Dilapidations: a quick guide
4-minute read
What are Dilaps any way?
Dilapidations are best described as lease exit costs to the tenant who must restore the property to its pre-let condition, which could mean repairing any damage caused or undoing any cosmetic alterations.
What are common covenants in lease that relate to dilapidations?
Key covenants typically include the tenant’s duties to redecorate the property, repair any damages, restore any modifications made, adhere to legal requirements, and ensure the property is returned to the landlord in the agreed condition.
All these covenants are focused on maintaining the overall state of the premises throughout the lease period.
What happens during dilapidations?
If the landlord suspects that the tenant has not complied with their lease obligations, they have the right to inspect the property or hire a surveyor to conduct the inspection on their behalf. After the inspection, the landlord will usually issue a schedule of dilapidations, outlining any breaches.
The cost of this inspection and preparing the schedule can typically be recovered from the tenant, if specified in the lease agreement.
What is a schedule of dilapidations?
A schedule of dilapidations is an official report that outlines the specific repairs and actions needed to return the property to its original condition, as per the lease agreement.
The report details the exact breaches, the required remedial actions, and estimated costs. If the tenant does not complete the necessary work, the schedule can serve as a basis for financial negotiations or claims.
What happens if the tenant fails to comply with schedule of dilapidations?
Failure to comply with the schedule of dilapidations can result in several remedies for the landlord. One option is for the landlord to carry out the necessary repairs at the tenant’s expense if the lease includes a specific clause. This clause, referred to as the Jervis and Harris clause, stems from a 1996 court case and is widely used in dilapidations situations.
What if a tenant believes that dilapidations are unfair?
It’s always advisable to seek professional advice prior to entering a lease, however, if a tenant believes the dilapidations schedule is unfair, it is recommended to consult with a specialist solicitor or building surveyor to address potential issues and minimise risks.
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