Wednesday, September 5, 2012

Leasing Out Manufacturing Space

In the work of manufacturing, there is usually plenty of left over space at different times during the business cycle. This unused space can be put to work by leasing it out to other companies and individuals. If you end up taking on this task, then you will need a credit check for landlord to determine who is the best candidate.

This type of credit check will give you a global sense of the candidates that have passed the first round of the application process.  You will most likely be dealing with the owner or top executive of that company when conducting the background check.  The check needs to focus on criminal record, past rental history, and their credit score.

If you run across an applicant that has a criminal record, then you are best to eliminate them from the process.  You are sharing space, and they will have access to your business and equipment.  You do not want to be put in a stressful situation like this.  The rental history is the next important factor to look at.  If they have broken leases in the past, then they will not have a problem doing it again.  When calling on rental history be sure to ask specific yes or no questions.  Finally, you want to look at the overall credit score of the person signing the application.  The ideal score is greater than 700, but a 600-699 score is alright if they are your best applicant.  If you do not have an applicant with a high credit score, then you should increase the deposit.