A landlord
has a responsibility to work alongside their tenants to make sure a property is
well maintained, and a tenant has a legal obligation to actively cooperate with
their landlord. When a tenant takes a commercial lease, there is obligations
for repairs and maintenance (known as dilapidations) during their time living
in the property.
The term
‘dilapidations’ references breaches of lease covenants in relation to the
condition of a property during the term of tenancy or when the tenancy ends.
This guide will provide information for tenants and landlords on factors to
consider when dealing with a dilapidation claim made by a landlord during or
near the end of a tenancy. Regardless of whether you are a tenant or landlord,
using a chartered surveyor when going through the process of a dilapidation
service is going to prove invaluable.
Terminology to familiarise yourself with:
The
following terms are frequently used when dealing with dilapidation services so
it's certainly worth familiarising yourself with them, as this will help
support your understanding and make the process much easier.
● A schedule of dilapidation -
the document created by a landlord (or surveyor) listing the
outstanding reinstatement or repairs estimating the costs involved.
● A quantified demand -
a document that sets out details of allegation. It’s prepared
for or on behalf of the landlord and issued at the end of the lease including
what the landlord considers to be a breach of the initial contract.
● A response -
this
is the reply from the tenant to the landlord in regards to the previous two
points mentioned.
● A scott schedule -
an extended version of the schedule of dilapidations.
● The dilapidation protocol -
documentation put in place by the Ministry of justice
clarifying the courts expectations of the landlord and tenant lease-end
dilapidations.
Tenants:
Before
signing a lease familiarise yourself with the terms above - this is to ensure
you have an understanding of what you’re going into. During the lease, factor
in the potential for future dilapidation implications prior to signing anything
so you can consider budgeting for this. Towards the end of the lease be aware
of any dilapidation work you have committed to completing. This can be a tricky
assessment to make so its advisable to seek the assistance of a chartered
surveyor. Your landlord may give you a notice to reinstate any alterations
you’ve made.
Landlords:
As
previously mentioned, you will need to provide your tenants with a due notice
so they can reinstate any alterations made to the property. You should then
issue a schedule of dilapidations and a quantified demand within 56 days
towards the end of the lease term. While preparing this document - your
surveyor will use an industry standard form to issue to them. The tenant will
have 56 days to issue a response.
Simon Levy Associates are a professional body of
Chartered Building Surveyors with a wealth of experience in this field. Whether
you’re a landlord or a tenant and require assistance in any kind of dilapidation
services,
get in
touch
today or
visit
the website
to find out more.
