Commercial Property Dilapidations: A Guide for Tenants and Landlords
Commercial dilapidations can cost tens of thousands at lease end. Our chartered surveyors at Tonbridge Surveyors guide both landlords and tenants through this complex area.
What Are Dilapidations?
Dilapidations refer to breaches of repairing covenants in a commercial lease. At lease end, landlords prepare schedules of dilapidations detailing required repairs, with tenants liable for costs.
Types of Dilapidations
Interim Schedule
Served during the lease term to highlight ongoing repair breaches and encourage tenant compliance.
Terminal Schedule
Served at lease end detailing all disrepair and tenant's obligations. Most common and often most contentious.
Section 18 Valuation
Assessment of diminution in property value caused by breaches. Limits landlord's claim to actual loss suffered.
For Tenants: Protecting Your Interests
- Commission schedule of condition at lease start (records property state)
- Understand your repairing obligations in the lease
- Maintain the property throughout the lease term
- Instruct your own surveyor when schedule received
- Challenge unreasonable or betterment claims
- Negotiate settlements where appropriate
For Landlords: Recovering Costs
Our chartered surveyors help landlords:
- Prepare robust schedules of dilapidations
- Document all breaches with photographs
- Calculate appropriate repair costs
- Follow the Dilapidations Protocol
- Negotiate fair settlements
- Provide expert witness services if disputes arise
The Dilapidations Protocol
The pre-action protocol provides a framework for resolving disputes:
- Landlord serves schedule within reasonable time (usually 56 days)
- Tenant responds within 56 days
- Parties negotiate settlement
- If unresolved, proceed to mediation or court
Typical Dilapidations Costs
Dilapidations claims range from £10,000 to £500,000+ depending on property size and condition. Early professional advice minimizes liability for tenants and ensures fair recovery for landlords.
FAQs
Tenants: Ideally 12-18 months before lease end to assess liability and plan repairs. Immediately upon receiving a schedule.
Landlords: 3-6 months before lease end to prepare schedule and serve promptly.
Expert Dilapidations Advice
Tonbridge Surveyors' chartered surveyors provide comprehensive dilapidations services for commercial properties across Kent. We act for both landlords and tenants, ensuring fair outcomes.
Conclusion
Commercial dilapidations require specialist knowledge. Whether you're a landlord seeking to recover costs or a tenant managing liability, professional surveyor advice is essential. Contact Tonbridge Surveyors for expert dilapidations services.