Is my tenant creditworthy?
Signing up a new tenant for a commercial lease is a costly process. To find out that your new tenant cannot pay the rent is disappointing and adds further costs to managing your property. Whether or not you hire a real estate agency to manage the property for you, someone has to call the tenant and chase up late payments. If payments fall into arrears for more than two weeks, you should consider re-taking possession of the premises before the arrears exceed what is covered by the bond. All these extra expenses of a delinquent tenant can be avoided by checking you the tenant’s creditworthiness before signing them up in a lease.
Who is responsible for checking creditworthiness?
Neither the letting agent nor your solicitor is responsible for credit checks. It is the landlord’s responsibility to make these inquiries.