People often associate a “Property Condition Report” (PCR) with residential leasing. Not so. At HKC Property Consultants we will always recommend to our clients that they activate a strong and binding PCR for their commercial property interests. It resolves many a dispute between owner and tenant, thereby protecting your valuable investment.
Interpretation
Often what a tenant deems as “good condition” upon departure of the property may well fall short of the reality. Tenants often argue that they have left the premises in better shape than when they found it, but we all know that this is not always the case. To avoid such discrepancies in interpretation, a PCR will ensure that a full report is recorded at the time of tenure, complete with photographic validation.
Damage to property is costly and time consuming
Discrepancies can range from the damage caused from a tenant installing an air conditioner and leaving a gaping hole in the wall, to damaged floors, poorly painted wall and ceiling surfaces, damaged fittings, fixtures and windows, removal of signage (this is all too common), as well as garden damage or obstructions to access points and entries. This could extend to utilities such as water fittings being unmaintained and requiring costly replacement parts. This list goes on!
The other major advantage to a binding PCR is that it saves you time. And time is of course money. Each party knows where they stand at the start of the agreement and this will then allow for a more effortless flow when the time comes to assess the property’s condition at the end of the lease arrangement. Any potential property dispute can easily be intercepted by simply referring to the PCR.
A small step for worthwhile protection
Creating a robust PCR is a small but important step towards securing a healthier duty of care towards your property by tenants. It saves disputes at the end (when you really don’t want or need this), facilitates the process more efficiently and saves you time and money. Plus, we take care of the process for you. Remember Commercial Property Management is not just a rental collection service. We offer full commercial property management services ranging from lease administration to budgeting of outgoings.
Need further advice? Talk to the experts at HKC Property Consultants. We’re happy to help with your Property Condition Report (PCR) and all your other commercial property needs. Call now 0404 398 663.
By: Hiona Kristiansson
Hiona Kristiansson has worked in the commercial property management industry for 20 years and has complete knowledge of the complex legislation governing commercial property leasing and management. Hiona's extensive experience in managing a range of asset classes includes CBD office buildings, industrial warehousing and retail tenancies. She is a Licensed Real Estate Agent and co-founded HKC Property Consultants in a bid to bring a superior level of service to commercial clients (private investors, corporate owners & tenants alike). Having worked both in a consultant role and directly for a major landlord, she has stood on either side of the fence, which gives her a broader perspective and helps achieve positive outcomes for her clients. Find out how Hiona can help you with your commercial or industrial property. Call now for a complementary 30 minute consultation.