Industrial units play a vital role in supporting businesses across Manchester’s thriving economy. However, leasing such properties comes with specific challenges, particularly around the condition of the unit at the time of occupation. This case study explores how a detailed Schedule of Condition provided peace of mind for both the landlord and tenant during the lease of a large industrial unit in Manchester.
Background
The property was a spacious industrial unit situated in a Manchester business park, well-suited for use as a distribution centre. The tenant, a logistics company, needed a base to support their expanding operations in the North West. The unit’s size and strategic location made it an ideal choice.
However, with the property showing signs of wear from its previous use as a manufacturing facility, both the landlord and tenant agreed that a Schedule of Condition was essential to establish a clear baseline for its condition. This would protect the tenant from being held liable for pre-existing issues while safeguarding the landlord’s investment.
The Brief
The key objectives for the Schedule of Condition were:
- Documenting Pre-Existing Conditions: Record all visible defects and areas of wear and tear within the unit.
- Minimising Future Disputes: Provide a reliable reference for repair obligations throughout the lease.
- Ensuring Compliance with RICS Standards: Adhere to best practices as outlined by the Royal Institution of Chartered Surveyors (RICS) to produce a professional and robust report.
Our Approach
Initial Consultation
Our team at Schedule of Condition Surveyors began with a consultation to understand the specific concerns of both the landlord and tenant. The tenant expressed a desire to avoid liability for any structural or cosmetic issues stemming from the previous tenant’s heavy use. Meanwhile, the landlord was keen to ensure that the property’s long-term condition was documented and protected.
Survey Planning
Given the property’s size and layout, we allocated sufficient time to conduct a thorough inspection. To minimise disruption, the survey was scheduled for early in the week when the business park experienced lower activity.
Comprehensive Inspection
Our experienced surveyor carried out a detailed inspection of the industrial unit, covering the following areas:
- Floors and Surfaces: The concrete floors were closely examined for cracks, stains, and areas of significant wear. Walls and ceilings were inspected for signs of impact damage or dampness.
- Loading Bays and Roller Shutters: The condition of loading docks, roller shutters, and access doors was meticulously recorded, noting areas of rust, wear, or mechanical issues.
- Office Spaces: While the unit was primarily industrial, its office spaces were included in the survey to ensure a comprehensive record.
- External Areas: The survey covered the condition of the external facades, yard, parking areas, and fencing.
- Photographic Evidence: High-resolution photographs were taken throughout the inspection, providing a visual record to support the written report.
Report Compilation
The final Schedule of Condition report included:
- A detailed introduction outlining the purpose of the report.
- Section-by-section documentation of the property’s condition, cross-referenced with photographs for clarity.
- Notes on any urgent repairs or maintenance requirements observed during the survey.
Challenges Encountered
Size and Layout of the Unit
The industrial unit was over 20,000 square feet in size, with multiple functional areas requiring thorough examination. Our team ensured no detail was overlooked, dedicating extra time to inspect high-traffic zones and key infrastructure like loading bays.
Wear from Previous Use
The unit had seen heavy use over the years, with scuffs, stains, and impact marks present in various areas. These were carefully documented to protect the tenant from liability for pre-existing damage.
Time Sensitivity
The tenant needed the unit ready for immediate use to meet their operational deadlines. We expedited the survey and delivered the final report within four working days, allowing the lease agreement to proceed without delay.
Outcomes and Benefits
For the Tenant
The Schedule of Condition provided the tenant with confidence that they would not be held responsible for existing issues, such as wear on the flooring and minor damages to loading bay mechanisms. This allowed them to focus on setting up their operations without concerns about unexpected repair costs.
For the Landlord
The landlord gained a comprehensive and impartial record of the property’s condition at the start of the lease. This document will serve as a valuable tool for managing repair obligations and avoiding disputes when the lease ends.
For Both Parties
The Schedule of Condition established transparency and trust between the landlord and tenant, setting the stage for a smooth and mutually beneficial leasing arrangement.
Key Takeaways
This project highlights the importance of commissioning a Schedule of Condition for industrial properties in Manchester. The benefits include:
- Clarity and Transparency: Both landlord and tenant have a shared understanding of the property’s state.
- Reduced Risk of Disputes: Accurate documentation minimises disagreements over repair responsibilities.
- Professional Standards: A report prepared in line with RICS guidelines ensures reliability and legal robustness.
Frequently Asked Questions
What is a Schedule of Condition?
A Schedule of Condition is a detailed record of a property’s condition at a specific point in time. It typically includes written descriptions and photographs and is often used in commercial leases to establish repair liabilities.
Who Prepares a Schedule of Condition?
The document is prepared by a chartered surveyor with expertise in commercial property inspections and lease agreements.
How Much Does a Schedule of Condition Cost?
The cost depends on the size and complexity of the property. For industrial units in Manchester, prices typically range from £500 to £2,000.
Why is a Schedule of Condition Important for Industrial Units?
Industrial units often face significant wear and tear due to heavy use. A Schedule of Condition protects tenants from being held liable for pre-existing issues while providing landlords with a clear record for managing repair responsibilities.
Our Expertise in Industrial Units
At Schedule of Condition Surveyors, we specialise in delivering high-quality Schedules of Condition for industrial properties in Manchester and beyond. Whether you’re leasing a warehouse, factory, or distribution centre, our team ensures your interests are safeguarded.
Contact us today to learn more about our services or request a quote. Let us help you navigate the complexities of leasing an industrial unit with confidence and clarity.
