A Schedule of Condition is most commonly prepared at the beginning of a commercial lease, but its importance can continue until the lease expires.
When the tenancy comes to an end, the original Schedule can be used as evidence when considering the tenant’s obligations and any dilapidations claim.
Why does the original Schedule matter?
The Schedule establishes a record of the property’s condition at the start of the lease.
At the end of the tenancy, the property’s condition can be considered against that original record and the requirements of the lease.
This can help distinguish between:
- Defects that were already present
- Deterioration occurring during the tenancy
- Damage caused by the tenant
- Repairs or alterations undertaken during the lease
The lease itself remains fundamental. A Schedule of Condition does not override the tenant’s contractual obligations.
Can the landlord still make a dilapidations claim?
Yes. A Schedule of Condition does not automatically prevent a dilapidations claim.
The tenant’s liability will depend upon the terms of the lease, the condition of the property and the relevant circumstances at the end of the tenancy.
However, where the lease incorporates a Schedule of Condition, it can provide important evidence when assessing the extent of the tenant’s obligations.
Should the tenant have another survey?
It can be sensible. As the lease approaches expiry, a tenant may benefit from obtaining professional advice on its potential dilapidations exposure.
This can identify repairs, reinstatement or other matters that may need to be addressed before the tenant leaves.
Where a Schedule of Condition exists, the surveyor can also consider the original condition when assessing the current position.
What if the property is already in poor condition?
This is precisely why a Schedule of Condition can be valuable.
A tenant should not assume that accepting a property in poor condition means accepting responsibility for correcting every defect at the end of the lease.
The answer depends upon the lease and the evidence available.
Stokemont’s advice
A Schedule of Condition is not simply a document to be filed away once a lease is signed.
For a tenant, it can remain an important piece of evidence throughout the lease and when dilapidations are assessed at the end.
If you are approaching the end of a commercial lease, Stokemont can review the property’s condition and advise on potential dilapidations matters. You can also obtain a fixed cost instant quote via our website!
