Part 2: A Tenant’s Guide to Dilapidations

by | Aug 8, 2024

Understanding your dilapidations obligations as a tenant is vital to avoid unexpected costs and disputes at the end of your lease. This section provides practical advice on how to manage these responsibilities from the beginning of your tenancy to its conclusion.
What Are Dilapidations?

Dilapidations refer to the repairs and maintenance that you, as a tenant, are required to carry out to comply with the terms of your lease. These obligations often include structural repairs, redecoration, and reinstatement of any alterations made during the tenancy.

tips for tenant
Planning Ahead: Start Early

It’s important to consider your dilapidations obligations right from the start of the lease. Engaging a building surveyor early can help you understand the condition of the premises and anticipate any work that may be required during or at the end of the lease.

  • Pre-Lease Survey: A survey before signing the lease can help you negotiate better terms, potentially reducing your rent or other costs if significant repairs are needed.
  • Schedule of Condition: If the property is already in poor repair, document this with a schedule of condition attached to the lease. This can protect you by limiting your obligation to returning the property in the same condition as when you took it on.
    • Maintaining the Property During the Lease

    Regular maintenance is key to meeting your obligations and avoiding large, unexpected bills at the end of the lease. Consider implementing a maintenance schedule to keep the property in good condition.

    Handling Poor Condition at Lease Start

    If you take on a property in poor condition, be aware that you might still be responsible for returning it in a better condition than you received it, depending on the lease terms. A schedule of condition can protect you, but without it, you might face significant repair costs.

    Planning for Lease End

    As your lease nears its end, it’s essential to plan for dilapidations:

  • Inspection and Assessment: Conduct an inspection to assess the property’s condition and identify any areas that need attention. Engaging a surveyor can help ensure that you meet your obligations without doing more than necessary.
  • Negotiate with the Landlord: It might be possible to negotiate a financial settlement in lieu of carrying out repairs. This can often be quicker and less disruptive, but ensure the amount is fair.
    • Dealing with the Schedule of Dilapidations

    If the landlord serves you with a schedule of dilapidations, respond promptly:

    • Evaluate the Schedule: Review the schedule carefully, and if necessary, engage your surveyor to assess the validity of the claims.
    • Negotiate: Try to negotiate the scope of works and costs with the landlord. Often, a fair compromise can be reached without the need for litigation.
    Minimizing Costs

    There are several strategies to minimize your dilapidations costs:

    • Regular Maintenance: Ongoing maintenance can prevent small issues from becoming costly repairs at the lease’s end.
    • Strategic Negotiations: Negotiate lease terms that limit your dilapidations liability, such as caps on repair costs or exclusions for certain types of wear and tear.
    • Early Engagement: Engage with the landlord early if you anticipate any issues with meeting your obligations. This can lead to a more amicable and cost-effective resolution.
    Ending the Lease Smoothly

    As your lease ends, being proactive is key to a smooth transition:

    • Final Inspection: Conduct a final inspection well before the lease ends, allowing time to address any issues.
    • Settlement: If possible, negotiate a cash settlement to cover the cost of any necessary repairs rather than undertaking the work yourself.

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