Location: Christchurch
Sector: Hospitality
Services: Building Surveying – Premises Condition Reports
The brief
After years of building up a network of successful hospitality businesses in Christchurch, our client negotiated a lease agreement with an overseas investor to operate their portfolio of pubs, liquor stores, and accommodation premises. Under this arrangement, the client would retain property ownership while leasing each asset, including fixtures and fittings, to the new operator.
With their portfolio shifting to a landlord-tenant structure, legal counsel recommended that our client engage Prendos to undertake Premises Condition Reports (PCRs). These reports would formally document the condition of each property at the start of the lease, providing an essential reference point for all parties.
Our solution
A Premises Condition Report captures the precise condition of a property at lease commencement, setting a clear baseline for both make-good obligations and ongoing maintenance expectations. This transparency significantly reduces the risk of disputes at lease end, ensuring both landlords and tenants understand their respective responsibilities from day one.
Although the transaction was already at an advanced stage, our client acted quickly on their legal advice, knowing that a comprehensive PCR would offer long-term protection and peace of mind. Prendos’ experienced Christchurch team responded promptly, conducting thorough inspections across the portfolio. Each property was meticulously photographed and documented, providing clear and objective records of every interior and exterior space.
The outcome
Despite the tight timeline, Prendos delivered detailed PCRs that met the needs of both landlord and tenant. These reports were reviewed by both parties and mutually accepted, then formally appended to the lease agreements to serve as a transparent benchmark throughout the tenancy.
The cost of the reporting was shared equally between both parties, reflecting the mutual value delivered. With an objective reference point in place, both landlord and tenant gained clarity around ongoing maintenance and lease exit obligations, greatly reducing uncertainty and future risk.
Need help with Premises Condition Reports? Call us today on 0800 773 636 or email prendos@prendos.co.nz.