How should an investor/owner evaluate the creditworthiness of a prospective tenant in a net-leased transaction?
They should evaluate the financial strength of each prospective tenant on its own merit and as a competitor in its industry. They should consider the long-term stability of the tenant and that industry during good economies and recessions. Industries that provide basic products/services tend to be recession resistant. Investors should also consider any other factors and information they or their advisors deem necessary to make an informed investment decisions.
Related Questions
- What should a tenant do if they think they are being evicted so an owner can rent their dwelling unit to Games visitors?
- What should an owner do if a tenant seriously and/or repeatedly violates the provisions of the lease?
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