Most commercial leases place a responsibility upon the tenant to keep the property in good repair, often referred to as a full repairing and insuring (FRI) lease. Many tenants however do not appreciate that this liability extends to 'putting' as well as 'keeping' the property in good repair and under these terms the tenant is required to hand back the property in good repair regardless of the condition at the beginning of the lease.
The costs of minor disrepair can be offset by incentives, such as rent free periods etc but where there is more extensive disrepair, especially in older buildings, it may be possible to have the lease modified so that the tenant's liability is limited to handing back the building in no worse condition than at commencement of the term.
This will require the landlord's agreement and a record of the original condition, known as a Schedule of Condition, which is attached to the lease agreement.
Our professionally qualified surveyors are able to undertake pre lease surveys and prepare a Schedule of Condition.
The cost of taking professional advice before signing a lease can be a fraction of the potential liability at the end.