Thank you, for clicking on today’s Property Surveying blog. Today’s blog will take a focussed look at property dilapidations.
Property dilapidations come into play by virtue of a landlord wanting to ensure that their commercial property and premises are handed back to then in a fair state of order and repair.
The dilapidations procedure will ultimately result in the tenant being made aware of various different issues and defects that have occurred to the landlord’s property during the course of the tenant’s occupancy and tenancy.
Dilapidations Procedure
The procedure generally tends to be that the landlord will instruct a surveyor to undertake a dilapidations report. The surveyor then provides that report to the landlord, along with necessary advice as to which areas of the property are in disrepair, have been altered, or require redecoration. Along with a costed and itemised point-by-point analysis of the necessary dilapidations that are required.
What does the landlord do with this report?
Once armed with this report, the landlord can then open up informed discussion with their tenant in order to ensure that the overall effect of the tenant’s departure is minimal.
What can the tenant do?
Generally speaking, once the tenant has received the landlord’s dilapidations survey, they are either going to agree with the contents of it, or dispute it.
In a scenario whereby they agree with the contents of it, it is more a matter of the tenant putting in provisions to ensure that the property is indeed reasonably handed back to their landlord prior to their departure, or on the terminal day of their lease.
The key timing that the tenant will need to take into account, is that the landlord will expect the property to be handed back to them in the remedied state as per the dilapidations report upon the final day of their lease.
This will effectively mean that the tenant will need to move out of the property prior to the expiration of the lease, allowing for a sufficient window of time for competent contractors or decorators to visit, make good and ultimately repair.
What are the different dilapidations?
Generally speaking, there are going to be three different dilapidations types that will persistently reoccur throughout all dilapidation surveys.
We are now going to take a close look at these to ensure that you are fully informed.
Repairs
The repairs are without saying one of the more dilapidations issues that are likely to occur to commercial properties.
Repairs ultimately require the tenant to remedy any issues that have arisen to the property during the course of their tenure.
Typical examples of this could be damage to service rooms, kitchens, bathrooms or general damage that occurs through the day-to-day use of a business operator working from a commercial premises.
Redecoration
Just as repairs are common, redecoration is even more so.
Redecoration will ultimately occur when the tenant does not regularly decorate, maintain or upkeep the premises.
Their lease will often set out the tenant’s requirements and landlord’s expectations for the decoration of the property to take place at agreed intervals. This is commonly 3-5 years.
In doing this, the tenant will stay on top of the decorations required, and the landlord will have peace of mind that the overall dilapidations claim at the end of the tenancy is going to be as low as it can be.
In many cases, with Full Repairing and Insuring Leases (FRI), the tenant’s repairing obligations will extend to internal and external parts.
Importantly, tenants need to be aware that the requirement to make good will cover both of these areas.
Reinstatement
Reinstatement is another typical and common issue.
It is to be expected that tenants are going to adjust and alter the layout of the property, usually by adding partitions, removing partitions, adding changing rooms, service media rooms, partitioned offices, etc.
While all of these alterations have a fantastic use for the tenant during the course of their tenure and operations of their business, in many cases they are going to serve no purpose to the landlord.
The landlord will therefore rightfully want them removed, and the affected areas made good prior to the property being handed back to them.
If you would like to discuss dilapidations services with our team of experienced building surveyors here at Stokemont, please feel free to call us today, we are more than happy to offer 30 minutes free, no-strings advice to landlords or tenants alike.
