In today’s Property Surveying blog post, we are going to be taking a look at commercial property matters and in particular dilapidations.
Dilapidations schedules and surveys are required when the tenant who has been residing in the property, is due to leave the premises.
Alternatively, they may be required if the tenancy and lease is approaching or has reached its expiry, with the landlord wanting to ensure that the tenant is up to date with all dilapidations on site.
Let’s start with what dilapidations are.
What Are Dilapidations?
Dilapidations are defects and issues that will occur to the property during the course of the tenant’s occupancy and tenure.
It is more likely than not, that the tenant will occupy the property on a fully repairing and ensuring (FRI) basis.
In practice, this means that the tenant is not only responsible to pay the landlord’s rent every month or quarter, insure the building and premises, they are also responsible and liable for the upkeep, maintenance and repair of the property.
This means that when issues such as disrepair, defect or general decline of the property occurs, it is the tenant’s duty and responsibility to rectify and make good.
How Will The Landlord Know If There Is A Dilapidation?
Generally speaking, if a tenant is going to occupy a property for an extended period of time, while they will want to ensure that the overall upkeep of the property is considered, more often than not, it is likely to be low down on their list of going concerns.
This can often mean that parts of the property which are not necessarily on show to the general public can easily become neglected and fall into disrepair.
In order for the landlord to establish if indeed there is dilapidations at the property, they will do this by instructing a dilapidations surveyor to visit, advise and inspect.
The dilapidations surveyor will methodically and comprehensively go through the property step by step and item by item.
The ultimate aim being a dilapidations schedule, or survey, which will ensure that all issues and defects are noted in an easy to follow and understand table or chart format.
In the first instance it is usually the landlord who covers the cost of the dilapidation survey, however the lease is likely to allow the landlord to recover and recoup the costs in having that survey undertaken.
What Happens Once the Dilapidations Survey is Prepared?
Once the dilapidations survey has been prepared, at this stage the surveyor will naturally share it with their client, the landlord.
It is also likely that at this stage a landlord is going to present that schedule or survey directly to the tenant asking him to review and respond.
Alternatively, the landlord may ask the tenant to reimburse them for the costs to rectify and make good the dilapidations as per the dilapidations schedule.
Dilapidations are one of the many services that we provide here at Stokemont.
Our building surveyors have been lucky enough to undertake dilapidations surveys across England and Wales.
We have not only covered your small retail units, we are also very proud to have dealt with commercial, agricultural and high street locations.
If you would like to discuss dilapidations matters with our team of experienced and qualified building surveyors here at Stokemont, please feel free to give us a call today. We will be more than happy to assist and advise you.
