Hi,

I am currently renting out a retail space and have two potential tenants to choose from. Both of them are ready to sign and happy to sign my proposed contract. However, one firm is much bigger and probably less likely to default on me than the other. They also seem like pretty professional people and I doubt they would be much trouble during the duration of the lease. However, their effective rent would lie about 7% below the amount the smaller guys have offered.

Shall I pick the bigger rent or the better/safer tenant?

Thanks for your help, all views much appreciated!

Well if you lose one month's rent due to someone not being able to make a go of it you have lost around 8% of the years lease. I would probably lean to the more substantial firm. I suppose yopu have told the more professional company that you have an offer that is higher than theirs and you are wrestling with it because you would like to lease to them? See if they may sweeten their offer a little?

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Dan Connolly
Atlanta Georgia
Atlanta Georgia Real Estate
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Which prospect is most compatible for the rest of your tenant base?


You generally don't want to put in an Adult Video Shop in next to the Christian Book Store.



If both prospects are equally compatible for the rest of your tenants, the more stable one is the obvious choice.

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
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has the small guy got some references? this might help you to decide in their favour, if not you may charge them a bigger deposit as security..

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Bad Credit history not such a problem with mortgages:
mortgages for people with bad credit, bad credit mortgage and IVA mortgage

The book store might like it, with a chance to help sinners Not so much for the video store though....

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If you're not remembered, you never existed.

Don't be so sure. I think they would be much more comfortable.

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Lane Bailey
I have an office in Dacula, but I'm NEVER there.
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So which one did you pick? At least come back and let us know how it worked out.

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Jason Painter
Broker | Owner | REALTOR®
PROGRAM Realty, LLC
Englewood Florida Real Estate | Boca Grande Real Estate | Port Charlotte Real Estate

I would go with the smaller firm. because they will be doing the same credit check.

You can get a bad tenant no matter how big the firm is.. I deal with a small firm because I don't like big firms and I would never work for a large firm. I just prefer to work with small firms not only to work with the little guy. And anyway I think because the small firm is small it will only be better for you because they do not have as many customers. So that means they will work with you more then a firm with hundreds.

Go with the big guy... Then you can just sit back and focus on other things. Not to mention the lost rent, you may also incur other fees such as advertising, power bills, etc...

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