Avoiding dilapidations by being prepared

December 2011

Angus Taylor considers how tenants can significantly reduce the risk of dilapidation claims as market evidence suggests that landlords are being more aggressive in their dilapidation claims.

Often, amid the haste and disruption facing tenants when they move out of a property, many fail to take dilapidations into account – indeed it if often the last thing they think about. The reality is that buildings need to be returned to landlords at lease expiry in compliance with the lease requirements - otherwise tenants will need to pay, often significant sums, to cover the damages.

There are debates to be had about dimunition in value, but it is vital to understand your liabilities as early as possible, and for most leases this means you need to consider an assessment at least 12 months before the lease end or break date. You will almost certainly have significant work to do and you need plenty of time to plan and procure the work so that it is done economically when it suits you rather than in haste when both the landlord and contractors have the upper hand.

Remember also that if it is a break you are seeking to exploit, you need to keep a close eye on the timetable to serve notice and observe all the conditions required to make the break effective.

Planning ahead can enable you to keep your options open in terms of undertaking work yourself or agreeing a cash settlement with a landlord. In any case, adequate time should be allocated for negotiations between the landlord and tenant on the extent of the repairs required.

Tenants often fail to plan in advance and attempt to vacate their offices on the last date of the lease.  Forward planning is not only advisable, it is essential to alleviate hefty dilapidation costs. It also helps if businesses plan for any costs of maintaining their property assets on an on-going basis, giving them the full knowledge of projected costs to allow for future budgeting and protecting profit margins. 

Businesses would be well advised to seek to minimise property repair costs through an on-going programme of planned maintenance. This is particularly useful in such difficult market conditions when all firms are looking to cap spending and keep costs to a minimum.

For more information on how you could significantly reduce your risk of dilapidation claims contact Angus Taylor on 0845 200 6489 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it