A schedule of condition for an office is one of the cheapest pieces of protection a tenant can buy — and one of the most commonly missed. It is simply a dated record of what the space looked like on the day you took it: photographs and written notes of every surface, finish and item of kit, warts and all. Years later, when the landlord presents a dilapidations claim, that record is what stops you paying to hand back an office in better condition than you were given.
What is a schedule of condition, exactly?
It is a factual document, normally prepared by a building surveyor, that records the state of the premises at a fixed point in time. A good one covers walls, ceilings, floors, doors, windows, WCs, kitchens, lighting, and any mechanical and electrical plant you are responsible for — with dated, high-resolution photographs cross-referenced to written descriptions.
Crucially, it is not a survey and it does not tell you whether anything is defective or dangerous. It only says: this is how it was.
Why does it matter so much for dilapidations?
Most commercial office leases contain a full repairing obligation. Read literally, that means you must hand the space back in good repair — even if it was tired, scuffed or partly worn out when you moved in. A landlord’s dilapidations claim is built on the gap between the condition required by the lease and the condition you actually leave behind.
A schedule of condition changes that arithmetic. When the lease says your repairing obligation is limited so that you need put the premises into no better condition than shown in the annexed schedule, the schedule effectively caps your liability. Any wear that already existed is not yours to fix.
For an SME on a five- or ten-year lease of a tired second-hand office, that cap can be the difference between a modest end-of-lease bill and one running into tens of thousands of pounds.
The wording matters more than the document
This is the part tenants get wrong. Attaching a schedule of condition to the lease does nothing on its own. The lease must expressly link the repairing covenant to it — and the strength of that link is negotiable.
- Strong wording limits repair, decoration, reinstatement and statutory compliance by reference to the schedule.
- Weak wording limits only the repairing covenant, leaving you exposed on redecoration and compliance items.
- Useless wording refers to the schedule for information only — which gives you nothing at all.
Your solicitor should be negotiating this at heads-of-terms stage, not after completion. It is far easier to agree while the landlord still wants you as a tenant.
When should you get one done?
Before you sign, and before you start any works. The schedule has to record the space as handed over. Once your contractor has been in and stripped out partitions or lifted the old carpet, the original condition is gone and cannot be evidenced.
The practical sequence for a new letting is: agree heads of terms, instruct the schedule of condition, negotiate the lease wording around it, complete, then start your fit-out.
How does it interact with your fit-out?
The schedule records the base condition; your fit-out sits on top of it. Both need documenting, because at lease end the landlord may ask you to remove your alterations and reinstate — and the schedule is the reference for what you are reinstating back to.
So keep three things together in one file for the whole term:
- The schedule of condition, with its photographs.
- Your licence to alter and the approved drawings.
- Your contractor’s as-built drawings, specifications and handover file.
That bundle is what your surveyor will need when a dilapidations claim arrives. Tenants who can produce it settle faster and for less.
What does a schedule of condition cost?
For a typical SME office suite in London, expect an indicative range of roughly £800–£2,500 plus VAT, depending on the size of the space and how much plant is involved. Larger or multi-floor premises cost more. Treat that as an indicative range rather than a quote — every building is different.
Set against a dilapidations claim that could easily reach £15–£30 per sq ft on a poorly documented office, it is one of the better returns available to a commercial tenant.
What if you have already signed without one?
You have lost the cap, but not everything. Photograph the space thoroughly now, keep records of every alteration you make and every repair you carry out, and hold on to any pre-letting marketing photographs or agents’ particulars. Contemporaneous evidence still helps when negotiating a settlement, even if it is not built into the lease.
Beem Interiors is a London-based small works, fit-out and refurbishment firm working with SME office occupiers across the capital. If you are planning a fit-out and want the lease-end consequences thought through properly — not just the build — get in touch for a no-obligation chat and an honest, itemised quote. Find out more about our dilapidations and end-of-lease works.
