When taking on a commercial lease, it’s easy to focus on agreeing the rent, negotiating the terms and planning your fit-out. However, one document that can go overlooked is a Schedule of Condition.
Here we look at why having a professionally prepared Schedule of Condition in place before you take occupation can significantly reduce your financial risk when your lease comes to an end.
What is a Schedule of Condition?
A Schedule of Condition is a detailed record of the condition of a property at the start of a lease. It typically includes written descriptions alongside comprehensive photographic evidence, documenting everything from floors, walls and ceilings to roofs, windows, external areas and building services where appropriate.
The report provides an agreed benchmark of the property’s condition on the day the tenant takes possession.
Without a Schedule of Condition, there may be little evidence of what the property looked like when the lease began. Existing defects, wear and tear or ageing building elements could be wrongly attributed to the tenant years later.
Bearing in mind that many commercial leases require tenants to return a property in good repair at the end of the lease, failing to have a record of prior condition can ultimately cost a business thousands of pounds.
The landlord of the property could put in a substantial dilapidations claim, which can sometimes include costs to rectify issues that were present before the tenant ever moved in.
In many cases, these settlements can run into many thousands of pounds, particularly for larger industrial or commercial buildings.
A professionally prepared Schedule of Condition can help avoid these disputes by clearly demonstrating the property’s condition at the outset, providing valuable evidence if questions arise at the end of the lease.
Recent Schedules of Condition
Lea Hough Chartered Surveyors prepares Schedules of Condition for commercial properties across Lancashire, Cumbria, Greater Manchester, Merseyside, Yorkshire and beyond.
During the last two years alone, our surveyors have completed reports for a wide variety of premises, including properties in Blackburn, Burnley, Chorley, Leyland, Longridge, Lancaster, Nelson, Rochdale, Middleton, Burscough, Windermere, Ulverston, Barrow-in-Furness, Southport, Wigan, Preston, York, and Stockton-on-Tees.
These commissions have covered everything from town centre retail premises and business parks to manufacturing units, warehouses, industrial estates, health centres, caravan parks and large-scale waste recycling facilities, demonstrating the versatility of this important service.
Contact Lea Hough
A commercial property lease is often one of the biggest financial commitments a business makes. Spending a relatively small amount on a professional Schedule of Condition at the beginning of that lease can provide invaluable protection years later.
If you’re taking on a commercial property anywhere across Lancashire, Cumbria, Yorkshire, Greater Manchester or Merseyside, Lea Hough’s experienced Building Surveyors can prepare a comprehensive Schedule of Condition to protect your interests from day one. Get in touch today to discuss our services.
