Premises Condition Reports (PCR)
A Premises Condition Report – also known as a Schedule of Condition – is a vital tool for commercial property leases, used for capturing the condition of a property at lease commencement, and providing a point of reference for make-good/damage and reinstatement claims at the end of a lease. They are more typically used on existing buildings where a tenant wishes to limit their repair liability, with both landlord and tenant acknowledging the existence of pre-existing patent defects.
What is a Premises Condition Report?
A Premises Condition Report is predominantly a photographic schedule covering all relevant parts of the property. Descriptive text will be used to state the condition the various building elements are in, using standard terms good, fair, poor and very poor.
The principal use of a PCR is in a lease reinstatement/dilapidations claim at the end of the lease term, where a landlord claims that a tenant has not yielded up the property in accordance with the repair covenants in the lease. The PCR will then be referred back to, in order to assess whether the condition of the property has changed over the course of the lease.
What is it not?
A PCR is not a condition survey, so will not provide advice on how to remedy any defects identified. This is with the exception of any hazardous issues which we consider pose a risk to people using or in the vicinity of the property. Any advice relating to this will be provided separately to the report.
How can Pinnacle help?
At Pinnacle Building Consultancy, we have extensive experience working for landlords and tenants in lease reinstatement claims, which allows us to ensure the content, detail and format of a PCR is most appropriate for its intended use.
We use app-based photo software to ensure we can survey your properties quickly and efficiently, minimising the cost of our services and maximising value to our clients.