Background Check On Your Landlord
Most landlords spend a lot of time and effort to ensure their prospective tenants will honor their lease obligations, to safeguard against a tenant insolvency.
But tenants rarely do the same.
Tenants often assume their prospective landlords will stick around and they rarely investigate their financial stability.
But tenants have as much, if not more, at stake, and will suffer greatly if the landlord is insolvent.
My client’s headquarters occupies ninety percent of a mid-size office building. If the landlord goes bankrupt or if water is cut off because the landlord hasn’t paid the bills, the tenant’s costs would be huge.
We included a set-off clause in the lease which would allow my client to pay off the landlord’s debts and withhold those amounts from rent.
In the real world, stuff doesn’t always go as planned. Before you sign a long-term lease, check into the landlord’s background and reputation.