Tuesday 21 July 2015

Leasing a Property?

... Protect Yourself and Your Business!



The term "schedule of condition" is one whose meaning is not immediately obvious. 
In the broadest sense, we could say that it clearly details the condition of a property at the point in which you have taken responsibility for it. 


"SCHEDULE OF CONDITION
A Schedule of Condition will record the condition of the building at that particular time
and may be supported by photographs, sketches and drawings. It may be prepared at
the beginning of a lease or prior to commencement of adjacent construction work or in
connection with litigation."


If you are leasing or renting a property, whether for either your own specific use or for a number of employees, you will be expected to return it in the exact state or repair (in some cases, this should perhaps read "disrepair") as it was given to you. This is a reasonable request and tenants often accept the responsibility by contract without much thought. But one year or maybe even 10 years later, it will be very hard to remember which marks on the floor or holes in the wall were there originally. Most especially if there is a variable number of staff and clients within the building, causing mishaps without your knowledge - possibly without even their own knowledge. And of course, there is always the question of acceptable wear and tear, meaning that the cost of replacement should be charged to the owner and not the tenant.

Whilst everyday life unfortunately does result in minor scrapes and spoils which individually demand little effort to repair, the cost can definitely be daunting if many small items accumulate over time. It´s at this point that disagreements/ confusion occurs.

If you don't have a clear reference document that has been methodically compiled by an impartial professional, it may be impossible to ever ascertain who is right and who is wrong. In these cases, it is often the tenant who takes the fall as they contractually accepted the responsibility of care for the building. 

Dawson Surveyors is a big believer in making life straightforward – most especially business life where every disruption to the working day costs money! Therefore, our Schedule of Condition report is a precise written and photographic examination of the existing condition of the building prior to rental or purchase. We also ensure that any areas that are likely to present problems in the future are highlighted to ensure that reasonable maintenance support is provided by the landlord or current owner, free of charge.

In addition a Schedule of Dilapidation Report is often commissioned by either the landlord or tenant to protect their own interests. Simplifythelaw.co.uk defines a Schedule of Dilapidation as:

"A schedule of dilapidations is a document, normally prepared by a surveyor, which lists the problems with the maintenance of a building which a tenant needs to remedy or account for (dilapidations). A schedule of dilapidations is prepared after the completion of a dilapidations survey and is sometimes known as a ‘Scott’ Schedule.
The schedule should list only the dilapidations for which the tenant is liable and this will vary depending on what the tenant is required to do by the lease."

For more information, please contact Dawson Surveyors today. Our initial advice is free.

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