What are Dilapidations?

The term is normally used to cover defects or disrepair which you as tenant will be required to deal with or pay to have remedied when you vacate the premises that you have leased.

When do I need to start thinking about dilapidations?

Before you take a lease. A survey will establish the condition of the premises , giving an indication of work that may be needed, both immediately and later.

If the premises are already in bad repair, special considerations apply (see below).

During the term of the lease, regular or planned maintenance can avoid greater expense later. 

What if the premises are in a poor state at the outset?

Most commercial leases require the tenant to put and keep the property in repair.

Unless you and the landlord specifically agree otherwise, the fact that the premises were in a poor condition when you took them on is irrelevant.

You still have to put them right.

So negotiate for a lower premium or a lower rent to compensate for costs that you face.

Alternatively, persuade the landlord to agree that the premises be returned at the end of the lease in a condition similar to the state in which you took them.

In this case, after you have had the premises surveyed, make sure that their condition is established, recorded and attached to the lease as a "schedule of condition". 

Find an RICS member

If you want to find independent, impartial advice from a qualified professional with good local knowledge, contact us.

To find a chartered surveyor in your area visit www.ricsfirms.com

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