When finalising a commercial lease agreement, the biggest questions in your mind are likely ‘does this new property suit my business needs?’ and ‘how quickly can I get my new premises ready for Christmas?’. These certainly seem like the most pressing concerns, but there is another question that you should be asking yourself, and that is ‘what is a schedule of condition?’.
Whether you are a landlord or a tenant, it is important to know exactly what a schedule of a condition is, what it involves, and whether you need one before finalising a lease agreement this winter. No matter how keen you are to move into your new premises, arranging this survey will protect your interests both before you move in and further down the line, so don’t let the busy run up to Christmas prevent you from arranging this important survey.
What Is A Schedule Of Condition?
A schedule of condition survey is a full inspection of a commercial building that is done to establish and document the overall condition of the building prior to the start of a new lease. It covers all relevant areas of a property, both inside and out, and whilst these specific areas will vary depending on the unique specifications of the premises, most inspections will examine the:
- Ceilings
- Floors
- Doors and windows
- External walls
- Internal fixtures
- Building structure, including load-bearing elements
And any other areas in order to identify any defects or dilapidations. These findings are then used to form the basis of a schedule of condition report, which is compiled once the survey is complete.
What Is A Schedule Of Condition Report?
This final report contains all the information uncovered by the survey, including the key indicators of the property’s condition and any existing defects. These findings are evidenced by photographs and clear text descriptions so that neither the tenant, nor the landlord, can dispute the accuracy of the findings at a later date.
This is done to provide essential clarity around which defects were already present before the tenant moved in and which are a result of the tenant’s occupation of the property. Any part of the building that already has issues, or could become damaged over the course of the tenancy, should be included in the survey, so bear this in mind if you have any particular areas of concern when viewing the property – and now that you know what is a schedule of condition, it’s time to find out if you need one!
Do I Need A Schedule Of Condition Survey?
Commercial tenants are required to maintain the building that they occupy and to return it in the condition in which it was given to them – to this end, landlords are entitled to require tenants to repair the building before handing it over. However, if a defect was present at the beginning of the lease, then the tenant is not obligated to repair it – provided that either they can offer sufficient evidence to support their claims.
In both cases, the survey report provides independent, impartial evidence to be used in the resolution of any disputes regarding repairs or dilapidations once the lease comes to an end. Any defects that are found after the lease comes to an end that are NOT present in the report ARE the tenant’s responsibility to rectify, whereas any defects that ARE included in the initial report and backed up by photographic evidence are NOT the responsibility of the tenant.
To put it simply, you will benefit from a schedule of condition survey if you are:
- A landlord who is about to finalise a lease with a new commercial tenant.
- Or a tenant who is about to sign a new lease – particularly if you have noticed any existing defects.
Arrange A Schedule Of Condition Survey Today
Now that we have explored what is a schedule of condition, and established whether or not you need one, there is only one question left to answer: how can you arrange one?
Both landlords and tenants are encouraged to arrange a schedule of condition survey to protect themselves from unfair end-of-lease demands, so secure a hassle-free end to your lease today by booking your survey through JTM Building Consultancy.
