A Schedule of Dilapidations is required when the tenant’s lease and occupancy of a property is approaching its termination.
A Schedule of Dilapidations can also be required when the tenancy is at its mid-point and the landlord wants to take stock of the condition of their property.
The purpose of the Dilapidations Schedule would be to ensure that the landlord and tenant are fully abreast of the issues whether they are preparing liabilities, reinstatement liabilities or redecoration liabilities are well aware of.
A Schedule of Dilapidations, also commonly referred to as a Scott Schedule, is usually undertaken at the end of the tenant’s lease, the purpose is for the landlord to inform the tenant of his or her expectations in respect of the yielding up requirements of the property.
This will ensure that the landlord is not unfairly and unreasonably left out of pocket for necessary repairs of the property.
The aim here being that they can easily re-market the property, or re-let it to a new tenant in a white box format.
Essentially meaning that the internal parts of the property are redecorated with new floor coverings and ready to go from a tenant’s perspective.
Scott Schedule
A Scott Schedule is another name or phrase for a Schedule of Dilapidations, or terminal Schedule of Dilapidations.
The Scott Schedule will effectively set out the various defects that the landlord makes during the course of their investigations into the condition the tenant has left the property in.
The schedule will go through the property in a methodical and piecemeal basis, ensuring that all of the defects and issues are clearly noted, referenced to photographs, and reference back to the lease’s wording and requirements in respect of the dilapidations and repair.
The Scott Schedule will then often be costed or priced, with the final result then being presented to the tenant for their response.
Tenant Response
The tenant response will often be to accept the dilapidations and then go through the necessary course of reimbursing the landlord for their losses. The losses mainly being the cost it will take to bring the property back up to its lease repair standards, while also taking into account the likely professional fees, loss of rent and contractor costs in having repair take place.
Alternatively, the landlord’s tenant can go through the necessary repairs themselves, ultimately handing the property back to the landlord in a fair and reasonable condition.
Dilapidations are one of the key services that we provide here at Stokemont on a daily basis.
If you would like to discuss your dilapidations requirements with our team of building surveyors, please feel free to get in touch today, we will be more than happy to assist and advise.
