Sydney Property Investors - Must Read

Schedule of Condition Report

Schedule of Condition Report

A schedule of condition Report details the existing condition of a building at a specific point in time, which is usually used when leasing, purchasing or updating property assets or when there is a change of ownership.

It is an item-by-item account describing the elements of the building and their condition and it is recorded in a written report with photographic evidence.

Schedule of condition reports are particularly important to commercial and industrial tenants as usually commercial and industrial leases will stipulate that the tenant is responsible for repairs at the end of the lease. Depreciation Quote Schedule

A schedule of condition report, signed and incorporated into the lease prior to signature, will help to reduce your legal liabilities and minimise make good risk at lease termination.

The main purpose of a schedule of condition is to:

CASE STUDY

Property Type: Industrial/ Storage
Property Size: 4,000m2
Location: Western Sydney

Depreciation Calculator A private landlord contracted Washington Brown to undertake an ingoing schedule of condition of an existing industrial and storage facility located in Western Sydney.

The client required a professional ingoing schedule of condition be carried out prior to him signing the lease, to record the existing condition of the building. It would then form part of the lease agreement and be used in the make good at lease termination, in the event of any dispute. The inspection was carried out within five days of us receiving instructions and the report was issued within the client’s timeframe of five days.

In consultation with the client, we identified their requirements and the extent of the schedule of condition. We did a thorough internal and external inspection of the premises and identified all existing defects/damages within the building. Then we produced a detailed report which outlined the element description and condition of the building. The report also included photographs to identify and support the issues raised.

The client was very satisfied with our reports and findings. They were able to negotiate that our report be included in the lease agreement, therefore minimising their risk in case of any dispute.
Our independent assessment gave the client a solid foundation and the peace of mind that in the event of any future dispute, they have a legally-sound document that will make the settlement quicker.

Learn more about a schedule of condition report here.

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -