• Commercial Property

    Before You Sign the Lease on a Commercial Property

    14 Aug, 2015 | 530 views

    It is rare to find a property that is without faults. Particularly in the case of commercial properties that have had multiple occupants and high traffic since their construction. There will inevitably be wear and tear in the course of a lease agreement. Problems can arise when there is no clear way of knowing when and how those conditions occurred and who should be responsible for correcting them.

    One of the most common causes of disputes between parties when leasing commercial property centres on the responsibility of damages at the end of the lease. What was pre-existing, and what damages were done during the tenant’s lease? By then it’s too late to distinguish between conditions that existed at signing and damages occurring during the term of the lease.

    Forewarned is Forearmed

    It’s crucial then for both parties to have a clear understanding of the condition of the property before signing a lease. This will avoid disputes, and the potential legal expenses that may result, at the end of a lease. There’s nothing like having the photographic and written professional documentation provided by an independent inspector for settling any such discrepancies.

    At the end of a lease agreement, a property is typically inspected by the landlord prior to releasing any deposits collected at the start of the lease. Lack of any evidence as to the condition of the property at signing makes it impossible to determine what conditions may have changed during the lease, and who is responsible for any damages.

    To avoid any discrepancies regarding the condition of a commercial property prior to signing a lease, it benefits both parties to hire an independent inspector who can provide an impartial expert appraisal of its condition. This condition report would detail findings from the inspection of areas that are generally overlooked by either party in both pre- and post-lease walkthroughs.

    Expert Eyes can Find Hidden Problems

    A professional inspection will include every building aspect from the roof to the foundation, and can identify areas of concern before they become more expensive to repair. It will also provide far more detail regarding the property’s condition than either tenant or landlord would likely find on their own.

    The tenant will benefit from an independent pre-lease inspection by being protected from liability for existing conditions at the start of the lease, and by retaining a good reference at the end of the lease, for any future leasing agreements. The landlord gains valuable insight as to the overall state of the property in order to correct any problems before they worsen, and can provide proof of tenant liability for damages caused during the term of the lease.

    Whether you are renting, leasing, buying or selling, it pays to have a thorough professional inspection of a property in advance of signing any agreements. The savings in time, grievances and resources make it a worthwhile investment indeed.

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