For some, it would seem that property owners lease office space to just anyone. Not so. Even if the office space has been vacant for more than a year, most landlords follow a qualification system.
Ordinarily, this process involves assessing credit statements, background verifications, tax returns, or examining references. Even so, your financial reports aren’t the only valuable documents property owners go over before deciding to lease your office space. How landlords perceive you is also critical.
In case a property owner feels you’re an unstable tenant, you’ll most likely lose the contract. So, to gear you up on your next meeting with a landlord, here are six things that a 2020 case study by Uxbridge business park found that you may need to do to qualify for renting an office space.
1. Furnish a Solid Business Plan
Do you have a brand-new company? Furnishing a solid business plan to the property owner is fundamental to demonstrating your business knowledge to the landlord. You can also give a background on the company budget, expected sales, competition, etc.
It is better to include details such as when you forecast your company to be productive and break even. As a future tenant, your target is for the property owner to believe in your company the same way they will trust your tenancy.
2. Submit Thoroughly Completed Form
In case the landlord provides you the lease application form, submit it after filling out all the data completely. It may sound straightforward, but often some company owners neglect to complete it. If you want to avoid leaving a wrong impression, submit a thoroughly completed form to guarantee your application is on top of the file.
3. Enlist a Credible Tenant Advisor
Enlisting the services of a reputable tenant representative (like the ones we have at OfficeFinder) and/or a lawyer can prove to property owners you’re serious about renting an office space. Having professional representatives to help you deal with landlords will ensure you’ll be able to talk about every crucial detail in your contract and avoid costly mistakes.
What’s more, they can help you shorten the negotiations with the property owner and avoid lengthy proceedings. Also, tenant advisors are familiar with the real estate market since they do this day in and day out.
4. Provide Statements of Assets & Liabilities
For property owners to see your company as a qualified tenant, provide your bank statement showing your assets and liabilities. This statement will show the landlord if your company has adequate assets or cash to pay off your lease after factoring in your debts.
Furthermore, property owners want to see if your assets and cash can cover your entire lease in case of a business failure. Handing over an impressive statement of assets and liabilities will ensure your deal will end positively.
5. Display Stable Credit History
It’s common for companies to experience late payments on loans or credit card statements. In case this happens to you, this is the time to change and clean your habits. For property owners see you as a steady tenant, you need to demonstrate you’re financially stable. And as proof, this will require exhibiting strong credit and financials.
If you’re planning to apply for any loans, begin with the application already so you can show sufficient cash flow to cover your lease. You can also provide these other standard requirements: balance sheets, tax returns, cash flow documents, and other notices from your bank indicating your financials.
6. Be Ready to Relocate Soon
Finally, if the space you’re eyeing is in a popular and hot office location, see to it you can relocate immediately. Most often, landlords lease prominent locations fast. In case you chance upon an area you feel is right for you, focus on securing the place to prevent another company from renting it.
When there are one or more groups wanting to secure a specific office space, landlords typically favour the able, ready, and eager to move party quickly. Remember, property owners avoid wasting time on clients who are not aware of their requirements. It’s best to know your office space needs, electrical requirements, and zoning needs so you’ll have an idea if the location is a good fit for your company.
As an entrepreneur, one of the significant decisions you have to make is whether to purchase a property or rent an office space for your business. If you’re starting your firm and working on a limited budget, it might be in your best financial interest to lease office space.
Please note that it’s essential for potential clients to know you have an office they can physically visit. Showing customers you possess an office space is a huge step in establishing your company. Moreover, demonstrating to property owners, you’re ready to rent will help you get that office space faster.
If you need help finding office space to lease, whether conventional or flexible space, we can help. Contact us today for a no-obligation discussion on how one of our tenant representatives can help.