Dilapidations and Schedule of Condition

A schedule of condition and a dilapidations assessment are closely connected. The schedule records what the property was like at the start of the lease; the dilapidations assessment determines what repair, reinstatement, and decoration obligations the tenant is responsible for at the end. Without a schedule of condition, the tenant may have no reliable way to challenge a dilapidations claim that includes pre-existing defects.

For live service pages, see the schedule of condition service and the dilapidations surveyor service.

How a Schedule of Condition Limits Dilapidations Liability

A schedule of condition prepared at lease commencement, and properly incorporated into the lease, can limit the tenant's repairing obligation to the condition recorded at the start of the term. That means pre-existing defects, historic wear, and earlier damage cannot later be included in a terminal schedule of dilapidations as items the tenant is responsible for.

Without that baseline, the landlord's surveyor can potentially claim for repair of items that were already defective before the tenant took occupation. Disputing those claims becomes much harder if there is no contemporaneous record of what was already there.

When to Instruct Both

The most important time to instruct a schedule of condition is before the lease completes and before the tenant takes occupation. Once in occupation, the position changes — any deterioration from that point forward may be attributed to the tenant unless the pre-existing condition can be established by other means.

• Before a commercial lease on previously occupied premises.
• Before a lease renewal where condition at the previous term commencement is unclear.
• Before occupation of older buildings, industrial units, or premises with a complex repair history.
• Where the lease is full repairing and insuring and the dilapidations exposure at the end of the term could be significant.

What Happens Without a Schedule of Condition

Where no schedule of condition was prepared at lease commencement, the tenant loses a key tool for challenging a dilapidations claim. The landlord's surveyor will inspect at lease end and prepare a schedule of dilapidations based on the condition found at that point. Without a clear record of what was pre-existing, the tenant must rely on other evidence — historical photographs, maintenance records, or expert opinion — to establish what was already there. That evidence is typically weaker, harder to obtain, and more expensive to deploy.

In some cases, the absence of a schedule of condition means a tenant accepts or settles a dilapidations claim that could have been significantly reduced had the condition been evidenced at the start.

The Role of the Lease Wording

A schedule of condition only provides protection if it is correctly referenced in the lease. The repairing obligation needs to be qualified so that the tenant's liability is limited to maintaining the property in the condition recorded in the schedule, not to a higher standard. Without that lease clause, the schedule may exist as a document but have limited contractual effect.

Instructing a schedule of condition before lease completion also allows the document to be reviewed and the lease wording to be checked or negotiated before the agreement is signed. After completion, it is usually too late to change either.

For more detail on costs and scope, see the schedule of condition cost guide and the schedule of condition report guide.