As a commercial investor, you want to feel confident about your property’s value and earning potential. The key to smart buying? Ordering a commercial property inspection. Here are five ways commercial inspections can save you from hidden costs while allowing for maximum return on investment:
1. Predicts future property earnings. An inspection could tell you what sort of profit you can expect from your investment. Physical aspects of a building are a large part of the financial reports that are prepared to predict the property’s future revenue stream. This examination process is called “due diligence,” and it’s just one of many services your property inspector offers during the acquisition process.
2. Checks for damage from previous tenants. Most property sellers don’t disclose superficial damage or structural problems outright during a sale. For property buyers, a pre-purchase inspection will ensure you won’t be caught off-guard by surprise repair costs down the road. And for current property managers, research shows 1 in 4 occupants shouldn’t receive their security deposit back due to significant property damage. A post-occupancy inspection will help legitimize any decision you make about a tenant’s deposit.
3. Reduces insurance claims. According to the Insurance Information Institute (III), the average property insurance claim is $9,779 with an owner filing at least one claim every nine years. Getting a full report from a commercial inspector every few years will help you gauge the condition of your structure, roof, plumbing, and more, saving you the headache and financial burden of finding out after it’s too late.
4. Closes a sale. More often than not, inspections are required for getting a commercial real estate loan. Inspection findings often give you the advantage of creating a lucrative loan package in which you, the buyer, have the power. In addition, presenting a property inspection to potential tenants can easily seal the deal on your contract. An inspection report communicates the safety of your building and your reliability as a landlord.
5. Secures well-being of tenants. We all know that safety is top priority. Happy, healthy tenants always result in better business. Investing in a full property inspection upfront can help you enjoy more opportunities and profitable partnerships down the road.
Only 5% of inspection companies prioritize commercial real estate, and National Property Inspections is one of them. Let us give you peace of mind when it comes to your property. NPI’s inspectors are equipped with the specialized knowledge, experience and expertise to prepare a complete report for your commercial property investment.
With offices in 49 states, NPI has local licensed inspectors available to assist you with your commercial property needs. To find an inspector near you, call our National Accounts Department at 1-800-333-9807 ext. 30.
For more information, visit www.npicommercial.com.