The term ‘dilapidations’ can often evoke feelings of uncertainty and financial concerns for both landlords and tenants. Understanding what dilapidations are and how they affect both parties will help to navigate these tricky situations and help minimise disputes and liabilities.
What are dilapidations?
Dilapidations refers to a tenant’s failure to meet their obligations regarding the condition of the property, as outlined in their lease agreement.
This typically includes any damage and disrepair to a property beyond reasonable wear and tear, for which the tenant is typically responsible for according to the terms of their lease.
These obligations can include repairing damage, reinstating alterations made during the tenancy, or redecorating the premises, to name a few.
When do dilapidations claims arise?
When a tenant fails to uphold these responsibilities, particularly towards the end of their lease, the landlord may then pursue a dilapidations claim to recover costs to bring the property back to the condition stipulated in the lease.
Our national dilapidations team, formed of RICS chartered surveyors, has decades of experience in advising clients on their respective responsibilities under a commercial lease.
The Landlord’s perspective:
Dilapidations claims help landlords ensure their property is returned in the agreed-upon condition. We can assist landlords with the following key aspects:
- Lease Advice: Clearly defining tenant responsibilities in the lease agreement to ensure clarity of expectations and avoid ambiguity.
- Dilapidations Liability Assessments: Accurately assess the extent of the tenant’s breaches.
- Preparing a schedule of dilapidations: To outline the required repairs and associated costs.
- Negotiation: Reaching a fair settlement with the tenant.
- Legal Action (if necessary): We hope it doesn’t get to this stage, but if negotiation fails, we can support you with legal action to recover the costs.
The Tenants perspective:
Tenants need to carefully read their lease in order to understand their obligations to avoid and minimise dilapidations claims. Our team can assist tenants with:
- Understanding Lease Obligations: We carefully review the lease to understand repair and reinstatement responsibilities.
- Dilapidations Liability Assessments: We provide independent assessment of potential liabilities.
- Lease Exit Strategy: We can help you plan well in advance of the lease end to address any necessary repairs.
- Defending Schedules of Dilapidations: We challenge unreasonable or inflated claims.
- Negotiation: We advocate for a fair and reasonable settlement with the landlord.
With our enviable track record, we provide expert advice and representation to both landlords and tenants facing such claims, ensuring the best possible outcome.
To find out more about our dilapidations services, please click here: Trident Dilapidations Services.