Detailed Schedules Of Condition For Commercial Properties

In many instances, schedules of conditions (SoC) reports are crucial for legal (lease or contractual) purposes and can be extremely helpful in the event of any disagreements, particularly in preventing or minimizing issues in potential dilapidations claims under the lease terms. It also plays a vital role in identifying any conditions with a property before committing to a lease agreement.

These detailed records can be presented in a variety of forms, including photographic formats. These are referred to as a Photographic SoC. A Full SoC includes text, along with photos and sometimes video.

These reports can be used when a new lease is entered into, providing a detailed account of the premises’ condition before the lease starts, ensuring that any existing defects and necessary repairs are identified upfront. This proactive approach not only protects both parties involved but also ensures a smooth leasing process by clarifying maintenance responsibilities from the start. Our expert team is prepared to assist you with all your survey needs to ensure a smooth leasing process.

They can also play a crucial role towards the end of a lease agreement. In such instances, it serves to clearly outline the condition of the property, helping to determine responsibility for any necessary repairs or reinstatement at the conclusion of the lease term.

When preparing a SoC, some important elements to include are:

• A clear statement about the purpose of the report
• A record of any pre-existing issues and their extent
• Technical drawings
• Clear details regarding the location and extent of the property and premises
• A general description of the premises construction
• Clear definitions of terms used to describe conditions in the property
• A clear statement of the time of the inspection, as well as what the date was, and weather condition
• Photographs (these are some of the most important materials to be included). Videos as well as panoramas and drone footage can also be helpful
• A written record of the location, nature and condition of each item inspected (inside and out)
• Details regarding any specific tests taken on the property (for example, damp testing)

It is crucial that the photographs accurately depict the property. For instance, if a landlord claims there are issues with the property but the photos taken beforehand do not clearly show their current state, then their value will be limited.

• Photos alone provide a limited view of a property's condition, often missing critical details without written descriptions.
• A thorough assessment requires both visual documentation and written explanations to identify potential issues accurately.

The proper and combined use of both Photos and Text can give much greater weight to the report.

Our expert team at our sister chartered surveying consultancy Raeburn Consulting specializes in negotiating lease terms for commercial and leisure properties across the UK and ROI. This allows us to effectively manage your exposure to excessive repairing liabilities not only by conducting thorough surveys, including high-quality SoC reports, but also by utilizing other tools to exclude certain elements altogether, ensuring that you are protected from unexpected costs.

It is important to remember:

• Repair Obligations in Leases: In England & Wales, tenants are often legally required to return a property in better condition than when they leased it, even if it was in poor condition initially.
• Financial Risk for Tenants: Without proper safeguards, tenants may be liable for costly repairs, including full replacements of deteriorated elements (e.g., windows, roofs).
• Importance of Surveys: A detailed surveyor’s report before signing a lease helps tenants understand their potential repair responsibilities and avoid unexpected costs.
• Role of a Schedule of Condition (SoC): An SoC records the property’s state at lease start, which can limit a tenant’s liability, though it does not fully protect against inevitable wear and tear.
• Landlord Considerations: Landlords benefit from clear lease terms and surveys to ensure tenants maintain the property and cover necessary repairs.