What is a Schedule of Dilapidations?

The issue of Schedules of Dilapidation is a complicated one and surveyors can be used to support either the tenant, or the landlord, in varying instances.

Landlord - The landlord needs to ensure that his property is maintained properly and should ensure proper dilapidations practice by warning tenants in advance of neglect. Any risk to the asset value of the property is thus arrested before a problem becomes extensive. This is best done by the service of an interim schedule of dilapidations which, although more limited than a final schedule, will usually focus the attention of the tenant on existing problems.

A final schedule of dilapidations 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. Where the tenant has not complied with his repairing obligations, the schedule can often form the basis of a financial claim by the landlord.

Tenant - Tenants are sometimes presented with very large dilapidations claims by their landlord at or very near to the expiry of a lease. In such circumstances, the validity of the landlord’s claim should be investigated with reference to specification and pricing of works involved, to the scope of repair obligations undertaken by the tenant, and to the loss in value of the reversion. When a claim is submitted in good time prior to lease expiry, it is sometimes beneficial for the relevant repair works to be carried out less expensively by the tenant.

Most members of the Property Surveying network will be able to carry out Schedules of Dilapidation Reports, offering professional advice tailored to protect the client’s interest, be they landlord or tenant.