As a commercial landlord, you will want to ensure that your premises are kept in a good state of repair throughout the tenancy and once the tenancy has ended.
It is therefore crucial that a landlord understands what they are able to claim for under the terms of the lease by way of claim for dilapidations.
What are commercial property dilapidations?
When a commercial tenant has neglected the state of a property and left it in a poor condition, it may be considered dilapidated.
In such a case, the landlord can begin a process, known as a dilapidation, to recover any loss they’ve suffered due to the damage caused by the tenant.
This can include things such as the removal of any fittings, general decoration of the property and any damage caused to the property.
Who is responsible for dilapidations?
There will generally be a repair obligation within a lease that requires the tenant to keep the property in a good state of repair during and at the end of the lease.
A failure to do so will be a breach of the lease and could leave the tenant exposed to a potential dilapidations claim.
Every lease has different wording regarding the tenant’s obligations, so it is important that any landlord ensures that a dilapidations clause is in place before entering into a commercial lease.
What is a schedule of dilapidations?
A landlord can instruct a surveyor to complete a schedule of dilapidations, either during the lease or at the end of it, which will set out the condition of the property and the items of disrepair.
We would recommend that the surveyor preparing the schedule seeks legal advice in relation to the legal interpretation of the obligations in the lease.
The tenant will then be able to seek their own advice from a separate surveyor who can consider the schedule of dilapidations completed by the landlord’s surveyor and respond to the landlord’s claim.
If you would like any assistance with this, please don’t hesitate to get in touch with our team here.
What is included in a schedule of dilapidations?
A schedule of dilapidations will include:
- Wording which sets out the condition of the property
- An itemised list of dilapidations
- An outline of what is required to rectify the breach
- The likely cost of repair
Click here to read the full article, where Olivia looks at the dilapidation claim process.