So, what is a schedule of condition? It is a written and photographic record of the condition of a building at a fixed point in time, usually prepared by a chartered surveyor just before a lease starts or before building work begins nearby. Its job is simple: if there is ever an argument about what state the property was in on that date, the schedule answers it. For tenants it can cap exposure to dilapidations claims; for landlords and adjoining owners it provides evidence of the starting point.
This guide explains what a schedule of condition contains, who benefits from one, how it works alongside a lease, and the mistakes that can make it worthless.
What a schedule of condition records
A schedule of condition is a factual record, not an opinion on value or a list of recommended repairs. A surveyor walks through the property, room by room and elevation by elevation, and describes what is there and what condition it is in.
A thorough schedule typically covers:
- roof coverings, chimneys, rainwater goods, walls, windows, doors and any external areas that form part of the demise
- ceilings, walls, floors, joinery, fixtures and decorations in each room
- visible heating, plumbing, drainage and electrical installations, recorded as seen (they are not tested)
- defects such as cracks, staining, damp patches and broken or missing items, and general wear and tear
- numbered photographs, so each written entry can be matched to its image.
The more precise the descriptions, the more useful the document is years later. “Carpet worn” helps nobody; “carpet tiles worn with visible fraying at doorway, approx. 30% of floor area” does.
How it differs from a building survey
A schedule of condition should not be confused with a RICS Level 3 building survey or a RICS Level 2 survey. Those surveys are designed for buyers: they diagnose defects, explain causes and recommend what to do. A schedule of condition records what exists so it can be compared later. Some clients need both, so it is worth agreeing the purpose with your surveyor at the outset.
Who should get a schedule of condition?
Commercial tenants taking a repairing lease
Tenants gain the most. Under a full repairing and insuring lease you may be liable to hand the building back in good repair, even if it was in poor condition when you moved in. That is because a covenant to “keep in repair” has long been interpreted by the courts as including an obligation to put the premises into repair first (the principle from Proudfoot v Hart, 1890).
A schedule of condition, properly referred to in the lease, can limit your repairing obligation to the condition recorded at the start. Without it, you may find yourself paying to fix defects that pre-date your occupation. If you are about to sign, read our full repairing and insuring lease checklist.
Landlords letting a property in good order
Landlords benefit too. If a building is let in good condition, a schedule gives you clear evidence of that condition when you later assess dilapidations. It reduces the scope for a tenant to argue that defects were already present, and it gives your dilapidations surveyor a reliable baseline.
Buyers of tenanted investments
Properties are often sold during a lease, for example as a standing investment. A new landlord, or a tenant dealing with a new landlord, can find it hard to establish the original condition years later. A schedule prepared at lease commencement travels with the paperwork and removes much of that uncertainty.
Developers and neighbours before building work
Before demolition, excavation or construction next to an existing building, a schedule of condition of the neighbouring property records any existing cracks and defects. If damage is alleged later, both parties can check the building against a dated record, not against memory. Our how we prepare a schedule of condition shows how this works in practice.
Why the lease wording matters
A schedule of condition only protects a tenant if the lease refers to it. The documented condition can be very difficult to rely on if the lease does not say that the tenant’s obligations are limited by reference to it. Ask your solicitor to:
- Annex the agreed schedule to the lease (or identify it precisely).
- Amend the repairing covenant so the tenant is not obliged to put the premises into better condition than shown in the schedule.
- Check other clauses that could undo that protection.
That last point is often overlooked. If the schedule shows the premises in poor decorative order, but the lease also says “the tenant will decorate in the last six months of the term”, the decoration clause may cut across the schedule and dilute its benefit. The same applies to reinstatement clauses and yielding-up provisions. A surveyor with dilapidations experience can review the lease and schedule together.
When to commission a schedule of condition
Timing is critical. The schedule should record the condition as close as possible to the date of the lease or the start of works, and both parties should ideally agree it before completion. If you have already moved furniture and stock in, parts of the building may be hidden and harder to record.
For a practical checklist of what to do before the surveyor arrives, see our guide to preparing for a schedule of condition.
Common mistakes that weaken a schedule
- No reference in the lease – the schedule sits in a drawer and has no contractual effect.
- Vague descriptions – general comments such as “fair condition” are open to interpretation.
- Poor or unreferenced photographs – images that cannot be linked to a location or entry carry little weight.
- Not agreed by both parties – an unsigned schedule is easier to challenge.
- Lost copies – the schedule may be needed 10 or 15 years later. Keep secure digital and paper copies.
How a schedule of condition helps at the end of a lease
When the lease ends, the landlord may serve a schedule of dilapidations setting out alleged breaches of the repairing and reinstatement obligations. The schedule of condition is then compared, item by item, with the condition on exit. Where a defect was present at the start and the lease limits the tenant’s obligation to that condition, the tenant should not have to pay to remedy it. Fair wear and tear, if excluded by the lease, can be distinguished in the same way.
For the wider picture of protecting your business across the whole lease term, read FRI lease tenant protection.
Frequently asked questions
Who pays for a schedule of condition?
Usually the party who wants the protection, which is most often the tenant. Who pays can be negotiated as part of the heads of terms.
Does a schedule of condition need to be agreed by the landlord?
It is strongly advisable. A schedule agreed and annexed to the lease is far harder to dispute than one prepared by one party alone.
Is a schedule of condition the same as an inventory?
No. An inventory lists contents. A schedule of condition records the condition of the building fabric, finishes and fixtures, supported by photographs, and is intended to be relied on in a dispute.
Can I get a schedule of condition after I have moved in?
You can, but it is less useful, because the landlord may argue that damage occurred after you took occupation. Commission it before you sign or take possession wherever possible.
Speak to a chartered surveyor
Lansdown Associates is a firm of RICS regulated chartered surveyors with offices in Liverpool, Manchester and London, preparing schedules of condition for tenants, landlords and developers nationwide. Call 0151 374 0905 or email office@lansdownassociates.co.uk to discuss your property.
