Nowadays, everything is easily accessible, organized, and well-maintained thanks to advanced software that enables you to input and track nearly every aspect of your life. These same technological advantages we enjoy in our daily lives have also translated to improved efficiency and productivity in commercial real estate. Now, more than ever, the right software is needed to address and realize a property’s true potential. Your ability to earn is contingent on having the right tenants. In a world where technology is at our fingertips wherever we are, we have advantages in mitigating tenant credit-worthiness troubles with commercial real estate software.
CRE Tenant Risk Assessment
Mitigating tenant creditworthiness in commercial real estate is easier than ever. CRE Software can quickly analyze a tenant’s credit score or rating. Programs can also isolate and present a financial history as well as other pertinent data.
When combined, the details of a potential tenant’s credit worthiness can help landlords and property owners to make more informed decisions as it regards lease management and compliance. However, it’s still an involved process that allows for a number of other factors to be presented and then considered.
Other Factors That Might Contribute to CRE Tenant Credit Worthiness
CRE software applications can also provide automated background checks. This will present a more comprehensive picture outside of any immediate financial risks or factors. While negative hits on a background check might not necessarily mean that a tenant lacks creditworthiness, it does allow for a bigger understanding of a potential tenant’s recent history. Here is where you might find details on eviction history and any legal disputes that might help to weed out problematic tenants. Poor credit and a sketchy background are problems that can drive property managers crazy, so it’s best to nip this problem in the bud.
Predict Your Tenants Financial Stability
It’s called “Predictive Analytics” and it is often a key feature in several advanced CRE software platforms. Predictive analysis means that the software is able to analyze tenant performance along with their revenue, profit margins and available market trends in order to determine a tenant’s creditworthiness for the length of the lease. This is a relevant tool that prepares landlords for any potential lease defaults before they might occur.
Real-Time Alerts Are Essential
CRE software should also be up to date on tenant payments and behaviors so that landlords and CRE property owners are more able to make decisions in real time. Alerts will notify property owners of tenant payment statuses, upcoming due dates for lease payments or sudden changes in a tenant’s financial situation. This means that tenants can be quickly notified if a tenant’s credit worthiness becomes an immediate or looming threat to lease compliance.
CRE Tenant Risk Assessment is Essential
When properly presented, CRE tenant credit worthiness can quickly help property owners to weed out the good players from the bad. Bad credit doesn’t mean that a company can’t turn things around. Great credit doesn’t protect a tenant from default or bankruptcy. Having powerful technology paint you the full picture of all of these factors is your best bet to avoid problem tenants. If you would like to know more about our CRE software application and how it can help you, contact us today or schedule your free demo.
