Receiving a dilapidations claim can be alarming, particularly when the landlord is asking for payment for works you do not remember agreeing to.
However, a dilapidations claim is not simply a list of works that the landlord would like carried out. The starting point is the tenant’s lease obligations.
What can a landlord actually claim?
A commercial lease may require a tenant to repair, maintain, redecorate, reinstate or remove certain items at the end of the tenancy.
A landlord can generally seek to recover losses arising from breaches of those obligations, subject to the terms of the lease and the applicable legal framework.
The fact that a landlord has included an item in a schedule does not automatically establish that the tenant is liable for it.
What if the work was never agreed?
A tenant does not necessarily need to have separately agreed to every item in a dilapidations schedule.
The relevant question is whether the tenant was contractually required to deal with the matter.
For example, a repairing covenant may require the tenant to maintain an element of the property even though the tenant never specifically agreed to carry out a particular repair during the tenancy.
Conversely, a landlord cannot simply create a new obligation by including an item in a schedule that is not supported by the lease.
What if the landlord wants to improve the property?
This can be an important distinction.
Dilapidations concern breaches of the tenant’s contractual obligations and the landlord’s resulting loss. A proposed scheme that goes beyond what is reasonably required to remedy a breach may require further consideration.
The landlord’s intended works and the reasonable cost of addressing the relevant breach can therefore be important when assessing a claim.
Can a tenant challenge the schedule?
Yes.
A tenant can obtain an independent assessment of the schedule to establish whether the identified items appear to be supported by the lease and the property’s actual condition.
A surveyor can also consider the proposed scope of works and whether the costs appear reasonable.
Stokemont’s advice
Do not assume that everything listed in a dilapidations schedule is automatically payable.
The lease, the property’s condition and the landlord’s actual loss all need to be considered before a claim can properly be assessed.
If a substantial claim has been made against you, obtaining independent surveying advice early can help identify which items genuinely require further consideration.
