Last Updated October 16, 2023
Commercial Lease Application
Alternate Names:
A Commercial Lease Application is also known as a:
- Commercial Rental Application
- Commercial Tenant Information Form
- Commercial Property Application
- Business Lease Application
- Retail Lease Application
What is a Commercial Lease Application?
A Commercial Lease Application is a form that landlords use to screen tenants prior to entering into a Commercial Lease Agreement with a business tenant.
Much like a Rental Application for residential properties and tenants, a Commercial Lease Application acts as a first step in leasing property, potentially beginning a landlord-tenant relationship. The application is an objective way of evaluating commercial applicants to see if they are a fit for your property.
Who needs a Commercial Lease Application?
Any person who requires space to operate a business will likely need to fill out a Commercial Lease Application in order to lease commercial real estate. It's unlikely that a business owner in the market for commercial property will secure a 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.
What can a landlord ask on a rental application?
A landlord handling any type of property (i.e. commercial, residential, or mixed) has to remain objective when screening tenants to avoid the possibility of a discrimination suit.
The best way to maneuver this is to use the same application process for every prospective tenant with the same questions for the same type of property.
For example, a landlord's questionnaire for a tenant looking to lease retail space would be the same as any other business tenant looking to rent the same space, but that questionnaire might differ from the one they'd give to an applicant looking for an apartment or condo.
The information landlords typically look for on a Commercial Lease Application include:
- Business information: the business name, intended use of premises, and company structure (sole proprietorship, partnership, etc.)
- Current and previous property information (if applicable): address, monthly payment, and landlord's name and contact information
- Business owner/partner/stockholder information: names and contact information
- Banking information: the tenant's banking institution's name, address, and phone number
- Credit references: industry references (the names and numbers of companies or individuals from whom a tenant makes purchases with credit accounts)
- Credit check authorization: permission to perform a credit check
Typically, a landlord will pursue a lease agreement with the first qualified tenant who meets the criteria of their application and whose business suits the property.
For example, a clothing retailer with great credit leasing space in a shopping mall is a more appropriate tenant than a mechanic looking to open a collision repair shop in the same space.
Keep in mind the criteria can be significantly more extensive for commercial applicants than for residential tenants because the application process can involve requesting formal Offer to Lease letters, conducting background and credit checks, reviewing references and business reports, conducting interviews, and even examining business plans or financial statements.