August 2023 | Volume 4
KNOWLEDGE HUB: INSIGHTS AND INFORMATION
How Lonicera Screens Potential Tenants
Screening potential tenants is a crucial step in finding reliable and responsible occupants for rental properties. Proper screening can help avoid potential issues and ensure a smooth renting experience.
Lonicera begins the screening process by meeting with potential tenants. This is essential due to property use restrictions and potential noncompetes of current tenants. These initial conversations give Lonicera a chance to see the potential tenant’s communication skills, professionalism, and compatibility with our property. Lonicera is able to hear more about the potential tenant, their industry, business goals, and what they are looking for in a space. During this time, we are able to provide recommendations on the best spaces we have available in our network for the potential tenant. We encourage potential tenants to see multiple spaces within our network so they feel they have done their due diligence on the properties available.
Before offering a lease to potential tenants, the potential tenant must complete a criminal background check, credit check, and an eviction report. The criminal background check ensures the safety and security of our property and other tenants. Credit checks help assess their financial responsibility, outstanding debts, and payment history. Eviction reports give an idea of the potential tenants past behavior and potential risk. We carefully review each of these reports before presenting a lease to the potential tenant.
Thorough tenant screening process benefits Lonicera, our investors, and the potential tenant. Proper screening helps ensure a positive rental experience and minimizes the risk of issues arising during their tenancy.
COMMERCIAL LEASING OUTLOOK
Commercial leasing has experienced a decrease in signed contracts this year, creating challenges for businesses across various industries. While this trend might raise concerns, there is room for optimism, especially when armed with a well-crafted and proven strategy for leasing commercial properties.
Lonicera has a tenant centric approach which continues to prove valuable in a competitive market. This has been proven as we continue to see above market occupancy in our properties. In fact, in Q2 alone, Lonicera has leased and renewed over 17,000 square feet of space in Columbus, and over 16,000 square feet in Indianapolis.
WHAT THE TEAM IS READING
Article by Alyssa Mercer
Published in 2015 as part of the "BiggerPockets" series, this book focuses on the practical aspects of managing rental properties effectively. This comprehensive resource offers a proven system for every aspect of property management, from finding the right tenants to optimizing profits.
The book starts with guidance on acquiring the right rental properties. Brandon and Heather Turner emphasize the importance of aligning property choices with investment goals. They delve into strategies for identifying suitable properties, evaluating their potential, and making informed acquisition decisions. They continue the book with topics such as tenant screening, lease agreements, repairs and maintenance, legal and regulatory considerations, and exit strategies.
This book delivers a comprehensive and actionable guide that equips landlords and property managers with the tools they need to navigate the complex world of rental property management. By following the proven system outlined in the book, readers can streamline their operations, reduce headaches, and ultimately maximize their profits. With its practical insights and comprehensive coverage, this book is an invaluable resource for anyone looking to succeed in the rental property business.
Since Lonicera Fund IV closed mid April, the team has been actively looking towards Fund V. Although we are currently in Columbus and Indianapolis, we continue to analyze deals throughout the Midwest to ensure we are pursuing the best opportunities for our investors.
If you have any questions about Lonicera Investments, our past performance, or our future, please reach out. We would be happy to sit down with you and answer any questions you have!
ANY ESTIMATES OR PROJECTIONS AS TO EVENTS THAT MAY OCCUR IN THE FUTURE, INCLUDING PROJECTIONS OF REVENUE, EXPENSE AND NET INCOME CONTAINED IN THIS VALUATION SUMMARY OR ANY OTHER OFFERING DOCUMENTS, ARE BASED UPON THE BEST JUDGMENT OF THE COMPANY’S MANAGEMENT AS OF THE DATE OF THIS VALUATION SUMMARY OR THE APPLICABLE OTHER OFFERING DOCUMENT. WHETHER OR NOT SUCH ESTIMATES OR PROJECTIONS MAY BE ACHIEVED WILL DEPEND UPON THE COMPANY ACHIEVING ITS OVERALL BUSINESS OBJECTIVES AND THE AVAILABILITY OF FUNDS. THE ESTIMATES AND PROJECTIONS NECESSARILY MAKE NUMEROUS ASSUMPTIONS WITH RESPECT TO INDUSTRY PERFORMANCE, GENERAL BUSINESS AND ECONOMIC CONDITIONS, TAXES AND OTHER MATTERS, MANY OF WHICH ARE BEYOND THE COMPANY’S CONTROL. THERE IS NO GUARANTEE THAT ANY OF THESE PROJECTIONS WILL BE ATTAINED. ACTUAL RESULTS MAY VARY FROM THE PROJECTIONS, AND SUCH VARIATIONS MAY BE MATERIAL. THE COMPANY HAS NO OBLIGATION TO UPDATE OR OTHERWISE REVISE THE ESTIMATES OR PROJECTIONS TO REFLECT CIRCUMSTANCES EXISTING OR DEVELOPMENTS OCCURRING AFTER THE PREPARATION OF THE ESTIMATES OR PROJECTIONS OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.