Pre-lease inspections to provide independent and documented evidence of the condition of premises at the commencement of a lease.
A Premises Condition Report (often referred to as a PCR) allows landlords and tenants to record what premises looked like at the lease commencement. The PCR provides clarity over the make good reinstatement or lease exit obligations, as well as a baseline of what tenants' maintenance obligations should be.
The absence of a Premises Condition Report can be costly
Without an independent, documented record of the condition of a property prior to lease, tenants and property owners can leave themselves open to the risk of disputes at lease end. Tenants who do not get a Premises Condition Report before signing a lease may find themselves held liable for the cost of repairs to existing damage if it hasn't been properly documented at the outset.
What's more, large commercial organisations must report their lease make good liabilities on their balance sheets. If a key person who signs their organisation up to a lease leaves, those left behind can be exposed to expensive make good claims if no PCR is attached to the lease. All too often, those left behind in the organisation are usually unaware of the specific lease obligations, particularly in relation to make good.
A well prepared Premises Condition Report adds value
A well-prepared Premises Condition Report adds significant value to all parties to a lease. Premises Condition Reports provide a documented photographic record of the building's condition at lease commencement, which reduces the possibility of lengthy and costly disputes arising. They can protect tenants at lease end and prior to lease end when landlords want the demised premises offered up by the tenant in line with the lease terms.
Highly detailed and commercially focused, our Premises Condition Reports are certified by both parties to the lease as a true representation of the condition of the premises at the date of inspection, leading to a smooth lease exit for both parties when the time comes.
