How to Perform Commercial Property Inspections Using Software and Checklists?

Buying or managing a commercial property is a monumental task with its share of potential pitfalls. A meticulous commercial property inspection can help you detect any deficiencies early on and ensure you make an informed decision.

But this doesn’t mean you should settle for archaic pen-and-paper checklists and cumbersome reporting. Famous hotel chains like Hyatt and Latour Hotels & Resorts have already switched to digital inspection tools.

Commercial Property Inspection Software & App

GoAudits commercial property inspection app helps you dodge the challenges of traditional commercial real estate inspections. These include excessive reliance on paperwork, outdated checklists and spreadsheets, manual report creation and distribution, numerous in-person meetings, delayed reporting times, and more.

With GoAudits, you get ready-to-use inspection checklists, which you can fully customize based on the property type. GoAudits equips inspectors with a mobile app that can be used on both iOS and Android devices. Through the app, inspectors can:

• Conduct inspections in remote locations
• Submit inspection summary
• Assign checklist items to roofers, plumbers, etc.
• Generate and share reports in a single click, and more

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What is a Commercial Building Inspection?

A commercial property inspection consists of a thorough inspection of a commercial real estate, in most cases, before renting, buying, or leasing it. One can also opt for a commercial building inspection for maintenance purposes.

Commercial real estate inspection helps you check potential threats associated with a commercial property. These may include safety hazards, code violations, environmental issues, maintenance problems, etc. With a thorough commercial inspection, you can estimate the value of a property. It can also help you budget for repairs and better picture your future ROI.

However, what comprises a commercial property? A commercial property is a real estate built on a commercial space for generating revenue. It can be categorized into five types:

• Office spaces such as office buildings, coworking spaces, etc.
• Retail/hotels such as shopping malls, cafes, restaurants, etc.
• Multifamily residences such as condos, rental property units, etc.
• Land
• Others: these may include fitness facilities, warehouses, etc.

Commercial vs. Home Inspection

Feature	Commercial Inspection	Home Inspection
Inspection standards	Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process developed by ASTM	Standards of Practice
Typical fee range	$500 – $5,000+	$300 – $500
Pricing basis	Square footage, complexity, scope	House size, inspector qualifications
Common inspection areas	Major building systems, roof, exterior, mechanical & electrical	Foundation, structure, roof, plumbing, electrical, HVAC
Additional services	Environmental surveys, accessibility audits, energy audits	Radon testing, termite inspections, pool inspections

Who Performs Commercial Property Condition Inspections?

An asset or a portfolio manager usually hires either of the two to perform a commercial building inspection:

1. Engineer/Architect: They are domain experts in building structures, maintenance, and related subjects. They have a keen eye for defects present in a commercial property. However, due to their level of expertise and experience, their hourly rates may burn a hole in your pocket.
2. Professional Inspectors: You can hire inspectors from inspection agencies or companies. However, you must verify that they offer a specialized inspection for commercial properties and charge no hidden fees.

Regular property inspections are a lifeline for asset and portfolio management companies. They safeguard investments by spotting issues before they become expensive problems. Timely maintenance keeps occupants of the commercial building safe and happy, minimizing vacancies and maximizing rental income.

However, hiring inspectors or engineers/architects for regular inspections is expensive. A digital inspection tool like GoAudits can be a more affordable and easy-to-use alternative.

With the right digital inspection tool, you can perform as many commercial real estate inspections as you like. They offer commercial inspection checklists that allow you to delegate tasks to your team members and access the real-time data at your fingertips anywhere.

Paper-Based vs. Digital Commercial Property Inspection Walkthrough

Traditionally, property inspectors use pen and paper, sticky notes, voice recorders, cameras, diagrams, etc., for inspections. However, these traditional methods are time-consuming, inaccurate, inaccessible, and prone to data loss.

This is where inspection software performs better than traditional methods. The best commercial auditing tools offer an in-built inspection checklist, mobile apps compatible with all devices, and a real-time data capture mechanism.

What Does a Commercial Real Estate Inspection Involve?

A commercial property inspection involves a walkthrough from the inspector you hire. During the walkthrough, the inspector will take photos of the deficiencies observed in the building. They will also take note of the potential threats or fixes needed in the future. Additionally, the inspector would conduct exterior, interior, document, and system verifications of the building.

After inspection, the inspector would document their findings in a report and hand it over to the client. Ideally, the report should contain photos of the defects. However, due to the manual process, photos might need to be found.

