals who can vouch for prospective tenants’ business aptitude and ability to make timely lease payments.

When writing your application, request the following business and credit reference information:

41. Name
42. Title (if applicable)
43. Business address
44. Relationship to applicant
45. Phone number
46. Email address

Always ask for at least two credit or business references on your application.

Step 7 – Ask for Personal References

Personal references shed light on your applicant’s character.

Request at least two personal references and gather the following from each:

47. Full name
48. Address
49. Relationship to applicant
50. Phone number
51. Email address

Step 8 – Get Lease History

A commercial lease history is a list of properties the business previously rented. If the applicant owned all prior places of occupancy, ask for addresses of real estate ownership. Also, ask if the business entity is paying rent on commercial real estate.

Ask the applicant to provide the following:

52. Current business address
53. Dates of occupancy for current address
54. Reason for leaving current address
55. Whether the applicant owns or rents at its current location
56. Monthly rent/mortgage payment
57. Landlord/mortgage company and contact name
58. Landlord/mortgage company phone number
59. Landlord/mortgage company email address

Gather the above information for prior addresses for the time you deem appropriate.

Step 9 – Enter Assets and Sources of Income

Your applicant should provide information on assets and income sources for consideration in their application.

Request the following:

60. Business assets and their value
61. Sources of income
62. The amount of money brought in monthly from each income source

Step 10 – Fill in Creditors/Liabilities

A business’s liabilities are losses, ongoing obligations, debt, and continued operating costs.

Creditors are people or companies the applicant owes money to.

Ask for the name of all creditors and the amount due to each applicant listed on the commercial lease application.

Step 11 – Identify Other Information to Collect 

You can write other questions on your lease application to gauge whether or not the applicant will be a good tenant.

Ask if the applicant or any principal, officer, or partner has:

63. Been evicted
64. Breached a lease agreement
65. Been sued for nonpayment of rent
66. Been involved in other litigation
67. Declared bankruptcy

If the applicant replies ‘yes’ to any of the above questions, require an explanation.

Step 12 – Ask for Additional Documents 

68. Landlords use additional documents, including bank statements and financial reports, to verify assets and liabilities and to discern the business’ stability and creditworthiness:

• Business financial statements, profit and loss statements, balance sheet
• Personal financial statements (if applicable)
• Bank account statements
• Tax returns (business and personal if applicable)
• Business plan
• Credit report (business and personal if applicable)

Additional Comments

69. Leave space on your business lease application form for additional comments and requirements related to the approval of the commercial lease.

Authorization

A commercial property lease application should include language that states the prospective tenant provides authorization to the landlord to verify all information.

This authorization also gives the property owner the right to conduct credit and background checks as appropriate.

70. Require the applicant’s signature (and date) on your lease application to confirm such authorization.

Commercial Lease Application Sample

Below is a free commercial lease application template you can use to screen potential tenants. Download this form in PD For Word format.

Use our step-by-step builder to quickly create a commercial lease application that helps you screen applicants and find the right tenant.

Frequently Asked Questions