Last updated: 24 April 2026
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Most new pub licensees sign their tenancy agreement without truly understanding what happens if they fall out with their pubco three years in. A schedule of condition is the document that sits between you and a six-figure dilapidations bill when you leave. Yet I’ve seen incoming tenants glossed over this in five minutes—and watched outgoing tenants get nailed for repairs they never caused because there was no baseline record to argue from. The schedule of condition exists for one reason: to prove what state the pub was in when you walked through the door. This article explains exactly what it is, why it matters, and how to protect yourself before you sign anything.
Key Takeaways
- A schedule of condition is a legal document that records the physical state of a pub building, fixtures, and fittings at the start of your tenancy.
- You are legally responsible for returning the pub in the same condition at the end of your lease, except for fair wear and tear—making the schedule your only defence against inflated dilapidations claims.
- Most pubcos provide a basic schedule, but you have the right to instruct a professional surveyor to produce an independent, detailed version before you sign.
- Disagreements over what “fair wear and tear” means cost licensees thousands every year—a detailed initial schedule with photographs eliminates this ambiguity later.
What Is a Schedule of Condition?
A schedule of condition is a legal document that records the physical state of a pub—including the building structure, fixtures, fittings, decor, and equipment—at the moment you take on the tenancy. It becomes part of your lease agreement and serves as the baseline for assessing what state the property should be returned in when your tenancy ends.
Think of it as a snapshot in time. When you hand back the keys, your pubco will carry out a final survey. If the property is in worse condition than documented in the original schedule, they can claim dilapidations—money from you to cover the cost of repairs and reinstatement. Without a detailed schedule, that claim is based on the pubco’s word alone. With one, you have proof.
In practice, this means the schedule should describe everything from the roof condition down to the state of the bar stools. A comprehensive schedule might run to 20 pages and include photographs of every room, the kitchen equipment, the cellar, external areas, and the condition of paintwork, flooring, and fixtures.
Why It Matters Before You Take On a Pub
When I took on Teal Farm Pub in Washington three years ago, the schedule of condition was buried in a bundle of paperwork I was handed ten days before completion. I nearly signed it without reading it properly. That would have been a mistake that could have cost me five figures on the way out.
Here’s why it matters: at the end of a pub tenancy, the relationship between you and your pubco is usually over. You’re leaving, they’re reclaiming the property, and there’s no incentive for either party to agree amicably on what’s “fair wear and tear.” If you don’t have a detailed schedule signed at the start, the pubco’s surveyor will assess the property in its current state and invoice you for everything that looks tired or damaged. You’ll have no evidence to argue otherwise.
The schedule of condition is your only legal protection against unfair dilapidations claims because it establishes what the pub looked like before you took on the burden of running it. Without it, you’re liable for repairs that may have been needed before you arrived.
I’ve spoken to licensees who inherited boilers held together with hope, carpets that should have been replaced a decade earlier, and kitchen equipment past its reasonable working life. When they left, the pubco claimed for full replacement—at current prices, not the depreciated value. The incoming tenants who had detailed schedules won every dispute. The ones who didn’t, lost.
What Should Be Included in a Schedule of Condition
A professional schedule of condition covers the entire pub property and should include:
- Building structure – roof, walls, windows, doors, condition of rendering or cladding
- Interior – condition of ceilings, walls, paintwork, flooring in every room (bar, dining areas, kitchens, cellars, toilets, office, storage)
- Fixtures and fittings – the bar counter, gantry, shelving, furniture, fire safety equipment, light fittings, radiators, plumbing
- Kitchen equipment – ovens, grills, extraction hoods, fridges, freezers, prep surfaces, sinks, dishwasher (age, working order, minor defects)
- Cellar equipment – cooling systems, gas lines, pumps, barrels, condition of cellar flooring
- External areas – beer garden, car park, external signage, boundary fences, drains
- Photographs – dated images of all key areas, particularly anything that looks tired or damaged
- Condition ratings – each element should be marked as “good,” “fair,” “poor,” or “requires remedial action”
A schedule prepared by a pubco surveyor often runs to 5–10 pages and is quite brief. A schedule prepared by an independent professional surveyor can be 20+ pages with detailed room-by-room notes and a comprehensive photo schedule. The independent version costs more upfront (typically £400–£800) but is worth every penny because it’s harder to argue with, stands up better in any dispute, and covers your back legally.
How to Review and Challenge Your Schedule
When your pubco provides a draft schedule of condition, you have the right—and you should use it—to instruct your own surveyor to review or prepare an alternative version. This is not confrontational. It’s standard practice and most pubcos expect it, especially in larger tenancies.
Here’s what to do:
- Read it thoroughly – don’t skim. Check every page. If something is marked “good” and you can see it’s actually tatty, speak up immediately.
- Walk the property with the schedule in hand – cross-check each item. Look at the roof from outside, the cellar carefully, the kitchen in detail. Take your own photographs on the same day.
- Identify discrepancies – if the schedule says “paintwork good” but walls are scuffed and marked, ask for that section to be amended in writing before you sign.
- Request additions – if something important isn’t mentioned (e.g., a crack in a wall, loose roof tiles, a faulty extraction hood), ask for it to be documented.
- Instruct a surveyor – for a community pub or anything over 100 covers, this is worth doing. A surveyor will spot things you’ll miss and produce a detailed report that stands as evidence later.
