Commercial condition report

Viewing 6 posts - 1 through 6 (of 6 total)

Tools
Participant
@tools
Join Date: 2003
Post Count: 363
December 28, 2004 - 9:55 am
I have been told by my pm that a condition report is not necessary for a commercial property.What happens if there is ink spilled on the carpet,and the tenant says it was there when they moved in???DO others who have commercial properties have a condition report done,or have you been told it wasn’t necessary?
Tools
Robbie B
Member
@robbie-b
Join Date: 2004
Post Count: 2,493
December 28, 2004 - 9:59 am
It is not necessary because you are only responsible for the floor (not the coverings), the ceiling (not the fittings) and the walls (again, not the fittings). Basically, when a tenant for commercial space leases a property, they lease the shell and undertake the fitout at their own expense. They can also remove it when they leave (excluding what was there when they arrived).
This is common practice.
Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au
FREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
Â© 2004 Mortgage Packaging Pty Ltd
Tools
Participant
@tools
Join Date: 2003
Post Count: 363
December 28, 2004 - 10:02 am
My property is fully partitioned,carpeted,painted etc……someone needs to take responsibility for all I have supplied to the tenant
Tools
Robbie B
Member
@robbie-b
Join Date: 2004
Post Count: 2,493
December 28, 2004 - 10:05 am
In that case, if YOU supplied it, undertake a property condition report so you can take any expenses out of the bond before returning it to them.
It is just normal practice to lease out commercial property as a shell. You are obviously getting higher rental returns providing a fit-out. Protect it and get a new PM.
Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au
FREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
Â© 2004 Mortgage Packaging Pty Ltd
Tools
Participant
@tools
Join Date: 2003
Post Count: 363
December 28, 2004 - 10:10 am
Thanks Robert.I have been thinking the same.The Pm seems to do nothing except collect the rent.Although I am reluctant to find another PM,(this PM has a considerable interest in the building,and I thought therefore would be doing the right thing by me),I may have no other choice.
Tools
byronent_2
Participant
@byronent_2
Join Date: 2004
Post Count: 337
December 28, 2004 - 1:58 pm
Get a New PM instantly I would suggest.
One that treats your property as if it was theirs.
Byronent
Adelaide SA