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Dilapidations Discussions

Jun 9, 2023


In today’s Property Surveying blog post, we are going to be talking about property dilapidations.

Property dilapidations will come into play as the tenant is approaching the end and termination of their commercial lease.

As part of the landlord’s procedures to ensure that the tenant hands the property back to them in a reasonable and fair condition, the landlord will usually want to have a building surveyor complete some form of terminal Schedule of Dilapidations, or Schedule of Dilapidations report.

This will go through the property in an item by item manner ensuring that all of the issues that have resulted and arisen due to the tenant’s occupancy are rectified and made good.

The landlord will then present this Schedule of Dilapidations to their tenant giving them the opportunity to remedy and rectify.  Alternatively setting out the surveyor’s estimated cost for the landlord to remedy and rectify themselves.

These costs can include, however are not limited to, instruction costs, cost of materials, professional fees, contractor preliminaries, statutory consents, periods of vacant possession.

In many cases, the tenant will want to enter into some form of discussion with their landlord in an effort to mediate and resolve the various different points that have been set out by the Schedule of Dilapidations report.

Here at Stokemont, we think it is imperative and key for landlords to engage in discussion with their tenants.  By doing so, it will ensure that both parties are able to avoid unnecessary legal and professional fees.  These fees being in the form of surveyor and solicitor costs.

Furthermore, it is likely to ensure that the matters that have been raised in the terminal Schedule of Dilapidations are more likely to be rectified or resolved. 

This will ultimately place both parties, landlord and tenant, in a better position as they approach the end of their business contract.

The dilapidations protocol also advises that parties have some form of attempt at mediation prior to legal proceedings. 

This is again a firm nudge and indication that both parties should be prepared to enter into some form of discussion to best aid resolution of the matter at hand.

Dilapidations matters can often be confusing and concerning for both landlord and tenant alike.

The tenant will want to ensure that they are not unreasonably held accountable for issues and defect that pre-dated their occupancy.  Equally, the landlord will want to ensure that they are given their property back in a fit, fair and reasonable condition, thereby ensuring that they are able to quickly and smoothly re-let the property to another commercial tenant, without an extended period of redecoration taking place.

If you would like to discuss dilapidations reports with our team of experienced, qualified surveyors, please feel free to get in touch with us today, we will be more than happy to assist and advise. 

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