What to Have Ready for a Commercial Appraisal: Checklist, Rent-Roll Template and Engagement Explainer
The documents, a template to fill in, and what you are signing.
By Ashita Chandra, AACI, P.App — Director of Valuations
A commercial appraisal moves at the speed of its documents. The appraiser needs the rent roll, the leases, two or three years of operating statements, the tax bill, a survey or site plan if one exists, and the purpose and intended users of the report; with those in hand the site visit can be booked and the 5–10 business-day clock starts. This page lists everything by property type, gives you a rent-roll template to fill in, and explains what the letter of engagement commits each side to.
Checklist by property type
Why: The starting point of the income approach.
Why: Terms, recoveries and options change the income the appraiser can rely on.
Why: Shows actual expenses and how stable the income is.
Why: Shows expected expenses for the year of the value.
Why: Taxes are a major operating expense and a check on value.
Why: Insurance cost is an operating expense.
Why: Confirms the land area, boundaries and easements.
Why: Rents and comparisons are measured per square foot.
Why: Explains the building's condition and remaining life.
Why: Contamination can affect value and lender acceptance.
Templates
The appraisal request needs six details, sent through the quote form:
- The property address.
- The property type and size.
- Who will rely on the report.
- The purpose.
- Current or retrospective value, and the date.
- Your deadline.
What the letter of engagement means
Purpose. Why the value is needed: financing, a sale, a tax appeal, an estate. The purpose shapes the scope and the report.
Intended users. The people entitled to rely on the report. Anyone not named, such as a second lender, needs a reliance letter or a new report.
Effective date. The date the value applies to: today, or a date in the past.
Scope of work. What the appraiser will inspect, research and analyse, and which approaches to value apply.
Fee and delivery date. The fixed fee and when the report arrives, usually 5–10 business days after the site visit. See what a commercial appraisal costs and the appraisal process.
Assumptions and limiting conditions. What the appraiser takes as given, such as clear title or accurate information from the owner, and the limits on how the report can be used.
If the purpose changes. A report written for one purpose or user cannot simply be reused for another. If the purpose changes after signing, the engagement is amended and the scope, fee or date may change. See bank appraisal vs private appraisal.
For lawyers and accountants
For a retrospective valuation for an estate, a capital-gains filing or a buyout, name the effective date, the intended users and the purpose in the request, and send the documents that existed at that date: the rent roll, leases and operating statements as they stood then, not as they stand now. See commercial property valuation.
Commercial appraisal checklist FAQ
What documents do I need for a commercial appraisal?
The rent roll and leases, two or three years of operating statements, the tax bill and assessment notice, a survey or site plan if one exists, and the purpose and intended users of the report. The checklist above lists the rest by property type.
What is a rent roll?
A list of every unit or tenant with area, lease dates, base rent, additional rent and options. It is the starting point of the income approach.
What is a letter of engagement?
The agreement that sets the purpose, intended users, effective date, scope, fee and delivery date before work starts. Both sides sign it.
Who are the intended users and why does it matter?
The people entitled to rely on the report. A lender, lawyer or court not named in it cannot rely on it without a reliance letter or a new report.
How long after I send the documents is the site visit?
Usually within days of the letter of engagement being signed; the report follows, usually 5–10 business days after the site visit.
Can I use the template for a lender?
Yes. Lenders ask for the same rent-roll information; the template holds everything an appraiser or a lender needs.
AACI, P.App
Ashita Chandra is an AACI-designated appraiser and Director of Valuations at Aion Appraisals & Consulting, preparing commercial property appraisals across Ontario.
Verify this designation in the Appraisal Institute of Canada directoryNeed the number a lender will accept?
A CUSPAP-compliant appraisal signed by an AACI-designated appraiser, usually 5–10 business days after the site visit.