For tenants taking a new commercial lease
Schedule of Condition: Protect Yourself Before You Sign
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 4 min read
The short answer
A schedule of condition is a written and photographic record of the state of premises when a lease starts. Attached to the lease, it limits the tenant's repair obligation to that state, which can cut a dilapidations claim years later.
- Record every room, the roof, the facade and the building services before you sign.
- Photograph and date everything, with a plan showing where each photo was taken.
- Attach it to the lease and refer to it in the repairing covenant, or it may not limit anything.
- Keep a copy with the lease and every licence for alterations until the lease ends.
A schedule of condition is a record of the state of premises at the start of a lease, in words and dated photographs. It costs little and takes days. Years later, it can be the difference between a small dilapidations bill and a large one.
The reason is simple. Many commercial leases ask the tenant to keep the premises in repair. Without a record, you may be asked to hand back premises in better repair than you took them.
This guide explains what a schedule of condition records, how to attach it to the lease and how it protects you at the end. We give dilapidations support for tenants from the first walk-round to the final handback. Signing soon? Talk to us before you sign.
What a schedule of condition records
A schedule of condition is a factual snapshot. It does not judge who is responsible. It just records what is there and what state it is in, room by room and element by element.
| Area | What to record |
|---|---|
| Structure and roof | Cracks, leaks, staining, roof coverings, gutters |
| Facade and windows | Brickwork, cladding, frames, glazing, seals |
| Floors | Screed, raised access floor, coverings, damage |
| Walls and ceilings | Finishes, ceiling grid and tiles, damp, cracks |
| Doors and joinery | Doors, frames, ironmongery, fixed joinery |
| Building services | Heating, cooling, ventilation, lighting, power, fire alarm, lifts |
| Common parts | Stairs, toilets, plant rooms, car park, if in the lease |
Each entry gets a short description and a photograph. A plan shows where each photo was taken. Everything is dated.
Building services deserve extra care. Ageing air conditioning or lighting is often the largest single line in a dilapidations claim. Record its age, its working state and any known faults.
Photographic schedule of condition
A photographic schedule lets the pictures carry most of the record. Short notes explain what each photo shows. It is faster to prepare than a long written schedule and harder to argue with.
Make it useful years later:
- Number every photo and mark the number on a floor plan.
- Show context in a wide shot, then the defect in a close-up.
- Date and sign the schedule, and keep the original files.
- Cover hidden areas such as ceiling voids, risers and plant rooms.
- Store it with the lease where your finance and property teams can find it.
Video walk-rounds are a helpful extra. They show the whole space in a way single photos cannot. Keep them alongside the written schedule, not instead of it.
Attaching it to the lease
A schedule of condition only limits your repair obligation if the lease says so. Agree it with the landlord, attach it to the lease and refer to it in the repairing covenant.
Typical wording says the tenant need not put the premises into better condition than shown in the schedule. Your solicitor drafts it. Your job is to make sure the schedule is complete and agreed before completion.
Three things often go wrong:
- the schedule is prepared but never attached to the lease;
- the lease refers to it, but the landlord never approved the final version;
- the schedule covers the inside but not the roof, facade or services the lease makes yours.
Agree in the heads of terms who prepares the schedule, who pays and who signs it off.
How it limits dilapidations later
At the end of the lease, the landlord sends a schedule of dilapidations. It lists the breaches, the works it says are needed and their cost. The tenant answers it item by item.
A good schedule of condition answers many lines on its own. If a defect was recorded at the start, it is not a breach you caused. If a finish was already worn, you are not liable to make it new.
| Schedule of condition | Schedule of dilapidations | |
|---|---|---|
| When | Before the lease starts | At or near the end |
| Prepared for | Usually the tenant | The landlord |
| What it records | The state of the premises | Alleged breaches and their cost |
| Effect | Limits the repair standard | Starts the claim |
The law adds its own limit for repair. Section 18(1) of the Landlord and Tenant Act 1927 caps damages at the fall in the value of the landlord's interest. A schedule of condition works alongside it, by shrinking what counts as a breach in the first place.
Alterations need their own record
A schedule of condition records the premises as let. Your fit-out comes later. Keep each licence for alterations, the as-built drawings and photos of the work. At the end, they show what you added and what the lease says must come out.
We recently hired Craftex for a commercial office fit-out project in Central London, and overall, we’re really happy with the result. There was a delay on our side with a custom glass partition supplier, but the Craftex team managed the construction schedule very professionally and kept everything on track. Their guys worked clean, respected our workspace and IT setup, and kept the site tidy throughout. If you're looking for a reliable office refurbishment company in London, I’d definitely recommend Craftex. Would use them again without hesitation.
When you move to new premises
The best time to think about your next handback is before you sign. Walk the space with the people who will fit it out and, one day, strip it out.
We look at three things on a new lease:
- The condition today. What must be recorded, and what will the landlord want back?
- The fit-out plan. What can be built so it comes out cleanly at the end?
- The exit. What reinstatement will the lease and licences ask for?
For Drake's railway arch in Bethnal Green, the five-year lease meant nothing could be fixed into the arch. We built partitions, ceilings and services on their own self-supporting frames, so the exit is planned in from day one.
One team, one point of contact: our own RICS-qualified quantity surveyor reviews the condition and the lease. The same team fits out and later hands back. Taking a new floor? Talk to us before you sign. Answering a landlord's schedule already? Our guide to the Scott schedule shows how to respond line by line.
Before you sign a new lease
- Walk every room, the roof, the facade and the plant.
- Photograph and date everything, with a numbered plan.
- Record the age and state of the building services.
- Agree the schedule with the landlord and sign it.
- Attach it to the lease and refer to it in the repairing covenant.
- Plan the fit-out so it can come out cleanly.
- Keep the schedule with the lease and every licence.