How to Conduct a Commercial Property Inspection: A Quick Guide

A thorough commercial property inspection is a multi-step process. While a professional is always recommended for a full due diligence inspection, here is a quick guide for regular maintenance and monitoring:

Step 1: Plan and Prepare

Before you begin, gather all necessary documents, including previous inspection reports, floor plans, and maintenance records. This provides a baseline for your assessment. A detailed checklist is your most important tool, ensuring you don’t miss any critical areas.

Step 2: Start with the Exterior

Begin by walking the perimeter. Look for signs of damage or wear on the roof, siding, foundation, and windows. Check drainage systems for clogs and ensure landscaping isn’t causing a risk to the building structure.

Step 3: Move to the Interior

Systematically inspect each room. Pay close attention to ceilings, walls, and floors for signs of leaks or structural issues. Test doors, windows, and fire safety equipment. Document any signs of mold, pest infestations, or code violations.

Step 4: Assess Major Systems

Crucial to any inspection is a check of the building’s core systems:

• HVAC: Check for proper operation, filter cleanliness, and any unusual noises.
• Plumbing: Look for leaks, water damage, and proper water pressure.
• Electrical: Inspect the main panel for signs of overheating and ensure all outlets and lights are working.

Step 5: Document Everything

For a successful inspection, detailed documentation is key. Use high-quality photos and videos to capture issues. Write clear, specific notes for each finding. The easier it is to organize and share this data, the more effective your inspection will be.

What Do Inspectors Look For?

A commercial inspector generally looks at the following aspects of a property:

• Property Documents: The inspector verifies documents associated with the commercial property. These include planning applications, appraisals, contracts, environmental studies, certifications, permits, evacuation plans, etc.
• Building’s Exteriors: It includes inspecting landscaping, roofing, parking lots, etc. The inspector might work with construction experts to inspect roofing and landscaping.
• Building’s Interiors: Walls, working spaces, windows, kitchen and pantry facilities, etc., comprise the components of interior inspection.
• Building Systems: There are five major systems that an inspector would check – electrical, heating, air conditioning, plumbing, and ventilation. In case of a defective system, the inspector would include the cost of repair or replacement in the commercial field inspection report.

The Property Condition Report (PCR) is a significant part of the inspection process. It helps the portfolio manager, asset manager, or investor understand the actual condition of a commercial property.

However, in most cases, reporting is manual. Hence, inspection agencies or companies might spend several hours and resources on it. Digital commercial inspection tools like GoAudits propose an easy solution for this.

Free Resources: Report Template and Commercial Checklists

Explore these free report and checklist templates to understand how GoAudits simplifies commercial real realtor inspections.

Free Commercial Property Inspection Report Template

Here’s an example of a commercial property condition report sample for an office generated with GoAudits:

Here’s what Kristin Ingram, Regional Director of Resort Operations at Latour Hotels & Resorts, has to say about GoAudits’s reporting feature:

“GoAudits provides us with trend reports that assist us in our annual budgeting processes. In addition to the portfolio trends, we now know the top 5 issues for each property and can reserve funds to correct them.”

Kristin Ingram, Regional Director of Resort Operations, Latour Hotels & Resorts

Popular Commercial Inspection Checklists

Here are some ready-to-use commercial building inspection checklists:

• Commercial Building Property Inspection Checklist
• Building Exterior Maintenance Checklist
• Automatic Door Maintenance Checklist
• Property Damage Report Templates
• Window Inspection Checklist
• Stair Inspection Checklist
• Heat Pump Maintenance Checklist
• ADA Checklist for Existing Facilities

Benefits of Regular Commercial Building Assessments

Here are the following benefits of regular commercial inspections:

• Preventive Maintenance: Regular inspections can help identify minor issues before they become big problems. You can save money in the long run by avoiding costly repairs. For example, you can easily fix a small leak in a roof when found early, but if left unattended, it can lead to water damage that can cost thousands of dollars to repair.
• Improved Safety: Inspections can also help identify hazards like fire risks or electrical problems. You can help keep your employees, tenants, and customers safe by addressing these hazards promptly.
• Extended Lifespan of the Property: Regular inspection and maintenance can help prevent wear and tear and keep the property in good condition. This can extend the lifetime of the commercial property.
• Improved Cash Flow: With regular inspections, you can address wear and tear in time and maintain the property. This can allow you to charge a premium amount in rent.