Blog | Lease Advisory | Owner Dilapidations

Trips and Tips for Landlord Dilapidations

What are dilapidations for?

Dilapidations refers to the condition of a tenanted property during its occupancy and lease expiry and landlords should be compensated if the tenant breaches the lease clauses regarding repairs, decorations, reinstatement etc. ​

The tenant either puts the property back into repair with alterations reinstated in compliance with their obligations, or they pay the landlord a suitable, agreed, cash sum in lieu of leaving their premises ‘dilapidated’.

What could go wrong?

That depends upon how and what is written into the lease.

It also depends upon a landlords intentions once the premises are returned vacant.  There are limits on what landlords can recover as ‘damages’ if the tenant does not carry out the necessary repairs (as enshrined in the Landlord and Tenant Act 1927), i.e. if no provable loss, then no legitimate claim.

 

Here are some hints and tips

And above all, plan ahead

When a tenant leaves, their responsibility is to repair the property, not improve it, and disputes may arise over whether works amount to repair or improvement – this may impact on how the premises may be returned to you and your proposed remedies.

Drafting the lease at the outset with well-defined dilapidations clauses is recommended, to maximize a dilapidations claim and avoid compromises and potential litigation down the line. ​

​Plan your strategy well ahead of the lease expiry. Consider factors such as market trends and your refurbishment prospects and the tenant’s objective, all of which will steer the direction of travel of the dilapidations claim.



What should I do next if I have a Dilapidations claim?

We have put together a helpful guide, that if followed, should reduce future capital expenditure and improve asset performance.

Dilapidations - Everything a Landlord show know

James Acock

Partner Lease Advisory & Business Rates

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