Quick Answer
A schedule of condition is a written and photographic record of a commercial property’s condition at the start of a lease. A schedule of dilapidations is a list of breaches of the tenant’s repair, decoration and reinstatement obligations, usually served at the end of the lease with the cost of putting them right. The schedule of condition protects the tenant: if it’s attached to the lease, the tenant only has to hand the property back in the condition recorded, not a better one. The schedule of dilapidations is the landlord’s claim. In England and Wales, end-of-lease claims follow the Dilapidations Protocol and are capped at the drop in the property’s value, under section 18 of the Landlord and Tenant Act 1927.
Two Documents, Two Very Different Jobs
They sound almost identical. They’re often mentioned in the same breath. Yet one is written before you move in and the other turns up when you leave, often with a hefty bill attached.
Here’s the simplest way to think about it. A schedule of condition is the “before” photo. A schedule of dilapidations compares the “after” with what the lease says it should look like. If you don’t have a good “before” photo, you have very little to argue with when the “after” arrives.
In this guide, our RICS-regulated surveyors cut through the jargon. We explain what each document does, when you need it and how it protects you, whether you’re the landlord or the tenant.
For the full picture on claims, costs and the end-of-lease process, see our complete guide to dilapidations.
What Is a Schedule of Condition?
A schedule of condition is a factual record of a property’s condition at the start of a tenancy. It’s prepared before the tenant moves in, usually by a chartered surveyor, in written and photographic form.
Its power comes from the lease. If the lease says the tenant’s repair obligations are limited to the condition shown in the schedule, the landlord can’t ask the tenant to fix defects that were already there. Without that link in the lease, the schedule is just a set of photos.
What should a schedule of condition include?
A thorough schedule covers the whole property, room by room and element by element:
- The structure and exterior: roof coverings, gutters, walls, windows and doors
- The interior: floors, walls, ceilings, decoration and finishes
- Services: heating, lighting, electrics, plumbing and any lifts or air conditioning
- External areas: car parks, yards, fencing and landscaping
- Dated photographs of every defect, cross-referenced to the written notes
The more detail it contains, the more useful it is years later. “Ceiling in fair condition” is far less helpful than “water staining to two ceiling tiles in the north-east corner, see photo 14”.
Who prepares it, and who pays?
Either side can commission it, though tenants usually do, as they benefit most. The cost is normally borne by whoever commissions it. Whoever prepares it, both landlord and tenant must agree it and it should be signed and attached to the lease. An unagreed schedule carries much less weight.
The cost depends on the size, age and complexity of the building. For most tenants, it’s a small fraction of what a disputed dilapidations claim could cost later.
When should you get one?
Before you sign the lease and before you move in. Once you’ve started fitting out, it’s much harder to prove what was already there.
If you later make alterations, keep a record of those too. A licence for alterations, with drawings and photos, makes it clear what you’ll need to reinstate and what was there before.
Why landlords should want one too
It isn’t just for tenants. If you’re letting a building in good order, a schedule of condition proves it. That means no argument at the end of the lease about whether that cracked floor or leaking roof was there from the start.
What Is a Schedule of Dilapidations?
A schedule of dilapidations is a document that lists the items of disrepair, decoration and reinstatement the tenant should have dealt with under the lease. It’s usually prepared by the landlord’s surveyor and costed, so the landlord can claim the cost of returning the building to the required standard.
It can be served in two situations:
- Interim: during the lease, if the landlord believes the tenant isn’t keeping the property in repair
- Terminal: towards or after the end of the lease, as the tenant vacates
A good schedule quotes the relevant lease clauses, describes each breach, sets out the remedy and gives a cost. It’s sent with a quantified demand, the sum the landlord is actually claiming.
The Dilapidations Protocol
End-of-lease claims in England and Wales follow a set process. The Property Litigation Association first drafted a Dilapidations Protocol in 2002, with input from RICS. After several years of work with the Civil Justice Council, it was adopted as a formal pre-action protocol under the court rules on 1 January 2012.
The protocol aims to stop exaggerated claims and encourage early settlement. In practice, it means:
- The landlord generally serves the schedule within 56 days after the lease ends
- The tenant generally responds within 56 days
- Both sides should meet to narrow the issues before going anywhere near court
Courts expect both parties to follow it, and can penalise those who don’t.
