Becoming a Commercial Real Estate Inspector
Becoming a Commercial Real Estate Inspector
Inspection of commercial properties is essential in assuring buyers their purchases are safe. They also reveal the true cost of owning or operating such properties.
Success in any field requires possessing certain character traits that set it apart, including an enthusiasm for its industry, an entrepreneurial drive, and the ability to work well with others.
Qualifications
As a commercial real estate inspector, your clients will typically consist of businesspeople or investors. Their main concern will likely be whether a property can offer them viable returns in the form of income in the future – these factors differ considerably from residential transactions.
An intensive commercial inspection typically includes an exhaustive walk-through of a property to assess its roof, electrical systems, plumbing and structural integrity as well as its records and documents like maintenance histories, blueprints building code violations lease agreements or Certificates of Occupancy. Professional inspectors may also interview people associated with it in order to gain a more complete picture of its condition.
There are two primary types of commercial inspections, known as PCA and BIS inspections. A PCA provides less extensive evaluation, typically required by lenders or insurance companies during real estate transactions, whereas a BIS meets CCPIA minimum standards to conduct an in-depth evaluation of any property being purchased or rented out.
Certifications
Being a commercial inspector depends on your skill set and experience. There are various routes you can take – starting your own inspection business is one option or joining an established firm that specializes in commercial inspections is another – although residential home inspectors may transition easily into this sector.
An experienced inspector will conduct more than just physical assessments when inspecting commercial properties, however. He or she will review various documents related to them – building plans, citations, survey records, fire safety system reports, maintenance histories and evacuation plans may all provide vital insights into true costs of ownership that help investors or buyers make informed decisions regarding purchases.
At first, an inspector will survey the exterior to identify cracks or damage; once inside they will check code compliance as well as potential risks or hazards before compiling their findings into a property condition report.
Fees
Commercial property inspections can save buyers money by helping them avoid buying real estate that requires expensive renovation, as well as helping avoid violating zoning laws or environmental regulations. Unfortunately, this kind of inspection can be expensive – often the seller must arrange and pay for this type of assessment.
Costs associated with commercial inspections can differ widely depending on the size and complexity of a property. While some inspectors charge a flat fee per inspection, others utilize pricing models which involve price per square foot – an approach commonly employed when servicing specialty properties such as medical office buildings.
Commercial inspectors serve their clients by equipping Pre Purchase Building Inspections them with the knowledge required for successful transaction negotiations. This can be an arduous task due to numerous considerations relating to age and use of buildings.
Experience
Real estate investors, insurance companies and portfolio lenders frequently hire commercial property inspection teams in order to assess the condition of potential purchases before making their decision. They should also inquire as to any major repairs that might need to be performed, which will give them more information to decide whether purchasing the building makes financial sense. AkitaBox equips real estate professionals to make informed, data-driven decisions regarding their buildings and protect net operating income by offering a full picture of a building’s capital expenditure needs in the future. Betsy, content manager at AkitaBox, enjoys writing blogs, whitepapers and emails about all things facilities management – as well as running 5ks and snuggling her dog when not writing!
