How to vet a retail tenant before you sign
“I'm worried about signing a tenant who won't pay.”
By Jose Eduardo Hernandez · REALTOR®, KW Commercial · Nov 2026
The wrong tenant costs more than an empty space. You lose rent, legal fees and months getting the space back.
Before you sign, ask for:
- Financials: recent tax returns or profit and loss statements for the business.
- Credit: for the business and for the owners personally.
- Experience: have they run this kind of business before, and where?
- A business plan: for a new concept, how will they get customers in the first year?
- References: call a past landlord and ask if they'd rent to them again.
A franchise or national brand is generally lower risk, but check whether the lease is signed by the parent company or a small local entity.
If the tenant is new or thin on financials, that doesn't have to mean no. It means you ask for stronger protections, which is the next article.
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General information for Illinois owners, buyers and sellers, not legal, tax or lending advice. Every property and lease is different; talk with an attorney, accountant or lender about your situation.