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:
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.
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.
Typically, our dilapidation inspections cover key areas on target properties including:
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.
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:
Houspect WA or its Directors maintain a number of important professional memberships including:
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 email@example.com