Commercial Lease Dilapidation Inspections

Why do WA Commercial Lessees/Lessors need a Commercial Lease Dilapidation Inspection?

Commercial Leases tend to be for extended periods which may also include multiple options to renew periods, which can extend the lease even further. Hence, it is not unusual for a commercial property lease to extend out between 10 and 25 years. Furthermore, there can be significant post Lease “make good” provisions which can include obligations on the Lessee to:

  • Repaint the internal and external surfaces
  • Re-carpet internal areas
  • Remove internal non-structural walls which may have been installed during the lease for offices, meeting rooms etc.

The key challenge remains how to determine the condition of the items that do not need to be replaced, repainted or recovered in the property but need to be returned to the Landlord in a condition determined at the commencement of the Lease, which can be many years after the Lease commenced.

A potential solution is a detailed dilapidation (condition at a point in time) report undertaken by an independent building inspector, supported by an extensive library of photographs. The goal of these reports is to provide an independent record of the condition that the property was in at the time the Lease commenced. Any conditions which exist when control of the property is returned to the Landlord or Leasing Agent at the end of the Lease requiring the property to be in the same or similar condition, can be referenced back to the independent dilapidation inspection report at commencement of the Lease.

What are Dilapidation Inspections for Commercial Leases?

Dilapidation inspections for Commercial Lease purposes are a pre-lease inspection on a commercial property.

The aim of the inspection is to document the condition of the property pre-lease to represent a solid independent reference point post-lease to assist in resolving any make good obligations post-lease.

What does our Commercial Lease Dilapidation Inspection typically cover?

Typically, our dilapidation inspections cover key areas on target properties including:

  • Internal walls, floors, ceilings, stairwells, facilities, foyers and kitchens are inspected for cracks, defects or damage
  • External walls are examined for cracks, defects, structural movement or subsidence or any other form of damage.
  • External fences, retaining walls, ramps, stairs and basements are inspected for cracks, defects or damage.
  • Specific requirements can generally be incorporated as required.

Our building inspector will carefully assess and survey the current property condition, documenting and photographing any existing internal and external cracks, gaps, damage or subsidence, giving a record of any pre-existing building defects. The report is supported by an extensive photo library.

What types of properties can be inspected?

  • Commercial, rural and industrial buildings
  • At height properties can also be inspected through the use of commercial drones flown by CASA accredited and licenced pilots.

About Houspect Building Inspectors

In WA, building inspections and building inspectors are unregulated. As a consequence it is important that you have total confidence in the quality, skills, experience and professionalism of your building inspector. At Houspect WA:

  • Every one of our building inspectors is a WA Registered Builder in their own right. Their Builders Registration number is recorded in every report.
  • Every building inspector has a minimum of 20 years direct construction industry experience.
  • Our building inspectors are fully insured with Professional Indemnity and Public Liability.
  • Every inspection report produced by Houspect WA is subject to a minimum of two levels of quality assurance review prior to being released.
  • Our state wide clients and building inspectors are supported by a dedicated, knowledgeable and experienced customer service team based in our Balcatta operations centre.
  • All calls, enquiries or bookings are addressed promptly and professionally by our dedicated customer service team during our business hours of 8.30 am to 5.00 pm.
  • Our building inspectors are located across the entire Perth metropolitan area and in most major regional centres in WA.

Houspect WA or its Directors maintain a number of important professional memberships including:

  • Master Builders Association of WA
  • Housing Industry Association
  • Strata Community Association of WA
  • Australian Institute of Conveyances WA

During the 20 plus years of operating in WA, Houspect has conducted in excess of 50,000 quality building inspections.

For more information or to book a commercial lease dilapidation inspections, call Houspect on Phone 9240 8855, email us at commercial@houspectwa.com.au

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