Carrying out dilapidations on commercial properties is an essential service that we carry out at The Complete Property Group. Property dilapidations relate to the maintenance and repair work that will be required during or at the end of a commercial property lease. This is where a landlord will seek to have the tenant carry out their repair obligations under the terms of the lease. The building is a significant investment for the landlord and it is therefore essential the property is maintained to a high standard.

Schedule of condition

Standard practice for commercial properties at the start of a lease is to draw up a schedule of conditions. Commercial properties are important because they enable businesses to run and be profitable. The building, therefore, has a value that goes beyond its structure. This is the reason why dilapidations can become contentious because they can result in a claim. The condition of their property is set out in a schedule at the start of the lease. This schedule can then be referred to by both parties to inform dilapidations work and refers to the process landlords followed to set out issues in respect of any damages or disrepair. A tenant’s failure to return the property at the end of the lease as it should be can potentially end in costly disputes.

How are dilapidations calculated?

At the end of a tenant’s lease, an assessment is carried out to calculate the value of a commercial property minus the cost of its repairs. These findings will be contained in the report with a full explanation of how they were ascertained. This will be an independent document that shows the condition of commercial property at a point in time outlining existing damages. This document can be used in conjunction with a schedule of conditions, and it will therefore assist in highlighting the areas that need dilapidation works.

Should you worry about dilapidations?

Dilapidations are a standard process when a commercial lease is coming to an end. That said there are very specific standards and conditions that must be met to appease the landlord. Most landlords would ensure a schedule of conditions was drawn up at the commencement of the lease and agreed upon by both parties. In terms of the tenant, they should also have the building checked and serviced at the commencement of the lease and have any pre-existing defects incorporated into a schedule of conditions. This would then limit their liability at the end of the lease and ensure they are not liable for repairs that already existed.

Preventing costly dilapidations

The easiest way to manage this both throughout the terms of the lease and towards the end is to engage a professional commercial building services company. This means throughout the terms of the lease that the tenant can keep on top of any damages or repairs and prevent costly dilapidations at the end. A commercial building’s state of repair is important to both tenant and landlord, continual planned maintenance is the best solution for both parties.