05 Dec Why It’s So Important to Have a Property Condition Report Done Before Signing a Lease
Why It’s So Important to Have a Property Condition Report Done Before Signing a Lease
Leasing out a commercial space for your business can be an exciting and life changing experience for any business owner. Whether you’re starting out, or you’re expanding a home business, it’s important to know what you’re getting into when you’re about to sign the commercial lease agreement.
In your excitement to put up your business in a commercial space for lease, you may have discussed the details of your commercial lease already with either the landlord or the leasing agent. If you haven’t already it’s important to go through your commercial lease thoroughly to ensure it meets the criteria that you need for your business expansion.
With everything going on with your new business opportunity, you may have forgotten one thing.
That one thing you forgot to consider is to have a property condition report done before affixing your signature on the commercial lease agreement. A property condition report is very important for you when looking to lease a commercial property. Without one it could spell trouble for you and your business partners, especially if you haven’t had a good look inside the property. If you’re not sure what this is, this article will give you the run down of what a property condition report is, and why it’s important.
What Is a Property Condition Report?
A property condition report is, in its most basic definition, a written report that is used to determine the condition of a property once the lease starts taking effect.
- The property, in this case, is the commercial space that is being rented out for the use of potential tenants.
- The lease being referred to pertains to a commercial lease.
- The property condition report is published after a thorough assessment of the condition of the property by an inspector, or a structural engineer has been made.
The Importance of Having a Property Condition Report Done Before Signing Your Lease
Signing the commercial lease agreement between you and the landlord right away might sound like an accomplishment to you now that you’re ready to occupy it finally.
However, once you enter the commercial space you officially leased, you’re left feeling frustrated after finding out that the previous tenant who leased it had left it with a significant amount of damage to it.
Rather than trying to cover it up by just shouldering the costs of any repairs you’re about to do, you should’ve had a property condition report done instead before even signing the commercial lease agreement.
Having a property condition report done before signing your lease is important for the following reasons:
- A property condition report tells you what to expect with the commercial space you want to lease for your business.
No one wants to get the short end of the stick, especially if you’re dealing with prime commercial space for lease where you want to put up your business. Having a property condition report done before signing the commercial lease agreement is a surefire way to know you’re getting what was advertised.
A property condition report done by a qualified property inspector or structural engineer helps to make the commercial property has undergone a thorough and detailed property condition assessment. This will help you to determine if the property is safe to use and will help you cancel your lease agreement if something isn’t right with the property.
- A property condition report serves as an organized way of documenting the condition of the commercial space before occupying it.
Forgetting to write down any significant damage to the commercial space you’ll be leasing makes it harder for you to recall things. Thus, it’s a good idea to have a property condition report done before signing the commercial lease agreement between you and the landlord.
A written report detailing the results of the property condition assessment, as conducted by a qualified property inspector or structural engineer, ensures that any problems that may arise during their assessment would be adequately documented for posterity and public records.
This report will help you understand the structural integrity of the property you’re leasing and if there’s any major issues that may need to be fixed before moving your office and employees into the commercial space. This helps you manage your budget better and helps you to negotiate the lease better as well.
- A property condition report is ideal in case you enter into a dispute over any damages to the commercial space.
Perhaps the most prominent importance as to why you should have a property condition report done is to have it as evidence that you can present if ever you and the landlord get into an argument over damages incurred to the commercial space itself.
Be mindful of the landlord you’ll be entering into a commercial lease agreement with as they may blame you for damages that were already there. Having a property condition report done prior to signing the commercial lease agreement between you and the landlord serves as your protection against any legal practices that your landlord can do once you occupy the commercial space you leased.
Conclusion
The commercial space for lease may look the part at first glance. As a result, you might be more than tempted to sign the commercial lease agreement between you and the landlord renting it out without any hesitation on your end.
However, if you haven’t had the condition of the commercial space assessed thoroughly by a property inspector or structural engineer, chances are you may end up being wrongly blamed for having incurred damages to it that you didn’t know even existed.
It’s therefore important for you to have a property condition report done before signing your lease not only to save yourself the trouble of having damaged the commercial space you’re leasing, but also to make your entire stay in the commercial space you’re leasing as worry-free as possible. So, are you ready to get your property condition report?
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