Dilapidations FAQs – Frequently Asked Questions
Expert guidance from your RICS Chartered Building Surveyor
- What is a schedule of dilapidations?
A schedule of dilapidations is a formal document typically issued by a landlord towards the end of a commercial lease. It sets out the tenant’s alleged breaches of lease covenants relating to the repair, decoration, and reinstatement of the premises. The aim is to restore the property to the condition required by the lease.
- When should I issue a schedule of dilapidations?
Landlords usually issue a schedule of dilapidations towards the end of the lease term or after the lease has ended. However, an interim schedule can also be issued during the term if the property has fallen into disrepair. It’s important to seek professional advice to time this appropriately and ensure the content is accurate and enforceable.
- How do I respond to a schedule of dilapidations?
If you receive a schedule of dilapidations as a tenant, the first step is to seek advice from a Chartered Building Surveyor. They will assess the claims, compare them to the lease terms, and help you prepare a response or negotiate a settlement. Never ignore a schedule—it could lead to legal proceedings.
- Can I do the work on the schedule?
Yes, as a tenant you may be able to carry out the necessary works before the lease ends by remedying the breaches, depending on the agreement with the landlord. However, the work must meet the required standards, and it’s advisable to consult a surveyor to avoid disputes later.
- Can I agree a financial settlement?
Yes, it’s common for tenants and landlords to agree a financial settlement in lieu of carrying out the works, using a “dilapidations settlement.” A surveyor can help you negotiate a fair amount based on the cost of the repairs, the lease terms, and applicable legal limitations.
- How do I know if the schedule of dilapidations is fair and reasonable?
A RICS Chartered Surveyor can assess whether the claims are valid and proportionate. Items listed in a schedule aren’t always justifiable, so tenants are protected by the Dilapidations Protocol and Section 18(1) of the Landlord and Tenant Act 1927, which can limit claims to the actual loss in value.
- What if the accommodation was in poor condition when I moved in?
If the property was already in disrepair when you took on the lease, you are not liable for those issues. If you have a photographic schedule of condition attached to the lease, there’s no argument. This document can be crucial in reducing or defending claims.
- Who can help me respond to a schedule of dilapidations?
A RICS Chartered Building Surveyor can advise on dilapidations matters. They can interpret the lease, inspect the property, challenge unjustified claims, and negotiate with the landlord’s surveyor on your behalf to achieve a fair outcome.
Hopefully, these dilapidations FAQs have given you the answers you want. If not, there are more dilapidations FAQs we can give you the answers to, feel free to get in touch, without obligation.
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