Dilapidation Surveys

Dilapidations refers to the current state of repair of a property, and specifically the costs or works that are required to return a property to the state that it was in originally at Lease commencement.

The cost of any Dilapidations survey can depend on the size of the property being surveyed. We recommend getting in contact with our experienced team so that we can provide you with a personalised quote.

A Dilapidations survey also sometimes known as a ‘delaps survey’ is a highly detailed survey and report into the current condition of a building, from the physical structure and systems to issues involving furnishings and general wear and tear. They are generally undertaken during a Lease Term or towards the end of a tenancy.

A typical Dilapidations survey includes a full summary of all of the lease obligations, as well as a schedule that sets out the current breaches in relation to repair, reinstatement and decoration. It will also include a proposal that provides details on remediating the breach and associated costs.

Whether our client is the Landlord or Tenant, we recommend that dilapidations are considered well in advance of Lease end, to ensure the most favourable outcome on both sides.  For Landlords, it is very useful to know the condition of the building before the end of the Lease and ensure the Tenant has been fully notified of the works required.  Some Landlords prefer the works to be implemented and by notifying the Tenant early, the works can then be monitored to ensure defects are not hidden and the quality of work is adequate.  Other Landlords may prefer a cash settlement and by raising dilapidations early there is the option of negotiating an agreement with the Tenant.

Dilapidations surveys offer unbiased, professional opinion – this can be invaluable when attempting to manage disputes between a tenant and a landlord. These surveys can be commissioned by both landlords and tenants, helping both to ensure that tenants are accountable for the state of the property, and also making sure landlords are making a fair assessment regarding costs.

If the premises are left in a poor state of repair or damaged, a tenant could be liable to pay their landlord damages in order to cover the costs of returning the property to its original state. Damages can include not only the costs of repairs, but also loss of rent (where repairs delay a new tenant moving in), payment of rates, and professional fees.

Dilapidations can help tenants, if they believe a landlord is charging them unfairly for the dilapidations – for example, by charging them to repair damage to the property that already existed.

Over the last 12 months we have: –

• Saved an average of 50% on all settlements
• Handled over 150 claims for Tenants, with 90% agreed before Lease termination
• Prepared and managed over 50 claims for Landlords, with 75% settled within 3 months.
• We have project managed works for Landlords to allow premises to be relet without additional capital contribution.

Dilapidations surveys are typically carried out during, and at the end of a tenancy to establish the current condition of a property, or to understand the costs involved in returning the property to its initial condition.

We advise you are proactive if you do not intend to renew your lease and seek advice on Dilapidations well in advance of lease end, before the Landlord submits a claim. This will give you time to either negotiate a settlement without doing all the works or give you time to do the works at the best cost.

If you cannot agree to a compromise with your landlord over the Dilapidations then the case could end up in court. However, this a very expensive and time-consuming option which the landlord will generally avoid. Talk to your own surveyor and solicitor if this appears to be the direction things are moving.

It is always advisable to take professional advice before you accept your landlord’s Dilapidations claim in full. There may be elements of the cost which are inflated, or the claim might include items which are not relevant to your tenancy.

You should receive a Dilapidations claim from your landlord near the end of your tenancy, giving you enough time to respond and either agree a settlement or carry out the required works before Lease End.

There is not however any requirement for a landlord to notify you of the works needed and you should be aware of your lease obligations and implement the works required. In some instances, a landlord will intentionally avoid notifying the works, as they prefer to claim for the cost of these after the lease has ended and you are no longer able to implement them.