If you are a commercial tenant approaching the end of your lease and your landlord has served a Schedule of Dilapidations, you are not necessarily required to accept every item or cost claimed.
A tenant can challenge a dilapidations claim where there are reasonable grounds to do so.
What is a dilapidations claim?
A dilapidations claim generally relates to breaches of the tenant’s obligations under the lease.
These may concern:
- Repairs
- Redecoration
- Reinstatement
- Removal of alterations
- Yielding up requirements
The precise obligations will depend upon the lease.
Can I challenge the landlord’s survey?
Yes. A tenant can instruct its own building surveyor to review the landlord’s Schedule of Dilapidations and assess the items claimed.
The tenant’s surveyor may agree some items, dispute others or identify matters where the claimed scope or costs require further consideration.
Does the landlord automatically get the full cost of repairs?
No. A dilapidations claim is not simply an invoice for every defect found at the property.
The legal basis and financial consequences of a claim need to be considered, including the landlord’s actual loss and the requirements of the lease.
This is one reason why specialist surveying and legal advice can be important when a substantial claim is involved.
When should a tenant get advice?
Ideally, before the lease expires.
Obtaining professional advice early gives the tenant an opportunity to understand its obligations, consider potential exposure and, where appropriate, undertake works before vacating.
Stokemont also recommends that tenants consider a Schedule of Condition at the beginning of a lease, as this can provide important evidence of the property’s condition at the start of the tenancy.
Stokemont’s advice
Do not automatically accept a dilapidations claim without understanding what you are being asked to pay for.
A building surveyor can review the condition of the property, the lease obligations and the landlord’s schedule, helping to identify areas that may require further consideration.
Stokemont provides dilapidations and Schedule of Condition services for commercial landlords and tenants.
If you want to obtain an instant quote being a fixed cost, timing for the survey and a little more advice on how we approach commercial property disputes, please get in touch with us today!
