Learn more about ‘Dilapidations’

You need to be aware that full repairing leases give rise to dilapidations clauses. “Dilapidations” specifically concern any disrepair or damage to a rented property. Under this term, the intention is to identify and compensate landlords for the cost of reinstating the property to the original condition at the start of the lease.

As a dilapidations clause may demand you leave the property in the same condition at the end of your lease as it was on the day you first took over the lease, you are advised to consider a schedule of condition photographic survey before actually taking up occupation. One basic common problem affecting a lot of tenants concerns them not fully understanding the terms of the lease. Take professional advice if there is anything you do not understand. It is vital you work closely with your design and build fit-out specialist and commercial agent as dilapidations are a highly complex area and beset with financial traps that can easily affect the unwary. It is important that you take all the advice you need.

Be aware that even if you have made significant improvements to the building, you may still have to remove them to comply with the terms of your lease when you vacate the premises, unless you have specifically agreed otherwise with the landlord.

You should factor dilapidations into your budget for the total cost of occupation of your leased premises.

Office Principles are able to assist you in compiling a list of repairs and items which may need to be removed from your premises prior to your lease expiry and provide an estimate of the costs involved. You are wise to take advice from your property lawyer to ensure that you are correctly advised and allow adequate time to carry out the dilapidations works to your Landlord’s satisfaction.

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