Schedules – for when you need a list of defects and the remedy
A schedule is a list, in property terms there are generally 3 types:
- Schedule – wants of repair
- Schedule – dilapidations
- Schedule – condition
Schedules – Wants of Repair
Most commercial leases enable the landlord to serve a Repairs Notice to call for repairs to be carried out by the tenant during the lease to ensure that the landlord’s asset value is maintained. A schedule of wants of repair is sometimes also known as an interim dilapidations schedule insofar as it can be served during the lease rather than at the end of the lease.
- if you are a landlord, check your lease and get one,
- if you are a tenant, then you may need representation if your landlord is unreasonably requiring more than repairs.
The repairs required will depend on the repairing covenant agreed between the parties as set out in the lease and any schedule of condition documenting the condition of the property day 1.
Tips for landlord’s
- a well-maintained property will value higher than a poorly maintained one,
- reminding a tenant of their responsibilities during the lease will encourage them to hand back a well maintained property at the end of the lease.
- ensuring a property is maintained during the lease reduces the risk of voids and lengthy dilapidation negotiations at the end of the lease.
A Schedule of Wants of Repair sets out the defect and calls for the repair usually quantifying materials and quantities.
Initial lease assessment free of charge:
Landlords can ask a Ringley Chartered Surveyor to read their lease and advise whether their dilapidations costs are recoverable.
A schedule of dilapidations should be served at the end of the lease and can either call for the tenants to carry out repairs or can seek a money settlement instead. A dilapidations schedule, often called a “Scott Schedule” interprets the repairing covenant, states the repair required, quotes the specific lease clause that enables the landlord to call for the repair and prices the work required.
- if you are a landlord, get one prepared before your tenant leaves,
- if you are a tenant, dig out the schedule of condition you should have got independently prepared before you signed the lease as this will be an invaluable tool in negotiations to ensure that you don’t get lumbered with having to give back something substantially different from what you took on day 1 and get representation early else you might face a landlord’s claim for rent to cover a void period.
The repairs required will be determined by the repairing covenants set out in the lease and brought to meaning by the condition of the building and ever moving caselaw which interprets the various words. Generally there are 3 levels of repairing covenants:
- To put in repair
- To well and substantially repair and maintain
- To keep in repair
For landlords: don’t leave it until the end of the lease, strength of covenant and condition determines the value of your property, set the tone by being a professional landlord who understands the tenants repairing responsibilities and enforces these.
For tenants: Watch out for covenants requiring you …. “to put in repair” as this can require you to give back something substantially different from the condition of the property you took on day one. To be best protected don’t take on a lease without having a schedule of condition
Schedule – condition
A schedule of condition is usually prepared by the tenant about the time the lease is entered into and should be ‘agreed’ between the parties and documented in the lease. The purpose of a schedule of condition is to make it easy to deal with end of lease dilapidations because there is an ‘agreed’ and documented position as to the condition of the building when the lease started.
Whether a collapsed drain needs relaying, a wall damp proofing, an under pavement vault reinforcing or a property converted you will require a specification of works. A properly drafted Specification of Works ensures that building regulations are being complied with and that building costs are controlled.
Proper specification of works and repairs is the only way to ensure that all tenders and quotes received are on a like for like basis to aid proper decision making. It is our Chartered Surveyor’s or Chartered Engineer’s job to specify all associated works and consider hidden defects as well and provide for in-contract negotiation of extras by pricing quantities, methods and materials so that extras can be agreed pro-rata.
Our job as Contract Administrator is to bring the contract in on budget. Where funds are limited we can advise on alternative materials, access methods, useful life left in various building components and the risks of omitting certain items. Our aim is to minimise risk, manage costs and maximise value for the building.