The section 18 valuation
A landlord’s claim for damages can’t exceed the actual loss to the value of their property. That’s set by section 18(1) of the Landlord and Tenant Act 1927.
To work out that loss, a chartered valuation surveyor values the property twice: once “in repair”, as the lease requires, and once “not in repair”, as it actually is. The difference is the most the landlord can claim. This is known as a section 18 valuation or diminution valuation.
It matters most when the landlord isn’t planning to carry out the works. If a tired unit is about to be refurbished or redeveloped anyway, the disrepair may make little difference to its value, and the claim may be worth far less than the schedule suggests.
Schedule of Condition vs Schedule of Dilapidations at a Glance
| Schedule of condition | Schedule of dilapidations | |
| What it is | A factual record of the property’s condition | A list of breaches of the lease, with costs |
| When | Before the lease starts | During the lease (interim) or at the end (terminal) |
| Usually prepared for | The tenant | The landlord |
| Who must agree it | Both parties | Neither; the tenant can challenge it |
| Main purpose | To limit the tenant’s repair liability | To claim the cost of remedying breaches |
| Legal framework | Linked to the lease wording | Dilapidations Protocol and section 18 cap |
A Real-World Example
Picture two tenants taking identical, slightly tired units on the same estate in Newcastle-under-Lyme. Both sign ten-year leases with full repairing obligations.
Tenant A commissions a schedule of condition before signing. It records a worn roof covering, cracked yard surfacing and dated toilets, with photos. The lease limits their repair obligation to that condition.
Tenant B doesn’t bother. It seemed like an unnecessary cost at the time.
Ten years later, both receive a schedule of dilapidations including the roof, the yard and the toilets. Tenant A’s surveyor points to the schedule of condition, and those items drop out of the claim. Tenant B has no evidence of what was there before, and faces a much larger bill for problems they didn’t cause.
Same building. Same lease length. Very different outcome, all decided on day one.
How Rory Mack Associates Can Help
The law on schedules of condition and dilapidations is complex, so it pays to get expert advice early. Our RICS-regulated chartered surveyors act for both landlords and tenants. We can:
- Prepare and agree schedules of condition before a lease is signed
- Prepare interim and terminal schedules of dilapidations
- Respond to schedules on behalf of tenants, and reduce liability where claims are overstated
- Provide section 18 diminution valuations
- Negotiate settlements in line with the Dilapidations Protocol
Based in Newcastle-under-Lyme, we cover Staffordshire, Cheshire and Shropshire, including Stoke-on-Trent, Stafford, Leek, Crewe, Congleton, Macclesfield, Nantwich, Shrewsbury and Telford. Find out more about our dilapidations service, or read about what commercial leases you can get in the UK before you sign.
Summary
A schedule of condition records the state of a property before the lease starts and, if the lease refers to it, limits what the tenant has to put right at the end. A schedule of dilapidations is the landlord’s list of breaches and costs, served during or at the end of the lease, following the Dilapidations Protocol and capped by a section 18 valuation. For tenants, the schedule of condition is the cheapest protection you’ll ever buy. For landlords, it removes any argument about what was there from the start.
Taking on a lease, or facing a dilapidations claim? Speak to our surveyors on 01782 715725.
This guide is general information and not legal advice.
Frequently Asked Questions
No. It’s optional, but strongly advisable for tenants taking on a property that isn’t in perfect condition. To protect you, it must be agreed by both parties and referred to in the lease.
You can, but it’s much weaker evidence. Once you’ve occupied and fitted out the property, it’s harder to prove which defects were already there. Always aim to have it agreed before you sign the lease.
Usually a chartered building surveyor acting for the landlord. The tenant should appoint their own surveyor to check it and respond, as the first figure is often open to challenge.
Under the Dilapidations Protocol, the tenant should generally respond within 56 days of receiving the landlord’s quantified demand. Missing the deadline weakens the tenant’s position if the claim goes further.
It’s a valuation of the property “in repair” and “not in repair”, prepared by a chartered valuation surveyor. The difference shows how much the disrepair has reduced the property’s value. Under section 18 of the Landlord and Tenant Act 1927, a landlord’s damages claim can’t exceed that figure.
