Dilapidation surveys are an important part of real estate management that property owners should take seriously. Homeowners, business owners, and landlords should all research dilapidation surveys in order to make sure they understand how they work and why they are critical.
A dilapidation survey helps the owner or manager of a piece of real estate determine how much it will cost to fix the maintenance issues associated with that property. For example, dilapidation surveys can provide data about the need for ongoing repairs on roofs, siding, and other exterior features of a structure. Dilapidation surveys may also reveal problems like dry rot or pest infestation inside buildings.
The purpose of a dilapidation survey is to offer information about the current state of the property in question. This information can be used by investors or managers to determine if they want to purchase or continue managing this piece of real estate. A dilapidation survey provides helpful projections on future costs associated with this real estate (e.g., upfront investment plus ongoing maintenance costs).
Dilapidation surveys can be performed and commissioned by individuals and businesses alike. However, it is important to note that a dilapidation survey is not an appraisal nor should it be conducted by real estate professionals who are also licensed appraisers.
The individual or company requesting the survey pays for it as does the property owner. While you may think that sending out a dilapidation survey will cost more than doing nothing, surveys actually help owners save money in the long run by pointing out issues before they become serious problems. By knowing what those issues are ahead of time, managers can budget now for things that will need to be repaired or replaced later on down the road.