If you’re the landlord of a commercial property, you need to make sure your tenant is contractually obliged to cover the cost of any damage caused to the property while they’re renting it from you. Any necessary works for which the tenant is responsible are known as dilapidations.
Before the lease start date, you should instruct an RICS Chartered Surveyor to perform a Schedule of Condition, which records the current condition of the property. At the end of the tenancy, you might want to get another dilapidations survey to see whether or not your tenant has damaged anything or carried out alterations that need repairing.
Likewise, if you’re a tenant who has been served with a Schedule of Dilapidations (the document outlining what works you’re responsible for) you can instruct a Chartered Surveyor to do a dilapidations survey if you believe the claims are unfair.
Dilapidation surveys are often asked for by landlords in most cases but they could also be very beneficial to tenants in several different situations as well. Having a Chartered Surveyor conduct a dilapidation survey means that they will look at each and every room in your property separately and then asses them including:
In essence, your Chartered Surveyor will view every visible area of your property. They might examine any adjoining properties to document their condition also.
Landlords looking to check the condition of a property prior to leasing may utilise a dilapidation survey report in their lease contracts. After the lease, a dilapidation survey report can help landlords to determine how ‘up to scratch’ a tenant has been with their obligations. If you are unhappy with the state your property has been left in, you’ll need your Chartered Surveyor to prepare a Schedule of Dilapidations, which makes a record of damage and estimates a cost for any repair or renewal work.
When creating a Schedule of Dilapidations, landlords cannot make money off of tenants. They can ask for reimbursement based only on the price of fixing what’s wrong, or for any other financial losses, including:
When the tenancy ends, the surveyor will question the landlord about their future plans for the property. For example if you have plans to refurbish the property then your tenant is not expected to pay for the refurbishment. The landlord needs to be honest or they may face legal repercussions.
Dilapidation surveys protect both landlords and tenants legally. While mainly performed on commercial properties, surveyors can perform them on residential properties as well due to the fact that the Dilapidations Protocol procedures are most likely to be the best way of resolving residential disputes.
Ensure your leaseholders meet their obligations: it is always a possibility that your leaseholder will ruin your property or make changes you would not make. If they do, they need to have a legal duty to fix it or put it back the way it was so you don’t have to pay for it.
Contractual obligations: if your lease agreement doesn’t say that the leaseholder has to maintain the property, you might not be able to recover money your leaseholder owes you for damages when the lease ends.
Recording Information: it’s important to have an official inspection of your property before your leaseholder moves in. If you can’t prove that your leaseholder was responsible for the damage during the lease maybe, then you will not collect everything you could have.
Avoid unnecessary claims: to avoid your landlord overclaiming on alleged repair costs, you may want to consider having a dilapidation survey carried out by a Chartered Surveyor before your lease comes to an end.
Controlling repair works: by making repairs and undoing alterations yourself before receiving a Schedule of Dilapidations, you are free to use cheaper contractors instead of paying for your landlord’s more expensive contractors.
Limit legal costs: disputing a claim can be expensive. If you would like to avoid legal costs and court proceedings you might consider instructing a chartered surveyor to carry out a dilapidation survey. It should be noted that the majority of disputes are settled out of court using an Alternative Dispute Resolution (ADR). Your surveyor can help you through the process of agreeing a settlement using expert determination, mediation or arbitration.
Whether you are a landlord who needs to establish your tenant’s dilapidation liability or a tenant that believes their dilapidation liabilities have been unfairly represented by way of a Schedule of Dilapidations, we can assist. Call us if you require guidance or want to arrange a free quotation.
