Why do I fail the screening process for a serviced office? Causes and precautions explained

• Update:2025/4/8

Since serviced offices are used by many companies together, tenants are thoroughly screened. During the screening process, the credibility of the company, appropriateness of the business, and ability to pay rent will be checked, so be sure to be able to explain your business and other details properly.

However, there may be cases where you still fail the screening process for a serviced office. In this article, we will explain in detail why rental offices are screened, the main reasons for failing the screening, and the required documents. If you want to have a smooth screening process for your office, please take a look at this article.

Why are serviced offices screened?

When signing a serviced office contract, a screening process is generally conducted. The purpose of the screening is to confirm that the prospective tenant is a trustworthy company or individual and to prevent problems with other tenants.

In particular, many businesses, especially serviced offices, share an address in the same facility. The management will determine in advance whether there are any problems with the ability to pay rent, the manner of the users, or the relationship with other tenants.

For example, if a company is likely to default on rent payments or if its operations are opaque and unreliable, it may affect the overall operation of the office. If a business has a history of complaints or is prone to business problems, it may be carefully screened to avoid problems with other tenants.

In addition, although serviced offices allow the address to be used for corporate registration, the nature of the business will also be strictly checked to prevent companies with fraudulent or illegal business activities from moving in.

Screening of serviced offices is intended to protect not only the contractor himself / herself, but also other tenants and the sound operation of the office. Proper screening ensures that a safe and comfortable business environment is maintained.

What are the reasons for failing the screening process for a serviced office?

There is a certain pattern to the cases where applicants fail the screening process for serviced office space.

The screening process checks whether the prospective tenant is a trustworthy company, has the ability to pay rent, and will not cause problems with other tenants. Therefore, if the nature of the business is unclear or if there are concerns about the stability of the business, there is a high possibility that the applicant will not pass the screening process. In addition, each serviced office may have its own set of conditions and types of business that are not allowed, so be sure to check in advance.

Here we will explain in detail the main reasons why you may fail the screening process.

Business is opaque

Companies that do not know what kind of business they are engaged in are a risk to the management and are therefore less likely to be screened. In particular, if the description of the business is insufficient or specific activities are not visible, the company may be judged to be unreliable.

Companies whose business activities are unclear may be suspected of being involved in fraud or illegal activities, so screening tends to be more difficult from the perspective of protecting the credibility of the rental office.

During the screening process, it is important to clearly explain the company’s business activities and communicate its business plan and operations in an easy-to-understand manner. Specifically, prepare a company profile, business plan, materials explaining your products and services, and past business transactions to provide information that will reassure the operator.

Low business profitability

It is very important for serviced office operators to ensure that rents are paid. Therefore, companies with low profitability or unstable management tend to have difficulty passing the screening process. In particular, companies that have just been established or have had extremely low sales in the past are more likely to be judged to be at risk for rent arrears.

During the screening process, proof of sales and a business plan may be requested to confirm financial condition and cash flow stability. To avoid concerns about profitability, be prepared to explain your business growth prospects and stable profit structure. For newly established companies, it is important to explain the status of personal funds and loans to show that the company has a stable management base.

It is a complaint-prone industry

In order to avoid problems between tenants, serviced office operators carefully screen businesses that are prone to complaints. Companies that engage in telemarketing or door-to-door sales, and consumer service businesses that frequently handle complaints require special attention. Also, companies that engage in aggressive sales in financial businesses may have difficulty passing the screening.

If your business is in an applicable industry, clearly explain your business operating policies and customer service rules, and demonstrate that you have a low risk of complaints. In addition, presenting customer satisfaction data can provide reassurance.

Trying to use it in a business that is not available in the first place

There are certain types of businesses and uses of serviced offices that are prohibited by the Terms of Use. Typical examples include businesses related to antisocial forces, use for religious organizations or political activities, and businesses of an illegal nature. Many offices do not allow these types of businesses to move in, as they are considered to be at high risk of social trust issues and trouble.

Also, be aware that some industries are subject to legal restrictions. For example, financial and professional businesses (lawyers, tax accountants, etc.) may be restricted from using an office unless certain conditions are met.

Before applying for a serviced office, check the official website and contract to see what types of businesses are allowed to use the office. Also, if your business is on the sensitive line, it is important to consult with the management beforehand to confirm whether or not you can sign a contract.

Made false statements in documents

During the screening process for serviced office space, you will be asked to submit documents containing basic information about your company and its financial situation. At this time, false statements regarding the nature of the business, sales, date of establishment, etc., will not only pass the screening, but may cause the company to lose credibility, which may affect future office contracts.

The management carefully checks the submitted documents. In particular, if false information is provided regarding sales or business conditions, the discrepancy will later be discovered and the screening process will become more difficult.

Furthermore, if false statements are revealed, your application to other serviced offices may be rejected for the same reason. In particular, major serviced offices may keep records of tenants who have caused problems in the past, so once your credit is lost, you will not be able to get it back.

In order to pass the screening process, it is important to give accurate information to the management and provide supplementary explanations if necessary. If you have any concerns about the information on your documents, consult with the management in advance to ensure that you provide the information in an appropriate manner.

I’ve done a messy job of dealing with it

In addition to the content of your documents, the way you handle the application process is an important criterion in the screening process for a serviced office. Messy correspondence or lack of courtesy during the screening process may be detrimental to your application.

For example, behaviors such as late submission of documents, extremely slow responses to e-mails, and insincere responses on the phone can cause the management to lose trust in you. In addition, if you are arrogant when making inquiries, it may be judged that “letting this person move in may cause trouble.

In some cases, the way you respond can change the outcome of the screening process, so it is important to be sincere and courteous from the application to the screening communication. Be sure to reply to e-mails promptly and include all necessary information without omission. By making a good impression on the management, you can increase your chances of passing the screening.

What documents are required for the screening of serviced offices?

The screening process for serviced offices requires the submission of several documents to verify the contractor’s reliability and soundness of the business. Basically, required documents differ between corporate and individual contracts. For corporate contracts, the following documents are required to show identification and business activities.

• Application form
• Certified copy of company registry
• Proof of seal registration
• Income statement, balance sheet, and corporate tax return
• Identification documents of the representative

However, required documents vary from office to office, so it is recommended that you contact the office of your choice to confirm. The screening process will go more smoothly if all the required documents are in order, so please make sure you are well prepared.

Summary

Screening of serviced offices is done to verify the reliability of tenants and their ability to pay rent, and to maintain the overall safety and smooth operation of the office. If you fail the screening, you may have submitted materials with unclear explanations of your business and profitability.

Also note that misrepresentation of documents or inadequate correspondence may cause the applicant to fail the screening. To pass the screening process, it is important to prepare the necessary documents in advance and be sincere and courteous. Make appropriate preparations and proceed with the contract smoothly.