Commercial Condition Reports
Understanding Commercial Condition Reports
A Commercial Condition Report (also known as a Dilapidation Report for commercial leases) is a detailed document that captures the state of a property before a tenant takes possession and after they vacate. At Asset Reports, we conduct thorough site inspections, provide a comprehensive written report, and include a suite of high-resolution photos to ensure every detail is documented. Our team of experienced inspectors ensures the quality of each report before delivery.
Without a Baseline Report
the requirements of any Make Good clauses can be very subjective and lead to disagreements
Why You Need a Commercial Condition Report
Commercial leases often span extended periods, sometimes between 10 and 25 years, including multiple renewal options. Over such long durations, maintaining a clear record of the property's condition is crucial, especially for managing 'Make Good' provisions. These provisions might require the lessee to:
Repaint internal and external surfaces
Re-carpet internal areas
Remove non-structural walls installed during the lease
A detailed Condition Report ensures that any obligations to return the property to its original state are based on an accurate, documented baseline report from the lease's start.
Provides Documented Evidence
Written and Photographic evidence provides an additional layer of protection for all parties
Our Services
Full Site Inspection: We meticulously inspect properties of all sizes, from small retail and office tenancies to large industrial assets like distribution centers, warehouses, and manufacturing complexes.
Written Report: Each report includes a comprehensive written assessment of the property's condition.
High-Resolution Photos: We provide a detailed photographic record, linking each image to specific inspection comments using the industry-standard Inspection Express app.
Quality Control: Every report undergoes a rigorous quality control process before delivery.
Quick Turnaround: Reports are delivered within 2-3 business days from the site inspection.
Accommodating Last-Minute Bookings: Our large team can usually accommodate urgent inspection requests.
Trusted and Experienced: Conducting over 20,000 inspections per year, we are one of the largest and most trusted firms in Australia, offering competitive pricing.
Detailed Coverage Areas
Our comprehensive inspections cover key areas, including:
Internal Areas: Walls, floors, ceilings, stairwells, facilities, foyers, and kitchens.
External Structures: Walls, fences, retaining walls, ramps, stairs, and basements to document any damages.
Inventory Reports: Desks, chairs, cabinets, plants, partitions, kettles, coffee machines etc etc
Special Requirements: We can incorporate specific client requirements into our inspections, ensuring tailored reporting.
Advanced Documentation Tools
While our standard reports include detailed written and photographic documentation, we also offer add-on services for those needing extra levels of evidence:
Matterport 3D Virtual Tours: Provides an immersive digital twin of the property, ideal for detailed documentation and 'Make Good' clause support.
Drone Imagery: Perfect for capturing hard-to-reach areas like rooftops, hardstands, and fence lines on large properties. Our drones are operated by CASA-accredited and licensed pilots.
Inspection Express Software
We utilise Inspection Express, a widely used app in the industry, which helps structure our reports effectively and link photos directly to inspection comments, providing a clear and organised document.
Tailored to All Property Sizes
Whether it's a small office or a large industrial complex, we specialise in inspecting properties of all sizes. Our expertise particularly shines in managing large and complex assets, ensuring thorough and precise reporting.
Benefits of Commercial Condition Reports
Benefits for Owners:
- Protects the value of the property by providing a clear record of its condition before occupancy
- Reduces disputes and potential legal issues between owners and tenants over damage or alterations to the property
- Provides a baseline for ‘Make Good’ clauses, which reduces ambiguity and ensures compliance
- Increases transparency and objectivity, which fosters trust between owners and tenants
Benefits for Tenants:
- Provides assurance that any existing damage or defects in the property are documented before occupancy, thereby protecting tenants from being held responsible for pre-existing issues
- Helps to identify any potential issues or concerns with the property prior to taking occupancy, allowing tenants to make informed decisions about whether to proceed with the lease agreement
- Clarifies expectations with regard to the property's condition at the end of the lease, making it easier for tenants to comply with the ‘Make Good’ clauses and avoid disputes with owners
Benefits for Property Managers:
- Reduces disputes between owners and tenants over damage or alterations to the property, which in turn reduces the workload of the property manager
- Provides a clear record of the property's condition before and after each lease agreement, making it easier to manage and maintain the property over time
- Enhances the property manager's reputation as a professional and reliable service provider, which can attract more clients in the future.
Contact Us Today
At Asset Reports, we are committed to providing accurate, reliable, and timely property reporting services. Contact us today to learn more about our Commercial Condition Report services and how we can help you manage your commercial lease agreements with confidence.
Contact the Commercial Department on (08) 6444 6341 or 0488 044 090,
email us at qs@assetreports.com.au or fill out the enquiry form below and one of team will be in touch.
Producing a Commercial Condition Report
Completing a Condition Report yourself can be a daunting task. That’s why we’ve created a helpful how-to guide and FREE downloadable template you can use to produce an accurate, reliable written report.
Or if you’d rather save yourself the stress, contact us for a quote on our Commercial Condition Report packages and let our experienced team inspect the property and produce a high-quality report for you. Having an unbiased third party can give owners, tenants, and agents peace-of-mind and reduce disputes at the end of the lease.
How does it help?
Having a Condition Report in place at the beginning of a lease brings clarity to the obligations of the landlord and tenant and can avoid potential issues including:
Structures that have been added or removed without approval from the owner
Damages caused by the tenant during the lease term
Responsibility for removal of equipment and disputes over ‘make good’ provisions at end-of-lease
Why do you need one?
Without documented evidence of the property’s condition before the tenant takes possession, it can be difficult for the property owner to clearly show the pre-existing condition of the property. This can be a critical factor in the event the condition of the property becomes the subject of:
‘Make Good’ clause dispute
A bond dispute
An insurance claim
Legal proceedings
Trusted by
“We are very pleased with the service provided by Asset Reports – their professionalism, attention to detail, excellent communication and end to end support leaves us with no hesitation in highly recommending them. We are comfortable knowing that all our assets, fit out and condition of all items is fully documented in a format that is easy to understand and ready to provide to any tenant or sub-tenant.
Thank you for the service provided.”
