Building and pest inspection on a commercial property
Buying a commercial property is one of the largest investments you’ll make in your lifetime. Commercial properties can have many of the same issues as residential properties.
In this blog, we will examine what a commercial building inspection is, how it differs from a residential inspection, when you need a pre-purchase commercial building and pest inspection and the different types of commercial properties.
Difference between commercial and residential property
Commercial property and residential property are two very different types of investments.
Residential property is used as housing. It includes single family homes, townhouses, and apartments. Investors rent the residential property out for tenants to live in.
Meanwhile, commercial property is used for business purposes.
Type of commercial properties
Commercial properties are used to undertake business activities. There are many different types of commercial properties and these can include –
offices, medical suites, childcare centres, shops and retail outlets, shopping centres, factories, industrial buildings, hospitals, leisure facilities and warehouses.
Comparing commercial property and residential property
Commercial property has many benefits.
They generally offer higher returns, have longer lease periods, fewer ongoing expenses, greater price stability and plenty of tax benefits.
However, it also comes with several risks.
Firstly, commercial properties are very sensitive to economic conditions.
During times of economic recession, as we see now, the demand for commercial property falls much faster than for residential properties.
While commercial leases can last for years at a time, there are often long vacancies between tenants.
The cost of maintaining a commercial property is relatively high. Even when your property is vacant, you will still have the cost of maintaining it.
What is a commercial building and pest inspection?
A commercial building and pest inspection is a comprehensive examination of your commercial property by a qualified inspector.
Commercial property is non-residential real estate that is intended to generate profit for you.
It is not the same as a residential rental property, where you own a property and rent it out to tenants who pay you in return to live there.
Why should I get a Building and Pest Inspection for my commercial property?
Getting a Commercial Building and Pest Inspection is one of the best ways to ensure you attract tenants.
While investing in office buildings can be very profitable, there are risks involved.
During times of economic hardships such as recession, this reduces the number of businesses looking for offices to rent.
Thus, the market becomes even more competitive.
Prospective businesses want to operate out of a building that is safe, professional, clean and professional.
If your property fails to meet the standards that prospective tenants expect, they will simply look elsewhere.
As such, this illustrates the importance of a Commercial Building and Pest Inspection.
Unaddressed issues like structural cracking, leaks, rust, dampness and timber pest issues can make your commercial property unappealing to tenants.
By getting a Commercial Building and Pest Inspection, you will be made aware of any faults that exist in the property and you can address them.
As such, you will know exactly what renovations you need to undertake prior to your property being leased out, to make sure you have the best chance to attract tenants.
When should I get a commercial building inspection?
Generally, there are two key times you should get a commercial building inspection.
Before you buy it
When you inspect a property before buying, this is known as a pre-purchase inspection.
Getting a pre-purchase inspection is vitally important if you are buying a property to lease out.
This is because the previous owner was likely trying to keep costs down. This means repairs may have been put off or hastily covered up with an insufficient patch job.
The last thing you need is for your new tenant to complain about a building defect that interrupts their business or threatens the safety of their employees. If they are unsatisfied, they may not renew the lease or may move somewhere else.
Before you sell it
Inversely, if you are selling your commercial property, you may seek a pre-sale building inspection.
A pre-sale inspection will tell you exactly what is wrong with your property before it goes on the market.
This means you will not face any surprises if a prospective buyer organizes their own pre-purchase inspection. As such, you will likely have a much easier time negotiating the purchase price.
Alternately, you may wish to provide prospective buyers with a pre-sale report, so they do not feel the need to conduct a pre-purchase building inspection.
Don’t delay! Contact Dedant Building and Pest Inspections today on 07 3807 0122