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Free Schedule of Condition - Why You Need it

What many tenants fail to realise is that when they move out, the landlord will expect the building to be in the same state it was in on the day they arrived. A Schedule of Condition (SoC) or inventory is a way for you to achieve this. It is a factual record of the condition of a property, normally prepared as part of the tenancy contract.

These schedules of condition can be prepared for both residential or commercial buildings and provide a complete record of the condition of the property on a particular date. This can then be used as a benchmark against which its condition can be assessed in the future. Any significant changes can be used to make claims for deposit deductions or more substantial compensation for property damage or dilapidation.

Who creates a Schedule of Condition?

Schedules of Condition may be prepared under the instruction of a landlord, a tenant, an employer or contractor. To give the report greater credibility if there are any claims or negotiations between parties, it is best, but not strictly necessary, for these reports to be carried out by independent experts.

To encourage agreement between all parties, it is often beneficial to choose an expert together so there are no disputes in the future, once the report is completed. This will help to make sure the information is a fair reflection of the condition of the property when it is prepared and not influenced by any of the parties for their own interests.

It is important to remember that identifying a change in the condition of a property does not necessarily attribute blame to anyone in particular in its own right.

When Is a Schedule of Condition Needed?

For commercial or residential property, a Schedule of Condition is recommended when a new tenancy is entered into. This will confirm the condition of the property for both parties.

This report will ensure that any existing defects or damage are recorded and not later attributed to the tenant, as well as making sure that any damage during tenancy is the responsibility of the tenant. When it comes to identifying the cause of various dilapidations, these reports are incredibly useful for giving all parties accurate context for what has happed in the time a property has been rented by the tenant.

A schedule of conditions might also be prepared before construction begins for adjacent properties or structures, or when a building is being extended or refurbished. It will help to protect against claims from nearby property owners about future defects or dilapidations which could be seen as caused by construction or refurbishment work.

What are Dilapidations?

To put it simply, dilapidations represent exit costs for a tenant at the end of their lease. They are costs that can be attributed to returning the property to its original, pre-tenancy state, and may require a number of repairs.

It is advisable to appoint an independent expert to prepare a Schedule of Condition in order to ensure the relevant party is tasked with providing the necessary repair work at the end of a tenancy.

Many tenants often do not realise the extent of change that has occurred to the rental property when they move out. The landlord’s expectation will be to receive the property same state it was at the start of tenancy. Rather than relying on good faith, it’s crucial to carry out the necessary work at the start. At Reports2Go, we provide a free schedule of condition report and tools that can help you avoid unnecessary disputes and disagreements with your tenants.

Gary, 24 July 2020