What is a Schedule of Condition in a Commercial Lease?
A Schedule of Condition is a detailed record of a property’s condition at the start of a commercial lease. It typically includes written descriptions, photographs, and sometimes videos to document any existing damage or wear and tear. This document is usually attached to the lease to help protect both landlords and tenants by providing a clear reference point of the condition of the property at the time the lease commenced.
Why is a Schedule of Condition Important?
- Protects tenants from unexpected repair costs – without a Schedule of Condition, tenants may be responsible for returning the property in better condition than when they took possession, leading to costly repairs.
- Clarifies repairing obligations – many commercial leases include “full repairing and insuring” (FRI) clauses, which can place extensive responsibilities on the tenant. A Schedule of Condition helps clarify and limit these obligations.
- Reduces end-of-lease disputes – When a lease ends, landlords may issue a dilapidations claim, requiring the tenant to repair or compensate for damage. A Schedule of Condition provides clear evidence of the property’s original state, preventing unfair claims. This also helps the tenant plan for the end of the lease to ensure the property is left in a suitable condition.
- Benefits both landlords and tenants – While tenants primarily benefit, landlords can also use the document to ensure the property is returned in a comparable condition (excluding normal wear and tear), which can help the landlord let the property to the next tenant.
How We Can Help
At Edward Harte Solicitors, we specialise in commercial property leases across Brighton and Hove, and East Sussex. Our experienced solicitors can help draft and negotiate lease terms that incorporate a legally binding Schedule of Condition, protecting your interests and preventing costly disputes.
Need expert advice? Contact Robert McDonald today to discuss your commercial lease issues.