Why You Should Always Create a Photographic Schedule of Condition Before Signing an FRI Lease

So you have found a new commercial property to rent and are about to sign a Full Repairing and Insuring (FRI) lease? Exciting times! But before you put pen to paper, there’s one thing you really need to do: get a Photographic Schedule of Condition (PSOC) carried out. Let’s break down why this simple precaution can save you a fortune—and why ignoring it is a huge risk.

What is a Photographic Schedule of Condition?

In simple terms, a PSOC is a detailed visual record of a property’s condition at the start of a lease. It includes:

• High-quality photos of walls, floors, ceilings, windows, doors, and any external existing damage or wear.
• A written report describing the state of the building at the time of inspection.
• Time-stamped evidence that proves the property’s state before you moved in.

Why is a PSOC Important?

An FRI lease makes you responsible for all repairs and maintenance.

There are four key clauses relating to property maintenance in a lease: repair, decoration, reinstatement, and compliance. Perhaps surprisingly, decoration often brings about the  highest claims. 

External elements include: 

• roof
• guttering
• elevations (walls, cladding, windows, doors, curtain glazing, rainwater goods)
• external areas included in the lease (car parking, loading bays, external outbuildings)

Internal elements include: 

• ceiling
• walls
• floors
• windows
• doors
• services

Without a PSOC, landlords could argue that any damage or deterioration is your fault, even if it was already there when you moved in. That means you could end up paying thousands for repairs that shouldn’t be your responsibility.

The Pitfalls of Not Having One

1. Unfair Repair Bills – Without proof of pre-existing damage, you might be held accountable for issues that existed long before you arrived. Suddenly, you’re footing the bill for a leaky roof you had nothing to do with!
2. Expensive Dilapidations Claims – When your lease ends, the landlord will assess the property’s condition. If you don’t have a PSOC, they can claim for “damages” that were actually pre-existing.
3. Legal Disputes  – If you end up in a legal dispute over repairs, it’s your word against the landlord’s. Without photographic evidence, proving your case becomes a lot harder.

Even if you maintain the property well, deterioration happens. A PSOC helps ensure you’re only responsible for damage caused during your tenancy, not historical wear and tear.

As a rough guide on a standard warehouse unit measuring 10,000 square feet, a lease dilapidations claim might be somewhere between £30,000 to £80,000 and even more for an office building. A small outlay for a Schedule of Condition is a sound investment.

In summary a Photographic Schedule of Condition is a vital layer of protection against unexpected costs and unfair claims. Without one, you could end up paying for things that were never your responsibility in the first place.