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What is a Commercial Lease Application?
A Commercial Lease Application is a form that landlords and property managers use to gather information from prospective tenants when renting out a business space. Business spaces include:
- Offices
- Buildings
- Retail stores
- Restaurants
- Industrial spaces
- Warehouses
Much like applications for residential properties, Commercial Lease Applications are a great way to find quality tenants. Using applications is an objective way of evaluating commercial applicants to see if they are a fit for a rental property before entering into a Commercial Lease Agreement.
A Commercial Lease Application is also known as a Commercial Rental Application and Business Lease Application.
Purpose of a Commercial Lease Application
While looking for a business tenant, Commercial Lease Applications help landlords and property managers achieve the following:
- Collect information about the applicant’s business, such as its legal structure, financial history, and contact information.
- Screen applicants to ensure they are suitable for the property and can meet their financial obligations.
- Verify information provided by the applicants by checking references, credit reports, and other documentation.
- Propose lease terms such as the rental amount, security deposit, and lease duration.
A Commercial Lease Application serves as a critical tool in the process of leasing a business property, protecting both the landlord and tenant by establishing clear expectations and ensuring that the tenant is a suitable fit for the property.
Who should use Commercial Lease Applications?
Landlords and property managers should provide Commercial Lease Applications to every business entity that is interested in leasing a commercial rental space.
Any person or business entity that requires space to operate a business should fill out an application to lease a commercial rental property. It's unlikely that a business will secure a rental space without going through some type of preliminary screening with the property manager or owner.
The application process can include an application, a formal Offer to Lease letter, and potentially several interviews with the landlord.
How does a Commercial Lease Application template work?
For landlords and property managers, using a template is the easiest way to create a Commercial Lease Application for potential tenants to fill out.
With our template, landlords and property managers provide some initial information to prepopulate the template, such as:
- The name and contact information of the landlord or property manager
- The rental property’s address and suite number
- The anticipated possession date
- The lease term
- The rent amount
- The operating costs for which the tenant will be responsible
Once the landlord or property manager has provided the necessary information in the template, they save and download the application and distribute it to interested renters, either by printing it or sending it digitally. The application will have blank fields for applicants to provide their information.
Each lease application will vary. Our template asks a prospective business tenant to provide:
- Business information, including the business name, the intended use of the premises, and the business type
- Current and previous rental information, including former addresses, monthly payment amounts, and landlord's name and contact information
- Owner information, including their name(s) and contact information
- Banking information, including the name, address, and phone number of the prospective tenant's banking institution
- Credit references, meaning the names and numbers of companies or individuals from whom a tenant makes purchases with credit accounts
- Credit check authorization, meaning they grant their permission for the landlord to perform a credit check
Often, the criteria is significantly more extensive for commercial applicants than for residential ones because the application process can involve requesting a formal Offer to Lease letter, conducting background and credit checks, reviewing references and business reports, conducting interviews, and even examining Business Plans or financial statements.