Dilapidations are a critical issue for both landlord and tenant.
Practically speaking, dilapidations are the costs that the tenant must pay at the end of the lease to put the property back to an acceptable state or to remove or put right alterations made during occupation. These costs can frequently be a shock to the tenant who might not have had a strategy in place to maintain the building according to the lease conditions.
Expert advice from a specialist building surveyor and sound financial planning at the outset can go a long way to offset this. Our building surveying team is well versed not only in providing dilapidation assessments and reviewing schedules of dilapidation but also in negotiating to achieve a fair and accurate settlement, whether acting for the landlord or tenant.
When acting on behalf of the tenant we will analyse the lease to determine the tenant’s obligations and assess the potential liability that will become due at the end of the lease. If a schedule of dilapidations has already been served, we review the accuracy of the schedule of dilapidations produced by the landlord and then negotiate with the landlord on the tenant’s behalf to reach agreement.
Alternatively, when acting for the landlord, we can carry out an assessment of dilapidations to ensure that the tenant has complied fully with all covenants set out in the lease (such as decoration, repairs, alterations, statutory compliance issues, yielding and reinstatement).
The building surveying team provides a full schedule of dilapidations and budget cost figures for the works required and then negotiates with the tenant to reach a final settlement and determine the most appropriate way to proceed. We can assess and sign off works carried out by the tenant or project manage all building works on the landlord’s behalf.