The key principle: anything not recorded in the schedule is assumed to have been in good working order when you took on the pub. So if you don’t flag a problem, you inherit it.
I’ve helped prospective licensees challenge schedules that were too vague or inaccurate. Most pubcos will amend them without drama if you ask before you sign. Once you’ve signed, changing it becomes much harder.
Common Mistakes Incoming Tenants Make
After 15 years in hospitality and working through the full ingoing process on a Marston’s CRP agreement, I’ve seen patterns repeat. Here are the mistakes I see most often:
- Signing without reading – the schedule arrives in a bundle of documents and gets signed on the strength of a five-minute conversation. You wouldn’t do that with a contract worth five figures, yet people do it with schedules that determine future liability.
- Not comparing it to the property – a schedule prepared three months before completion might not reflect the current state. The property can deteriorate. You need to verify the schedule matches what’s actually there on your ingoing day.
- Accepting vague descriptions – “kitchen in reasonable order” is useless. You need specific notes on each piece of equipment: “Rational oven, 12 years old, working but cosmetic marks on door” is actionable. “Oven good” is not.
- Not documenting existing damage – if there’s already a dent in the bar, a stain on the carpet, or a loose door, it needs to be in the schedule. Otherwise, you’ll be charged for it on the way out.
- Assuming the pubco will be fair – I don’t say this out of cynicism. But pubcos are landlords. Their financial incentive is to maximize the dilapidations claim. A detailed schedule removes ambiguity and protects both sides.
How to Protect Yourself Legally
Before you sign your tenancy agreement, the schedule of condition needs to be absolutely locked down. Here’s the sequence:
Step 1: Request the draft schedule early – ask your BDM or the pubco for the schedule as soon as you’re in principal agreement to take on the pub. Don’t wait until week two before completion. You need time to review and challenge it properly.
Step 2: Have it independently surveyed if the pub is substantial – for a 180-cover operation like Teal Farm, a professional surveyor’s schedule is essential. They’ll produce a detailed, dated report with photographs that becomes your legal evidence later. Cost: £400–£800. Value: priceless if there’s ever a dispute.
Step 3: Check the schedule matches the property as it actually is on ingoing day – the schedule might have been prepared weeks or months earlier. A final walk-through on your ingoing day (or the day before) should confirm everything still matches. If something has changed for the worse, document it immediately and notify your pubco in writing.
Step 4: Photograph everything yourself – don’t rely solely on the pubco’s photographs or the surveyor’s. Take your own dated photos of any areas that are worn, damaged, or look like they might be contentious later. Store them safely. These become your evidence if needed.
Step 5: Understand what “fair wear and tear” means in your lease – your tenancy agreement should define this. Fair wear and tear typically means the normal deterioration you’d expect from running a busy pub—worn carpets, scratched bar surfaces, faded paintwork. It does NOT mean structural defects, failed equipment, or water damage. Make sure you understand the distinction before you sign.
One practical insight: on your ingoing day, walk the property again with the schedule and your surveyor (if you’ve instructed one) and sign off a final confirmation that the schedule matches reality. This is your last chance to flag anything before you legally inherit all responsibility for the condition of the building.
Understanding your pub tenancy ingoing costs goes beyond just money paid upfront—it includes understanding every legal obligation you’re taking on, which is why the schedule of condition sits at the heart of that process.
Frequently Asked Questions
What happens if you don’t have a schedule of condition?
Without a schedule of condition, you’re liable for the entire cost of any repairs or reinstatement needed when you leave, because there’s no baseline record proving what condition the pub was in when you arrived. Pubcos can claim for repairs that may have been needed before your tenancy started. This is why having one is legally critical—it’s your only defence against inflated dilapidations bills.
Can you negotiate or change the schedule of condition after you’ve signed?
Technically yes, but it’s much harder. Once you’ve signed a tenancy agreement, amending the schedule requires written agreement from both you and the pubco. Most pubcos won’t revisit it without good reason. This is why reviewing and challenging it before you sign is essential—that’s your window of opportunity to get it right.
Who pays for an independent surveyor’s schedule of condition?
You do. The pubco typically provides their own surveyor’s schedule as part of the tenancy offer. If you want an independent schedule, you instruct and pay for that yourself, usually £400–£800. It’s an upfront cost, but it protects you from potentially much larger claims later, so it’s worth the investment for any significant pub.
Is a schedule of condition the same as a building survey?
No. A building survey is a structural assessment of the property, typically done when you’re considering buying a freehold pub. A schedule of condition is a detailed record of the state of fixtures, fittings, decor, and equipment at the start of a tenancy. You might have both if you’re buying a freehold, or just a schedule if you’re taking on a tied tenancy. Before taking on any pub, make sure you understand the distinction and have the right documentation in place.
What happens if you dispute dilapidations at the end of your tenancy?
If you dispute a dilapidations claim, the pubco must prove the damage or poor condition wasn’t there when you took on the pub. If you have a detailed schedule with photographs showing the condition was already poor, you have evidence to argue against paying. Without that schedule, the burden of proof falls on you, and you’ll likely lose because you have nothing to prove your position. This is why the schedule is so important to settle upfront.
Before you commit to any pub tenancy, you need real clarity on every financial and legal obligation you’re inheriting.
Knowing the schedule of condition matters, but knowing your numbers matters more. When are you cash-positive? What’s your labour cost running at? Will you actually make money? These are the questions that decide whether you stay three years or three months.
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