Dilapidations Explained – A Guide for Commercial Tenants & Landlords
In commercial property leases, the responsibility for maintaining the premises typically falls on the tenant, not the landlord. Dilapidations refer to breaches of the lease agreement relating to repairs, reinstatement, alterations, and decoration. If a tenant fails to uphold these obligations, the landlord can make a claim, which could result in costly repairs or financial settlements at the end of the lease.
Understanding the dilapidations process is crucial for both tenants looking to reduce their financial exposure and landlords ensuring their property is maintained. At Survey Network, we connect clients directly with self-employed, independent RICS surveyors who specialize in dilapidations surveys, helping both parties navigate claims efficiently and fairly.
When Can a Dilapidations Claim Be Made?
A dilapidations schedule can be served at two key stages:
1. During the Lease – Interim Schedule of Dilapidations
Landlords may issue an Interim Schedule of Dilapidations if they believe the tenant is not properly maintaining the property. This document typically highlights specific repair issues but does not include financial penalties, as the goal is to prompt the tenant to carry out necessary works before lease expiry.
2. At Lease End – Terminal Schedule of Dilapidations
A Terminal Schedule of Dilapidations is issued towards the end of the lease—typically 18 months to 3 years before expiry. This detailed report lists all required repairs, reinstatement work, and decoration obligations, along with associated costs.
Landlords must submit the final claim within 56 days of lease termination, as per the RICS Dilapidations Protocol. Additional costs may be included, such as:
✔ Loss of rent – If the property cannot be re-let due to disrepair.
✔ Service charges & business rates – If the landlord incurs extra costs while waiting for repairs.
What’s Included in a Dilapidations Schedule?
The obligations outlined in a dilapidations claim depend on the specific terms of the lease, but common clauses include:
1. Repair & Maintenance
Most leases require tenants to maintain the premises in good and substantial repair. This includes:
✔ Fixing worn floor coverings, damaged doors, or broken windows.
✔ Repairing roof leaks or brickwork cracks.
✔ Ensuring the premises are left clean and tidy.
2. Alterations & Reinstatement
Tenants must return the property to its original state before vacating. Any changes - such as partition walls or installed fixtures - must be removed unless agreed otherwise. If extensive modifications were made, the tenant may need to obtain a License to Alter during the lease.
3. Decoration Obligations
Most leases specify when and how decoration should be carried out, including:
✔ External redecoration – Painted render, timber windows, and masonry.
✔ Internal finishes – Walls, ceilings, skirting boards, and doors.
✔ Industrial & warehouse spaces – Repainting concrete floors and radiators.
4. Yielding Up (Vacant Possession)
At the end of the lease, the tenant must vacate the property completely, removing all furniture, equipment, and belongings. The landlord has the right to remove any remaining items at the tenant’s expense.
5. Indemnity & Cost Recovery
Most leases allow landlords to claim back costs related to dilapidations, including:
✔ Repair works & reinstatement.
✔ Surveyor & legal fees.
✔ Loss of rent and associated costs.
How Does the Dilapidations Process Work?
Step 1: Landlord Issues a Dilapidations Schedule
A Scott Schedule (or Schedule of Dilapidations) is issued to the tenant within 56 days of lease expiry. This detailed list of defects includes estimated repair costs based on RICS standards.
Step 2: Tenant's Response & Negotiation
Tenants can either:
✔ Carry out the required repairs before lease end to reduce liabilities.
✔ Negotiate a financial settlement with the landlord.
✔ Challenge specific claims based on future landlord plans (supersession) or valuation impact (diminution in value).
Step 3: Appointing a Surveyor to Negotiate the Claim
Most landlords and tenants appoint RICS-qualified surveyors to negotiate on their behalf. A skilled surveyor can help:
✔ Reduce excessive repair claims.
✔ Identify unnecessary or unrealistic works.
✔ Ensure fair cost assessments.
If an agreement cannot be reached, legal dispute resolution may be necessary. Common options include:
✔ Mediation – A neutral party helps reach a fair settlement.
✔ Arbitration – A legally binding resolution is made by an expert.
✔ Independent Expert Determination – A specialist assesses the claim and advises on a fair outcome.
Why Work With a RICS-Accredited Surveyor?
Navigating a dilapidations claim can be complex and costly. Having a RICS-qualified, independent surveyor ensures you receive expert guidance tailored to your interests - whether you're a landlord protecting your asset or a tenant negotiating fair terms.
For Landlords:
✔ Ensure your property is properly maintained.
✔ Recover fair and justified costs for repairs.
✔ Avoid prolonged vacancy periods due to disrepair.
For Tenants:
✔ Reduce excessive dilapidation claims and unnecessary costs.
✔ Ensure compliance while minimising financial impact.
✔ Avoid costly legal disputes by negotiating a fair settlement.
Get Expert Dilapidations Advice with Survey Network
At Survey Network, we connect you directly with self-employed, RICS-qualified surveyors who specialise in dilapidations surveys and negotiations. Whether you’re a tenant looking to minimise costs or a landlord seeking to protect your investment, our expert surveyors provide unbiased, professional support to help you achieve the best outcome.
Book today and ensure your dilapidations process is handled fairly, efficiently, and cost-effectively.
