A schedule of condition survey is generally commissioned before the signing of a lease in order to determine the condition of the building so that any existing defects and their repair costs are identified prior to any commitment being made.
The schedule of condition survey includes a report on the condition of the building together with notes concerning potential future defects that might need attention.
Commercial leases usually stipulate that the tenant is responsible for any repairs during and at the end of a tenancy, so it is vital that you fully understand your potential liabilities before signing your lease.
Often, a schedule of condition survey can be used to negotiate with your landlord to have immediate defects corrected prior to your taking over the lease and thus save you considerable sums of money.
For example, if you are taking over an existing lease, the chances are that you will inherit the repair liabilities from the outgoing tenant.
A properly prepared schedule of condition survey from Edgeworth Street, properly agreed with the lessor, will in most cases, limit your liabilities to future deterioration only.
At the end of your lease, you will need a dilapidation survey in order to counter any dilapidation claim made by your landlord.
Condition Survey Costs
Condition surveys are costed according to the complexity of the property, so there is no standard charge.
Our own approach to producing a schedule of condition is to compile a meaningful register of photographs that will adequately record the true condition of the property (and it’s grounds) in a way to counter an aggressive landlord’s dilapidation claim at the end of a lease.
The longer the lease, the more detailed the schedule of condition should be, simply because buildings deteriorate over time.
As long as you maintain the property in accordance with the terms of your lease, a schedule of condition will pay enormous dividends when you come to vacate the premises.
When a large industrial unit was vacated by a manufacturer at the end of their lease in 2007, we were asked to conduct a dilapidation survey on behalf of the landlord.
When initially signing the lease some 15 years ago, the tenant saved money by having a very simple schedule of condition carried out, consisting of a few general photographs of the building and virtually no commentary.
At the end of the lease, we were able to submit a successful dilapidation claim for in excess of £300,000, because the schedule of condition presented by the tenant was insufficiently detailed.
By spending a little bit more that the start of their lease, the tenant could probably have saved at least 50% of their dilapidation claim.
By implementing a planned maintenance programme to meet the terms of their lease, they could have saved considerably more.
There are many ways to save money when leasing commercial property, but cutting back on a schedule of condition survey should not be one of them.
A good schedule of condition will pay dividends at the end of your lease.
Whether you are a commercial landlord, agent or tenant, you are assured of a prompt and professional response to your enquiry when you call 0121 711 7110