Property Management Blog

Why Performing Commercial Real Estate Inspections Are Important for Sacramento Real Estate

System - Friday, June 5, 2020

Why Performing Commercial Real Estate Inspections Are Important for Sacramento Real Estate - Article banner


Renting out commercial real estate is an excellent way to invest, especially if you have a desirable property and stable tenants in place who are paying rent, following your contract terms, and taking care of your property.

Conducting routine inspections at your commercial property is a good way to limit your risk and ensure everything is running the way you expect it to. If you’re working with a Sacramento property management company, you should expect an inspection at least once a year.

Let’s take a look at why these inspections are so important and what you can expect to gain from performing them.

Safety and Structural Performance

Commercial property isn’t always as pretty as residential real estate, but even if you’re renting out a warehouse or some industrial space, you want to make sure it looks clean, well-maintained, and reputable. An inspection will allow you to take stock from the outside and then get inside to make sure the interior structure is sound and secure.

While you’re outside, take a look at the parking lot, walkways, and steps. This is a good time to note any safety issues. How is the exterior lighting? Is there enough security? All of these things should be on your inspection checklist.

Once inside, make sure there aren’t any trip hazards, electrical issues, or plumbing dangers. Water intrusion will destroy a property faster than anything else, so check for leaks or signs of mold and rot. Discolored walls, soft ceilings, and strong odors should raise some flags.

Make sure the frame of the building is solid, and check the foundation. If there are noticeable cracks in the walls, floors, or ceilings, have them checked out. Do a sweep of the roof with a licensed roofing inspector.

Functions and Systems in Commercial Property

Once you’re sure the structure is sound, inspect your functions and systems. This should start with the heating and air conditioning system. As your Sacramento property managers, we would recommend that the heating and cooling system in your commercial property is inspected and serviced at least annually, and preferably twice a year between the seasons.

You’ll want to check your electrical system as well. Mechanical and plumbing systems also need your attention. Test everything and make sure it works properly and safely. Have your ventilation looked at, and make sure the insulation is protecting your property and conserving energy.

If you have elevators, make sure those are inspected and their certificates up to date.

Managing Your Commercial Tenant Relationships

terms of your rental contractThese inspections are also a good opportunity to touch base with the tenants who are running businesses out of your commercial space. Find out if they have anything to report or discuss. Make sure they seem to be following the terms of your rental contract, and give them plenty of notice before you arrive for your inspection so they can be prepared. Working together will ensure your commercial investment continues to perform well.

These are just a few of the things you should be looking for during a commercial real estate inspection. It’s a good idea to inspect any property before you buy it, and then to do routine inspections after the deal is closed.

We can help with inspections or any of your Sacramento property management needs. Please contact us at Titan Property Management for more information.