Before signing a commercial lease, tenants should make sure they fully understand the repairing liability. It is vitally important that tenants fully understand their obligations in regard to dilapidations, without this consideration they could stand to lose substantial amounts of money.
Every commercial lease that states the tenant must ‘keep the property in good condition and repair’ also implies that they have a responsibility to ‘put the property into good condition and repair’. This could mean that if the tenant signs the lease on a property with a leaky roof they become responsible for its repair.
A Schedule of Condition resolves this problem as it prevents the landlord from demanding that the property be brought up to a higher standard than its initial condition. The evidence set out in a Schedule of Condition can be used to compare the state of the premises at the end of the contract against the condition at the time the lease was signed.