When sub-leasing a commercial lease, the incoming tenant or ‘Assignee’, will often take possession of the property ‘as is’ or as left by the outgoing tenant or ‘Assignor’.
Sub-leasing often becomes problematic towards the end of the lease because the Assignee may not have considered its obligations to ‘make good’ the property until it’s too late. It is often also the case that the Assignee has unwittingly agreed to ‘make good’ or return the premises to its original state and not the state in which it was received from the Assignor. This aspect, if missed in the pre-acceptance negotiations of the assignment, can be both time consuming and very costly to remedy.
A Property Condition Report (PCR) is an effective method for accurately and independently recording the condition of property prior to assignment and should be undertaken to avoid costly landlord and tenant disputes which can involve ‘make good’ clauses, bond retention, insurance claims and all too common legal proceedings.
Asset Reports are the market leader in Perth for the provision of Property Condition Reports and have significant experience across a wide range of property sectors.
Asset Reports believe that there has never been a more important time for PCR’s to be undertaken by commercial landlords and tenants alike and have seen a significant increase in the demand for this service as clients seek to minimize their risk of exposure to unnecessary cost and also due to the increase in sub-leasing as clients seek to reduce their costs in this challenging economic environment.
“Documented written and photographic evidence provides an additional level of protection”