A Schedule of Condition can potentially save a commercial tenant significant expense when a lease comes to an end.
The reason is straightforward: it provides evidence of the condition of the property when the tenant took occupation.
What happens without one?
Many commercial leases place repairing obligations on the tenant.
If the property is in poor condition when the lease begins, but there is no reliable record of that condition, the tenant may later face difficulty demonstrating that particular defects were pre-existing.
A landlord could potentially seek to recover the cost of putting the property into the condition required by the lease.
A properly prepared Schedule of Condition gives the tenant evidence against which the property’s condition can be compared.
What can it protect against?
Depending upon the lease wording, a Schedule of Condition may help establish that matters such as:
- Existing roof defects
- Cracking
- Dampness
- Deteriorated finishes
- Damaged flooring
- Defective windows
- Existing external deterioration
were present before the tenant occupied the property.
It does not, however, remove the tenant’s repairing obligations altogether.
Is every Schedule of Condition the same?
No. The quality and detail of the document matters.
A brief collection of photographs may provide considerably less useful evidence than a properly prepared survey recording the condition of the relevant building elements in sufficient detail.
The Schedule should also be considered alongside the repairing obligations contained within the lease.
When should I get one?
Before entering into the lease.
Ideally, the survey should be undertaken while the property remains vacant or before the tenant’s occupation, allowing the surveyor to inspect as much of the property as reasonably possible.
Stokemont’s advice
A Schedule of Condition is relatively modest in cost when compared with the potential financial exposure associated with commercial repairing obligations.
It is not a guarantee that a tenant will have no dilapidations liability, but it can provide valuable evidence when the condition of the property is subsequently considered.
If you are negotiating a commercial lease, consider obtaining a Schedule of Condition before the lease is completed.
If you require a Schedule of Condition for your commercial property, you can use our instant quote feature to obtain a fixed-fee quotation.
The quote will also provide an indication of our timescales, together with further information on how Stokemont approaches Commercial Schedules of Condition and what you can expect from the inspection and report.
Stokemont provides independent Schedule of Condition surveys for commercial tenants and landlords.
