What is dilapidation in property?

When a property requires repairs or reinstatement, this is known as dilapidation work. What it means in terms of commercial and residential domestic properties is very different. Because most dilapidations are the maintenance and repairs required at the end of the lease, this blog will focus on commercial building services. Commercial premises will have stipulations around the condition of the property at the start of a lease and how landlords expect tenants to return the property to them.

Schedule of condition

Because a commercial property enables businesses to run and be profitable, the building itself has value 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 generally set out in schedule at the start of the lease. The schedule of conditions is generally used 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 could potentially end in a dispute.

Keeping commercial properties in a good state of repair

The best way to approach dilapidation works on properties is to ensure the commercial property is kept in a good state of repair throughout the terms of the lease. Most landlords or property managers will engage a property management company. This means checking internal and external areas and pre-empting issues so that they’re not left till the end of the lease. Ensuring you have full visibility of the agreement and the state of the building at the start of the lease can ensure you’re able to keep on top of potential issues. Maintaining a commercial building to a good standard helps to keep it running correctly and remain financially viable and profitable. During the term of the lease, an occupier needs to plan commercial building solutions well in advance of the lease expiry, because their obligations around repair could seriously affect a business’s cash flow and the ability to meet the terms of the lease.

Health and safety

Complying with health and safety regulations will insure you avoid incidences of potential fines and jeopardise the safety of workers. Keeping on top of minor repairs with commercial building solutions reduces the risk of health and safety issues and those repairs becoming major. Near the end of the lease term, unless an occupier has completed all the repair work required under the lease, tenants will usually be issued with a schedule of dilapidations by the landlord – this is standard practice when commercial leases are coming to an end. It is in the interests of protecting your staff and your lease obligations to stay on top of these works throughout the lease.

At The Complete Property Group, we offer a range of Commercial Building Services designed to put your mind at ease. For example, our Block Maintenance services can be used to tackle issues such as pest control and fire hazards within your commercial property. One of our most popular Property Maintenance services is our Building Dilapidation Service – if you are Hampshire based, get in touch to see how we can help.

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