The transition from home inspections to commercial property inspections requires every tool in your tool bag. One such tool could be the effective use of certain pricing methods. A residential inspector might have the confidence to be able to maneuver through almost any type of residential property and any type of system found in those properties, but faced with a large commercial property, they might feel intimidated.
A commercial property inspector just launching their operation might have the skills to navigate the commercial property but not the confidence to actually perform the inspection. Starting out by inspecting smaller and less complex properties can provide both types of inspectors with an opportunity to use these inspections as a launching platform for their emerging commercial business.
There are many methods and models available for inspectors to use to develop a fee for a property inspection. Many residential inspectors use square footage, a percentage of the sale price, the number of bedrooms and bathrooms, or a desired hourly wage as a way to establish their inspection fee. Commercial inspectors use similar methods. They might use square footage, hourly wage, a percentage of the sale price, or a flat fee or flat rate. Let’s discuss the flat fee model.
Gaining Confidence
One of the most important aspects to consider when launching a new commercial inspection venture is gaining confidence. The only way to gain confidence is by performing inspections. The more inspections you perform, the more experience you’ll gain, and the more experience you gain, the more confidence you’ll have, leading to your ability to be comfortable with larger and more complex inspection projects. The challenge is in securing the inspection jobs necessary to gain confidence.
Launching a commercial inspection career with smaller properties allows an inspector to use them as a training tool and springboard for business growth at the same time. These smaller properties have three innate benefits to them.
First, smaller properties, like standalone small businesses within converted residential properties and smaller office or industrial suites, are very approachable. These buildings will often have HVAC systems that are similar to those in residential properties, and they may also have smaller less dynamic electrical systems. Importantly, these jobs may be for clients with similar expectations as those purchasing residential properties. Removing the “scary” aspects of the large commercial property can help boost the confidence of a less experienced commercial inspector.
Secondly, using these smaller properties removes some of the complexities associated with determining an inspection fee. Often, the same referral sources that residential inspectors rely upon are the ones representing the smaller commercial properties. Using a flat fee model can help streamline the research and bidding process because a flat fee model does not require any variables to consider, and that helps make the entire process of bidding the inspection quicker. If the inspector is mired in the complexity of the building or the research process, they could be slow to respond to the inspection request. Oftentimes, being slow to the inspection request could allow the client or the referral source to look elsewhere for another inspector. This is a loss of opportunity.
Lastly, using the flat fee model will help the inspector begin to get traction and confidence, leading to other projects. When the referral sources and clients start to see and experience the level of confidence the inspector shows in working with the smaller, less traditional commercial properties, they will begin to understand the value of the commercial property inspection, rather than a modified residential property inspection they might have previously been a part of.
Conclusion
Flat fee commercial inspections can be a great way for residential inspectors to break into the commercial market. These jobs often come from residential referrals, and it’s important to explain to clients that even small, residential-like commercial buildings need a commercial inspector. By showcasing their knowledge of commercial systems, inspectors can start building a reputation in the commercial space, positioning themselves as more than solely home inspectors.
Over time, this can help residential inspectors build a reputation and gain traction as commercial inspectors, gradually expanding their services and client base in the commercial sector. Ultimately, this pricing model helps residential inspectors who focus their inspection business of residential properties feel less intimidated and more confident when asked to perform a commercial inspection and, eventually, inspect larger and more complex commercial properties.
Article By: Rob Claus, CMI®
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