As a landlord it is likely that, at some point, you will need to produce a schedule of dilapidations. A schedule of dilapidations is a document that outlines the repairs, reinstatement and maintenance that a tenant is required to carry out on a property during or at the end of their lease term.
It’s important to have a basic understanding of how they work, to ensure that the tenant meets their obligations and the property is maintained (or handed back) to a satisfactory standard. In this article, we’ll provide a brief guide on schedules of dilapidations, including what they are, how they work, and how to choose a dilapidations surveyor.
What are dilapidations?
‘Dilapidations’ are claims for damages made by a landlord, as a result of a loss they suffer because a tenant hasn’t maintained their property properly. These claims usually fall within the categories of ‘repair’, ‘reinstatement’ and ‘redecoration’.
What is a Schedule of Dilapidations?
A schedule of dilapidations is a document that sets out the repairs and remedial work that a tenant is required to carry out at the end of their lease term. The schedule will also detail any alterations made by the tenant which need to be removed. The document is typically prepared by a surveyor and serves as a formal notice to the tenant.
A schedule of dilapidations can also be made during a lease term; schedules made on this basis are referred to as ‘interim’ dilapidations.
The schedule of dilapidations will outline any damage or defects that need to be addressed, along with an estimate of the cost of the repairs. The document will also include any other losses made to the landlord as a result, such as professional fees or VAT.
How Does a Schedule of Dilapidations Work?
A dilapidations surveyor will review the lease, and make an inspection of the property. They’ll then produce the schedule, which is a large list of disrepair items with the repairs required, and the costs involved.
Once a schedule of dilapidations has been prepared, the tenant will be given a certain amount of time to respond. They may choose to carry out the repairs themselves or engage a contractor to do so.
If the tenant chooses to carry out the repairs, they will need to ensure that the work is completed to a satisfactory standard. The landlord may request evidence of the repairs, such as receipts or invoices.
If the tenant disputes the schedule of dilapidations, negotiations may take place to resolve any disagreements. If an agreement cannot be reached, the landlord may need to take legal action to recover the costs of the repairs.
Choosing a Dilapidations Surveyor
When choosing a surveyor to prepare a schedule of dilapidations, it’s important to select a qualified and experienced professional. Look for a surveyor who specialises in dilapidations, as they will have the expertise to ensure that the schedule is accurate and meets legal requirements.
It’s also a good idea to choose a surveyor who is a member of a professional organisation, such as the Royal Institution of Chartered Surveyors (RICS). This ensures that they adhere to a strict code of conduct and have a commitment to providing high-quality service.
When working with a dilapidations surveyor, it’s important to provide them with all the necessary information, such as the lease agreement, any prior inspection reports, and details of any previous repairs carried out during the lease term.
Schedules of dilapidations are a crucial part of a commercial lease agreement, and it is important to have a basic understanding of how they work. By understanding the process and choosing a qualified surveyor to prepare the schedule, landlords can ensure that the tenant meets their obligations and the property is maintained to a satisfactory standard.
Practical Surveying are highly experienced in dilapidations matters. If you’re unsure about the process or need guidance, please get in touch.