Why a Schedule of Condition is your best friend for tenant handover

The excitement of a new tenancy can quickly fade when it’s time to move out, often replaced by stressful disagreements at property handover time. Far too many landlords and tenants find themselves in bitter disputes over property damage and deposit deductions. The root of these problems often lies in differing expectations, when clearer expectations at the start of the tenancy could resolve a lot of problems later on.

This is where a Schedule of Condition (SOC) becomes your best friend in securing a smooth tenant handover.

What is a Schedule of Condition?

This document serves as a comprehensive record of the condition of your property before a lease begins, highlighting wear and tear and existing defects at the start of a lease, with accompanying photographs to serve as evidence should an issue arise in the future. This establishes an agreed, clear and objective benchmark protecting both parties from future headaches, unnecessary arguments and legal complications.

While this mitigates disputes from the landlord’s perspective, providing clear evidence of any new damage, it’s also incredibly valuable for tenants too, as it safeguards them from unwarranted charges. In a recent blog post, Icon Surveyors noted that “without a Schedule of Condition, tenants could be held responsible for restoring the property to a condition that is better than when they moved in. This can lead to substantial costs, particularly if there is significant pre-existing damage or wear”.

A thorough SOC report should include written descriptions of every room, fixture, fitting, and any outdoor areas, with date-stamped photos that capture wide shots and detailed close-ups of existing issues. While experienced landlords or agents can carry out this survey themselves, many opt for professional assistance for their expertise and objectivity. Crucially, tenants must have the opportunity to review and sign off on the document, ensuring everyone agrees on the property’s condition from day one.

What are the benefits for landlords?

Managing a buy-to-let property comes with a lot of compliance and legal issues to bear in mind, along with the risk that a tenant might cause extensive damage to the property that the landlord needs to fix. An SOC provides robust protection against any false claims, making sure that any damage that’s occurred during the tenancy is paid for by the tenant.

It also streamlines the deposit deduction process considerably. Rather than relying on memory or subjective assessments, there’s a detailed report to fall back on as evidence, which minimises the chances of disputes escalating. Perhaps most importantly, having a comprehensive report provides legal compliance and peace of mind. The rental market is increasingly regulated, and proper documentation demonstrates professionalism.

Benefits for tenants

The primary advantage of a detailed SOC report for tenants is the protection it brings them against unfair charges. Property listings can sometimes be deceiving, hiding damage that goes unnoticed until they move in, later discovering that extensive repairs are needed. The SOC will have these issues listed, preventing blame for normal wear and tear. As the charity Shelter highlight to tenants in their housing advice, “Wear and tear is caused by everyday living…You must look after your home but your landlord can’t expect it to be returned in exactly the same state as when you moved in”.

The SOC report provides clarity on responsibilities throughout a tenancy, explaining what constitutes damage versus normal ageing and disrepair over time, and establishing who is responsible for resolving those problems at the end of the tenancy. It similarly helps tenants make informed decisions about maintenance and encourages better stewardship of the property without worrying that they’re doing too little in terms of upkeep. This can then extend to the smooth return of a tenant’s deposit at the end of the tenancy.

The process of creating and using an SOC

Once the initial documentation is complete, tenants need to be given adequate time to review the report before signing it. This time allows them to raise any discrepancies or suggest additions they feel are necessary before their tenancy properly starts. A joint signing process ensures both parties agree on the documented condition, creating a solid foundation for the tenancy and establishes trust.

At the end of the tenancy, a checkout inspection compares the property’s current condition against the original SOC. This will identify the status of any new damage and provides the basis for any necessary deposit deductions. Make sure that there’s proper documentation in place of any changes to ensure the process remains objective and fair.

Best practices for success

When it comes to an SOC report, thoroughness is critical. You don’t want to cut corners or rush the process, because that can lead to gaps that pose problems later on. Each room, cupboard, fixture and fitting needs to be comprehensively detailed and documented.

Clarity and objectivity in language are also vital – descriptions should be clear and concise, avoiding subjective terms that could be interpreted differently by different people. For example, instead of writing “slightly worn”, specify “light scuff marks on skirting board approximately 15cm from corner”. This prevents any confusion once the tenancy comes to an end.

When it comes to photographic evidence, more is definitely better. You, or your surveyor, should capture both detailed shots of specific issues and wider shots that provide context. Make sure all photos are date-stamped, ideally using a camera or phone with reliable timestamp functionality.

For longer tenancies, you might need to update your SOC periodically or add addendums to reflect any agreed changes or improvements made during the course of the lease. This keeps the documentation current and accurate.

Finally, know when to engage professional services. For high-value properties, complex situations, or when landlords lack experience, professionals bring expertise, objectivity, and legal knowledge that can prove invaluable.

A Schedule of Condition may seem like simply more paperwork to fill out but, in reality, it’s an investment in your peace of mind and property management. Taking the time to create comprehensive documentation at the start of each tenancy helps landlords protect their assets and ensure tenants gain security against unfair charges.