Lease Cycle Services
Make Good Reports
Make good reports, also known as schedules of dilapidations, provide an assessment of a tenant’s end of lease yield up obligations to identify and cost the works required to meet these obligations.
The purpose of these is to define liability at lease expiry and to initiate negotiation of remediation works and costs. Although the make good process is most commonly undertaken towards the end of a lease, assessments of make good obligations can be done at any time during the lease.Professional bodies recommend reinstatement cost assessments are renewed at least every 3 years. Insured amounts should also be reviewed if significant alterations are undertaken to the building (e.g. extending building area or change of use).
Cedar Tree has extensive experience in the preparation of make good reports and will review tenant lease documentation, inspect the property, schedule all breaches of the yield-up obligations and schedule the costs associated with making good these breaches. Cedar Tree undertake all dilapidations work in accordance with the RICS Schedules of Reinstatement (NZ) Guidance Note, and can work for both landlords or tenants.
Dilapidations can be complex. A proactive approach from the landlord and tenant is the best way to manage the process and both parties should be prepared to enter into discussion on the matter. We can act as independent negotiator helping to achieve an optimum outcome whilst maintaining positive landlord and tenant relations.
Premises Condition Reports
A premises condition report (or schedule of condition) is a photographic record describing the physical condition of an asset at a particular point in time.
It is typically prepared prior to lease commencement to avoid disputes at the end of a lease. Premises condition reports (PCR) provide a photographic record of a property at lease commencement and are becoming increasingly common in commercial leases. Provision for a PCR is now included in the Auckland District Law Society Deed of Lease (sixth edition). A PCR appended to the deed of lease will reduce the potential for disagreement between parties at lease-end and when the tenant is required to reinstate the premises.
Tenant Due Diligence
Tenants often have bespoke requirements relating to their Tenancies which can be as varied as the types of client and the properties the occupy.
Cedar Tree are on hand to provide Tenants with certainty before they occupy a space and can undertake investigations that your Tenancy will meet your requirements - for example that no concerns are likely to arise during a lease term relating to seismic strength of a building, weathertightness, performance of mechanical and electrical fittings etc.