The Fee that gives the best Value for your Money?

Paul Wells

23rd July, 2012.

The Fee that gives the best Value for your Money?

By Paul Wells, Director of Building Surveying

And the winner is…… 

 

 

Not quite the most interesting competition but when it comes to commercial property it’s something debated around the office and with clients as well.

The winner is ……… a Schedule of Condition!  For those not aware of what a Schedule of Condition is; it is generally a descriptive and photographic record of a property’s condition usually taken at the commencement of a lease by an ingoing tenant.

The purpose of a Schedule of Condition is to fairly record the initial condition of the property at the start of a new lease.  At lease expiry, the tenant is then obliged to return the property to the landlord than in no worse state than at the start of its occupation.  Not only is this fair, as the tenant doesn’t become responsible for historic disrepair prior to its occupation; but it also gives both parties an evidential record of the state of repair at the outset, and should therefore make dilapidations discussions at the end of the lease clearer.
 
A Schedule of Condition should cover the whole fabric of a building both internally and externally and depending on the type of property and the sort of repairing liability that the tenant is being asked to abide by potentially other elements as well.  On a warehouse or industrial unit full access to all exposed areas is required with this generally necessitating roof access via scissor lifts or similar.

So, why is a Schedule of Condition the best value for money?  Well from both mine and the building surveying team’s experience, the ‘payback’ or rather the money that is saved, at lease expiry by virtue of having a Schedule of Condition formally agreed and annexed to the original lease documentation can be immense.

For older buildings, or those not in “perfect” condition; I would urge all potential tenants to seriously consider and take professional advice on whether to commission a Schedule of Condition.


If you need advice on any aspect of repairing liabilities or if you need a Schedule of Condition then contact one of the Building Surveying team.

Disclaimer: The views expressed within this article or weblog (‘blog’) are the personal views of the contributors and authors only and do not necessarily reflect the views of any named companies or their employees.