A landlord uses a commercial rental application to determine if an applicant is a good fit for a commercial property, for example, an office, store, warehouse, or restaurant space.
Landlords ask potential tenants to fill out a commercial lease application so they can collect the necessary information to make the best decision on who to rent their space to.
While commercial property owners desire the best tenants, many do not know what questions to list on a commercial rental application to properly screen applicants. Some also do not know what questions they can legally ask.
This guide helps landlords understand commercial rental applications and their importance in securing an excellent commercial tenant.
It offers information that landlords may not know, including items to look for on a commercial lease application, and a checklist and tips for finding a commercial tenant.
What is a Commercial Rental Application?
A commercial rental application form is a document a landlord or property manager prepares for potential tenants to fill out.
This document needs to be comprehensive and accurate, to help the landlord verify essential information. It is a way to check the creditworthiness of potential tenants and see if applicants will likely operate successfully in that space.
Landlords best manage the critical rental process with a well-drafted document that helps make the most informed business decisions.
A commercial lease application is also commonly known as:
- Business rental application form
- Retail lease application
- Commercial tenant information form
- Commercial property application
Contents of a Commercial Lease Application
What you need to ask on a commercial rental application form may vary based on your specific circumstances.
However, the following are some essential details that most landlords should include as part of their commercial lease application checklist:
- Name of the applicant’s business, current address, and how long the company has been at that address
- Contact information of any previous landlords
- Amount of rent the applicant currently pays or has previously paid
- Nature of the business and length of operation
- Names and contact information of all company owners
- Length of term the applicant wants
- Whether the company has ever failed to pay rent
- Bank the business uses and its contact information as well as bank statements
- Names of business and credit references
- Permission for a background and credit check
- A business plan, financial statement, profit and loss statement, balance sheet, tax returns and income information
- Date and signature line
This crucial information helps inform the landlord about potential tenants and provides the details necessary to make an intelligent rental choice.
A comprehensive rental application makes all the difference in a successful tenancy.
When to Use a Commercial Rental Application?
If you rent your properties to businesses, you should screen applicants with a commercial lease application. Not doing so could mean that you rent to a tenant who lacks the ability and resources to pay—which will ultimately hurt your bottom line.
Typical businesses that need to submit a commercial lease application include, but are not limited to:
- Retail businesses
- Factories and warehouses
- Childcare facilities
- Restaurants
- Shopping malls or kiosks
- Medical clinics
- Hotels, motels, or inns
- Service providers
- Law or accounting offices
- Many other types of businesses
Dos and Do Nots of Commercial Lease Applications
Paying attention to the following dos and do nots can help you create an effective commercial lease application form.
Use the Commercial Lease Application at Legal Templates
You can use the commercial lease application template at Legal Templates to gather the necessary information to screen potential commercial tenants.
Using our attorney-created forms, landlords make accurate and sound business decisions with the essential information in hand.
Let us assist you in creating a proper commercial lease application so you can find the perfect tenant to rent your commercial property.
Frequently Asked Questions (FAQs)
A landlord can and should ask for important information like contact information, authorization for a credit check, and business income information. A complete list is found above in the “Contents of a Rental Application Form” section of this guide. Additionally, landlords can ask questions regarding references and business history, but they may not ask anything that violates federal or state law.What can a landlord ask for on a rental application?
Potential tenants provide bank references to support their income, money in business accounts, and sometimes payment history. A bank reference can be a bank statement or letter from a bank manager, and it is a helpful way to decide if a tenant will be the right fit for a commercial space. What are bank references on a rental application?
You can download a commercial lease agreement form at LegalTemplates.net or use our template builder to create a customized lease agreement form. Using our forms and builders, landlords generate documents that fit their unique needs, such as commercial lease agreement forms for a restaurant space or an office rental application form for a law office.Where can I find a commercial lease agreement form?
