Protecting Commercial Tenants with Dunham Hale Chartered Surveyors
A Schedule of Condition (SOC) is a detailed written report supported by photographic evidence, documenting the exact state of repair and condition of a commercial property at a specific point in time, typically just before a lease begins.
This report is usually appended to the lease and plays a vital role in protecting the tenant. It ensures that the tenant is not contractually responsible for putting the property into a better state of repair than was recorded in the Schedule of Condition at lease commencement.
Why Is a Schedule of Condition Important?
Most commercial leases are either:
– Full Repairing and Insuring (FRI) leases, where the tenant is responsible for all repairs and maintenance, including structural elements such as the roof, walls, and foundations.
– Internal Repair Only leases, where the tenant is responsible only for maintaining internal surfaces like walls, floors, and ceilings.
Regardless of lease type, the repairing obligations can carry significant financial risk. Without a Schedule of Condition in place, tenants may find themselves liable for pre-existing disrepair, often leading to costly dilapidation claims at the end of the lease.
Avoiding Common Misunderstandings
At Dunham Hale Chartered Surveyors, we frequently advise clients who mistakenly believe that they only need to return the property in a similar condition to when they took it on. Unfortunately, many commercial leases don’t work that way.
Without a properly prepared Schedule of Condition, tenants may unknowingly agree to restore the property to a condition it was never in, incurring substantial and avoidable costs.
