Why Are Commercial Property Reports So Important?

For many builders and consultants in property, it is absolutely vital that they maintain proper records of the properties they assess. This record of an assessment can be the difference when offering information for a purchase or sale in real estate. One of the most commonly used types of reports is Dilapidations. Dilapidations are reports that essentially highlight the difference of the condition the property is actually in and the condition of the property the other involved party thinks it to be in. This has the benefit of allowing a party to transparently see the legal liabilities it has when accepting the condition of the property described in leasing agreements for example. These reports can also be used in the court of law in the face of any discrepancies in the status of the property. It is known that these reports can even be used for litigation in serious cases. Let us take a look and how these reports are prepared.

Preparation and Content of the Report

What goes into this report? What kind of preparation is needed? Let us answer these questions. Good photographic records are an integral part of the report and are seen as hard evidence of the assessment mentioned in writing. This however does not mean that the report should be flooded with haphazard photos of the property which do not make any sense or justify anything. Ideally, these reports should have a nice mix of photos, sketches, comments and of course more importantly recommendations. You should always seek out a professional with years of experience and an extensive background dealing with architectural, building and engineering concepts. Your consultant should understand the probable high-risk areas in a property and should be able to carefully assess these areas and produce the best possible report. A good foresight on what could happen to structural integrity is also important so as to ensure you avoid unwelcome damages in your property in the future. Another important point to be considered is the clarity of the report, dilapidations would be of little use if they are not clear enough for the average person to get a clear picture of the true status of the property. An overly technical report will not serve the purpose and highlight any differences between what you think of the property and the reality of its status.

Defects Should Be Identified

In general, dilapidation reports should clearly identify any defects in the property. This would include things like corroded steel etc. A comment on how what corrosion could lead to in the future will really add value to this report.

Maintenance Tips Are Not Necessary

Some reports include tips for maintenance, however, this is not necessary. The overall condition and defects should be mentioned and nothing else.  A single photograph depicting a notable defect is enough to get the point across unless of course a very detailed systematic approach is requested from the client. An excessive amount of information will not make anything clear for the parties involved. It is always better to be clear and precise!

 

Image Credit: Architect

Leave a comment

Your email address will not be published. Required fields are marked *