What is a Schedule of Dilapidations?
A schedule of dilapidations is an assessment of a tenant’s breaches of their lease agreement, primarily in respect of their repairing, redecorating and reinstatement obligations. It is usually put together by a building surveyor.
Landlords can serve schedules of dilapidations either during the term (interim schedule) or at the end of a term (terminal schedule). Landlords can also sometimes serve repairs notices during the term obliging the tenant to immediately put in hand necessary repair works.
It is common practice for a landlord and a tenant to each appoint their own building surveyor to represent their interest.
Quite often it is the case that a negotiated financial settlement is the best solution, but sometimes implementation of the works might be more appropriate.
Dilapidations pre-assessments are also often very useful tools for tenants to proactively manage their forecasted exit costs. By putting ourselves in the shoes of the landlord we can review lease agreements and inspect properties to forecast what the landlord’s schedule is likely to contain, provide expected costings, highlight potential defences and an exit strategy. Undertaking this work early provides the best opportunities for an exit strategy.
Why use a Chartered Building Surveyor?
It is unfortunate to see that many tenants try to deal with this on their own and often undertake unnecessary work or pay over the odds to settle a claim financially. Proper experienced representation can save a fortune in costs.
Landlords often do not take advantage of the mechanisms in the lease to ensure that their asset is well looked after. Poor management of the lease and ignoring the provisions contained within it can sometimes lead to an unnecessary dilapidated property and an otherwise avoidable dispute at lease end.
There is a defined protocol for dealing with dilapidations, which building surveyors should be well aware of.
Early advice for either party is crucial in order to protect each party’s interests well in advance of lease expiry.
Why use DW Building Consultancy?
Having worked in large private practice firms for over 20 years, I have a wealth of experience acting for both landlords and tenants in respect of lease advisory services.
Having worked extensively on both sides of the relationship, I understand the tactics and defences for both landlords and tenants, throughout the life of a lease. Claims are rarely straight forward and do need careful thought, as a dilapidations schedule forms the basis of a legal claim for damages; and the claim is not simply the costs of the repair works.
I have the benefit of a broad view of the property industry having worked in multi-disciplinary practices and I use market intelligence to help identify strategies for dealing with dilapidations with the intention of avoiding legal action and obtaining the best solutions for my clients.
I am also able to act as Expert Witness in respect of disputes between parties.