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Why a Schedule of Condition is Essential for Commercial Leases

November 2025

A Schedule of Condition is essential it’s a vital document in any commercial lease agreement. It provides a detailed record of the property’s condition before a tenant takes occupation and is typically attached to the lease. By accurately documenting the state of repair at the start of the term, a Schedule of Condition helps limit a tenant’s repairing obligations and protect both parties from future disputes.

What Is a Schedule of Condition?

A Schedule of Condition report is a professionally prepared document—usually supported by photographs—that records the exact condition of a property prior to the commencement of a lease. It serves as clear evidence of the building’s state at that point in time and is used to determine the extent of repair responsibilities during and at the end of the lease.

The reason a Schedule of Condition is essential is, as without it, tenants risk being held responsible for restoring the property to a condition better than it was at the start of the lease. This can lead to significant—and avoidable—repair costs.

Why You Need a Schedule of Condition

Over the past year, there has been a noticeable drop in the number of Schedules of Condition being commissioned when new leases are agreed. Many tenants, especially those on short-term leases, choose to skip this step or attempt a “DIY Schedule of Condition” with a few photographs. Unfortunately, this informal approach rarely provides enough evidence to protect their interests if a dispute arises.

A professionally prepared Schedule of Condition:

  • Clearly defines the property’s condition at lease commencement
  • Limits the tenant’s repairing obligations
  • Reduces the risk of disputes between landlord and tenant
  • Provides crucial legal evidence if repairs are contested
  • Helps tenants avoid costly end-of-lease dilapidation claims

Protecting Tenants and Landlords

A Schedule of Condition ensures that tenants are only required to return the property in the same condition it was in when the lease was granted—no better, no worse. This limitation must be agreed upon with the landlord at the outset of the lease negotiations. Without this documentation, the tenant may face greater liability for repairs than anticipated.

Courts have dealt with many cases involving unclear or missing Schedules of Condition, underlining just how important this document is in protecting all parties involved.

Expert Help with Your Schedule of Condition

At GJS Dillon, we specialise in preparing detailed and reliable Schedules of Condition for commercial properties. Whether you are a landlord or tenant, our expert surveyors can help you understand your obligations, minimise risks, and ensure your lease is properly protected.

To learn more or request a Schedule of Condition, call us on 01905 676169 or visit www.gjsdillon.co.uk

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