What are dilapidations?
Dilapidations refers to the condition of a commercial property during the term of it's lease. It can also be referred to as disrepair. During a tenancy landlords may agree a schedule of dilapidation, list of maintenance or outstanding repair and decoration with the tenants. This is a list of works that ensures that the tenant maintains the building in a good state of repair.
Before a tenant takes out a lease, it is necessary to agree the type of repairs that the tenant will be required to complete. Tenants may be offered a full repairing and insuring lease (FRI), in this lease a tenant is responsible for all of the internal and external repairs including the building structure. This requirement means you must hand the building back in exactly the same state that you were given it.
Failure to complete the dilapidations during the lease agreement may result in a reinstatement cost assessment from the landlord - specifying how much you have to pay to ensure the building is handed back as it was received. You may be liable for any damages that have resulted in your tenancy to the landlord.
Whether you are are investor or an occupier, dilapidations is an important part of your lease agreement and should not be under estimated in terms of financial significance.
When do I need to complete them?
It is always best to agree of Schedule of condition when you first sign up to a lease. This Schedule of condition will determine what you need to complete when you return the building. Dilapidations have to be completed before the building is returned to the landlord. If they are not completed and the result is remedial works that the landlord has to complete then serious financial implications could be incurred.
If you are provided with a Schedule of condition or schedule of dilapidation then you can pre-empt what is required in terms of the lease and you can ensure that by implementing pre planned maintenance or planned preventative maintenance these costs are kept to a minimum as you maintain the building works throughout the lease. This will help to keep the costs of the dilapidations down at the end of the term and prevent costs escalating as problems develop over the term of the lease.
How can I minimise the costs of dilapidations at the end of lease?
The simple answer to this is pre planned maintenance. By continous maintenance throughout the lease term you will keep dilapidation costs and time to a minimum and will reduce any nasty surprises at the end of the lease.
Should my Landlord be paying for these repairs?
It is all dependent on the type of lease that you have. A full repairing lease requires the tenant to complete the dilapidations and the landlord will expect the tenant to pay for the repairs, but a non repairing lease means the landlord is responsible for all repairs.
When should I complete dilapidations?
The best time to complete these dilapidations or any repairs that occur are steadily throughout the lease, otherwise it may come to the end of the lease and there may be some dispute as to what is required in terms of dilapidations. When you move out of the building you must leave the building as you found it, so if you put in meeting rooms or offices and kitchens then these will need to be removed, this may also mean ceilings and floors need repairing etc..Fortunately you now know a company that can help you with all of this...C|S|M.
Why should I talk to C|S|M about my dilapidations?
Because we are a fast and experienced team who can put your building back exactly as it was left and complete any necessary repairs easily and cost effectively. Why not give us a call and we can help you keep the landlord happy.