In this week’s instalment of our weekly surveying blog, we are going to be discussing commercial property dilapidations.
Dilapidations are the resolution procedure in place for both landlords and tenants, as the contracted lease term approaches its completion.
The purpose and aim of dilapidations is to ensure that the tenant rightfully reimburses their landlord for any costs or issues associated with the course of their tenure of the property.
Equally, it is to ensure that the landlord gives their tenant sufficient notice of the issues that have arisen to their property, thereby giving the tenant a rightful opportunity to remedy, rectify and make good.
One of the key issues we are faced with on a daily basis here at Stokemont, through our dilapidations services, is when both a landlord and tenant have some form of disagreement on the overall scope of the dilapidations and the overall quantum of the dilapidations.
We are now going to take a closer look at this, in the hope of fully informing and advising you.
I disagree with the Landlord’s Dilapidation Figure
This is not uncommon, landlords will often be guided by the building surveyor that they instruct to complete the dilapidations inspection and survey.
This surveyor will methodically and carefully work their way through the property, noting and making record of all of the defects, breaches and dilapidations that they find.
In doing this, they would have first cross-referred with the tenant’s lease, to ensure that they have a full understanding of exactly what the tenant’s repairing responsibilities are for the property.
Once they have confirmed this, they will then prepare a comprehensive dilapidations survey, which carefully sets out all of the various breaches and issues that exist within the property.
This survey will be accompanied by a costed itinerary of works, collectively giving the landlord and tenant full insight into what to expect.
So, what happens if the Tenant Disagrees with this?
It is not all that uncommon, first and foremost the tenant will need to get their own surveyor to visit and assess the landlord’s surveyor’s findings.
At that point, if there are differing opinions between the landlord and tenant’s surveyor, a planned course of negotiation or discussion will take place.
This can be as simply as the two parties reviewing one another’s respective reports on their desktops, or alternatively, it can require a planned meeting between the two respective parties.
Landlord and tenant surveyors are naturally going to want to reach resolution, as it is in the interest of their clients, each party will therefore work proactively with one another to ensure this outcome can be reached.
If you would like to discuss dilapidations protocols or procedures with our team of experienced building surveyors here at Stokemont, please feel free to give us a call today.
