Detailed Schedules Of Condition For Commercial Properties

In many instances, this detailed report is crucial for legal (lease or contractual) purposes and can be extremely helpful in the event of any disagreements, particularly in preventing or minimising 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 its actual state, then their value will be limited.

Photos alone can only provide a glimpse into the condition of your property. We have encountered numerous instances where property owners have taken pictures of their building without including any detailed descriptions. This oversight can lead to an incomplete assessment of the premises, potentially concealing underlying issues. To ensure a comprehensive evaluation, it is essential to include both visual documentation and written explanations when conducting surveys or assessments on a property.

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 specialises 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 utilising other tools to exclude certain elements altogether, ensuring that you are protected from unexpected costs.

In England & Wales, the standard repairs clause wording in a lease requiring tenants ‘to keep’ the property in good and substantial repair is crucial to understand. This legal obligation means that if, as a tenant, you rent a property in poor condition, you are obligated to return it at the end of your lease in an even better state. This translates into investing time and resources into maintaining and enhancing the property throughout your stay. This legal interpretation carries significant implications for tenants. Therefore, before committing to any lease agreement, it is highly recommended to obtain a detailed surveyor’s report. This step will ensure that you have all the necessary information about the premises' condition and what repairs or improvements may be needed during your tenancy.

While a well-structured SoC can help mitigate this unjust exposure to some extent, it is not a cure-all solution. Please read the article which, in short, explains that the apparent protection afforded by qualifying the tenant repairs lease clause to ‘not having to hand back in any better (or no worse) condition than evidenced by the attached SoC’ often fails in practice for elements of a property which inexorably deteriorate in any event. For instance, what the report shows to be a one-third rotted window sill at lease commencement, ends up being 50% rotted by the end of the lease. As it is impossible to fix just the rot which occurred during your lease so as to meet your contractual obligation, the position at law is that you then have to replace the whole sill (or window) in order to comply. Imagine a similar scenario with a more significant item such as the entire warehouse roof (inexorably advancing cut-edge corrosion)!

Our expert team not only identifies building defects and disrepair before you commit to a lease, but we also provide detailed advice on the most effective solutions to minimise your future obligations. This includes, among other things, preparing Schedules of Condition.