Pre and Post Lease Assessments

West Coast Inspections protects the owner and lessee by establishing the true condition of the building at the start of the lease.

Property Condition assessments are often carried out when entering into a lease
and at the conclusion of a lease. The PCA can be undertaken on behalf of the
lessee or the lessor, and is sometimes undertaken for both.  For a tenant, a PCA
prior to leasing is just as important as prior to purchasing.  When leasing, the tenant
will likely be responsible for maintaining some or all of the building systems.  If the
building has not been well maintained or there are several systems at the end of
their life expectancies, there is greater risk of unforeseen expenses for the tenant.

The benefits to the tenant include:

- Understanding the condition and level of maintenance of the building structure and
major systems
- Knowing of major repairs or replacements that may be necessary over the term of
the lease and their associated costs
- Validation of representations made by the owner about the property (e.g. the
building has a ‘new’ roof)
- Greater likelihood of meeting lender’s requirements for a loan – may require a PCA
- Greater confidence and peace of mind in decision to lease

The benefits to a building owner:

- A PCA prior to a new tenant moving in establishes the existing condition of the
property, establishing a fair baseline to which the tenant should leave the premises
at the conclusion of the lease.  This helps to protect the owner as the true condition
of the building at the start of the lease has been documented.


At the conclusion of a lease, there is often an obligation for the tenant to undertake
certain repairs, where there has been deferred maintenance.  There may also be
an obligation for the tenant to bring the building back to a ‘base’ condition or
condition the building was in when they moved in.  If there was a prelease lease
inspection report done, this is somewhat easier to establish.

However, if there is no prelease report, or there is disagreement as to what repairs
are required, a post lease PCA will help to resolve the situation and bring a close to
the lease.  In this case, an unbiased report can serve both the owner and the
tenant.  Pre-lease and post-lease PCAs often exceed the ASTM Standard in that
clients will often want to know of costs for repairs that are routine maintenance items
and costs for repairs that are less than the $3,000 threshold provided in the
© 2006 West Coast Inspections all rights reserved