A Schedule of Dilapidations is a document identifying alleged breaches of a tenant’s obligations under a commercial lease.
It is commonly prepared towards the end of a tenancy and can identify repairs, redecoration, reinstatement or other works that the landlord considers necessary.
What can a Schedule of Dilapidations include?
The precise matters depend upon the lease, but may include:
- Repairs
- Redecoration
- Reinstatement of alterations
- Replacement of damaged elements
- Removal of tenant installations
- Compliance with yielding-up obligations
The schedule should be considered against the actual lease obligations rather than simply listing every defect found at the property.
Does the tenant have to accept it?
Not automatically.
A tenant can obtain professional advice and review whether the items claimed are supported by the lease and the condition of the property.
There may be matters that are agreed, disputed or require further consideration.
When should a tenant seek advice?
Ideally, before the lease expires.
Early advice can allow the tenant to understand its potential exposure and consider whether appropriate works should be undertaken before vacating.
A Schedule of Condition prepared at the start of the lease can also provide important evidence when the property’s condition is assessed at the end.
Stokemont’s advice
Dilapidations can have significant financial consequences for commercial tenants.
A building surveyor can assess the physical condition of the property and consider the technical aspects of a dilapidations claim.
Stokemont provides dilapidations advice and surveying services for both landlords and tenants.
