I am assuming the question is related to screening commercial real estate tenants.
The important aspects of choosing good commercial tenants are the screening process and then establishing a good security deposit.
It is important to ask the tenant for their Federal Tax ID # so that you can do a credit check on the company. Conducting a credit check on a commercial tenant is different than a credit check on an individual.
You do not need a company’s permission to do a credit check. For individuals you need their written permission. You should also ask for the by-laws or the operating agreement of the company so you can check to see who is responsible and permitted to agree to real estate transactions. In addition, you should call the tenant’s previous landlord and ask them about the tenant’s payment history, behavior, etc. Also, be wary of companies that have just started because they will not have any financial history so their creditworthiness may be in question. Another part of the screening is to ask for the tenant’s financial statements and a recent bank statement. The tenant should have at least 12 months worth of rent in their bank account. The bank statement should be in the exact same name as the entity that is signing the lease.
In regard to the security deposit the landlord should always be “ahead of the tenant”. That is, if the tenants is given 3 months free rent then the landlord should ask for at least four months of security deposit.
