Property dilapidations occur and arise at the end of a commercial tenant’s lease, tenure and occupancy of the property in question.
Under the terms of the tenant’s lease and in particular, the dilapidations covenant, they will be legally responsible to repair, make good and in some cases, yield up property before passing it back to their landlord.
The purpose and premise behind this wording is to ensure that the landlord is not left in a position whereby the tenant vacates the premises leaving them with a property that then requires substantial remedy to bring it back to a market fit rental position.
Who is Responsible for Dilapidations?
It is going to be the tenant to whom is responsible for the lease and is contractually obliged by it.
In the first instance, upon completion of the tenant’s lease, the landlord will arrange for a surveyor to visit and assess the property, flagging up, recording and scheduling all the dilapidations they note.
Who Pays for the Landlord’s Surveyor Fees?
First and foremost, it will be the landlord who covers the Dilapidation Surveyor’s reasonable costs.
These costs will later form part of the Dilapidations Schedule and claim that the tenant will ultimately be made party to via their landlord.
What Can I Expect in Terms of Dilapidations Costs?
The professional fees themselves usually start around the £1,000 mark, depending on the overall size of the property that is being inspected.
A dilapidation could be as simple as holes and openings in plasterboard finishes, or brickwork finishes, whereby the tenant will have had some form of installations installed to accommodate business activities. However, it can be as severe as defective roofs, gutters, and potentially even windows. Ultimately, the tenant will need to ensure they pass the property back to their landlord in as good as, in some cases, a yielded up state.
Can I Dispute my Landlord’s Dilapidation Schedule?
Yes. This is one of the rights and privileges that a tenant is afforded. However, it is important to note that in order for a tenant to successfully dispute their landlord’s dilapidation schedule and claim, they must instruct their own surveyor to prepare their own schedule of dilapidations, or alternatively, review, comment and respond to their landlord’s dilapidations schedule.
Are Disputes Common?
Yes. Dilapidations schedule disputes and disagreements are relatively common. In many cases, the landlord’s surveyor is going to be particularly thorough when it comes to looking at the defects that the tenant has caused. This can often result in some areas whereby the tenant feels they are paying over the odds for the dilapidation in question, or alternatively are paying for issues or defects that pre-existed their tenancy and tenure of the property.
How Can I Avoid Extensive Dilapidation Schedule Claims?
This will very much come down to preparation. The best advice we would give commercial tenants here at Stokemont would be ensure they have some form of Schedule of Condition prepared prior to taking occupancy of the property.
While this may seem relatively unconventional and uncommon, in doing this they are going to ensure they are not held liable for issues and defects that pre-existed their occupancy.
Furthermore, it is going to ensure there is a widely accepted benchmark of condition for the landlord and tenant to work off respectively.
Ideally, this Schedule of Condition would be appended to the Lease agreement, thereby ensuring that both parties can legally rely on it at a later date.
Schedule of Dilapidations are one of the main commercial services that we undertake here at Stokemont. If you would like to discuss how our surveyors can be of assistance to you, please feel free to get in touch with us today or pop us an email. We will be more than happy to assist and advise you.
