Dilapidations are any breaches of the lease contract, due to the condition of the property during or near the end of a lease. Dilapidations can occur due to absent or poor maintenance, repairs required in the conditions of the lease or by mistreatment of the property.
Dilapidation is a complicated issue due to the calculation of the loss of value to the property and also due to the calculation of repair to set right these issues. Our Schedule of Dilapidation reports can be prepared to support either the tenant or the landlord.
The Landlord needs to ensure that the property is maintained correctly in accordance with the repairing covenants within the lease. An interim schedule can be prepared to focus the attention of the tenant on existing problems, hopefully before the property falls into disrepair.
A final schedule of dilapidation with costings will identify items of disrepair to be made good by the tenant in order to protect the asset value to the landlord at the expiration of the lease. If the tenant has not complied with their repair obligations, the schedule can be used to form the basis of a financial claim by the Landlord.
Landlords can sometimes present large dilapidation claims at or very near to the expiry of a lease. It is important that the tenant ensures the schedule only includes items of disrepair relating to the repairing obligations of the lease and that these are priced correctly. A Schedule of Dilapidation is crucial for tenants as any works not carried out by the tenant before the termination date of the lease can be claimed as damages by the Landlord (Terminal Dilapidations Claim). This can lead to Court proceedings if left unpaid. We can negotiate on the behalf of tenants to ensure damage limitations.