A little wear and tear is to be expected at the end of a commercial lease. A few scuffs on the wall, a scratch or two – but if the property has been left with extensive damage then someone is on the hook to arrange the repairs. This is where a commercial dilapidation survey comes in.

Disputes around dilapidations can quickly escalate, particularly when large rental deposits are involved, so it is important that both parties are held to account. This essential survey clarifies the end-of-lease responsibilities for both the tenant and the landlord and makes sure that the dispute is resolved fairly, so who is responsible for arranging one, and when?

Do I Need A Commercial Dilapidation Survey?

There are several surveys that should be carried out before the end of a commercial lease, and a dilapidation survey belongs at the top of that list.

This important survey assesses any damage or modifications made to a property during the lease term, including any physical or structural damage, general wear and tear, and any extension or refit projects that were not authorised by the landlord.

In the simplest terms, it provides both the tenant and the landlord with a clear, impartial report on the condition of the property, which can then be used as the basis for a schedule of dilapidations (a list of repairs required to restore the property to the condition it was in at the start of the tenancy).

The landlord is often the one responsible for arranging the survey, as it is their property and they have the right to request that the tenant addresses any dilapidations before the lease expires. However, tenants are also able to arrange for their own survey and most chartered surveyors also offer dilapidation services to both landlords and tenants.

So, let’s find out how each party will benefit from having the property professionally surveyed before the end of the lease.

As A Landlord

Any landlord knows the stress and contention that can come about at the end of a lease when there are repairs to be made and deposits to be returned. The tenant is responsible for rectifying the dilapidations that they are liable for, but without a detailed report on the buildings’ condition, it can be hard to hold them accountable for the state of the property.

Landlords can quickly become caught up in disputes with former tenants and face delays in moving new tenants in, and this is why most chartered surveyors recommend that landlords schedule the inspection to happen before the end of the lease term. This impartial survey provides clarity for both parties and makes sure they agree on the required works needed to restore the property to its original condition, as well as giving the tenant plenty of time to complete the works before they can cause delays.

As A Tenant

Dilapidation surveys give landlords a comprehensive overview of their property’s condition and provide evidence to hold tenants accountable in the event of any disputes, but they can also benefit tenants just as much as they benefit landlords.

Tenants are encouraged to schedule their own survey or ask their landlord to arrange one on their behalf towards the end of their tenancy. This allows tenants to see firsthand what damages the survey lists and helps them understand their landlords’ expectations for the repairs from the get-go, without any back-and-forth disputes later on.

This also details how much they will have to pay and means there are no unexpected costs once repairs have started, but just as the landlord can provide evidence of damages, tenants can also claim that the damages were already present at the beginning of the lease. If this is the case, then the tenant is not liable, and there are also certain damages that tenants are not required to pay for, including damaged flooring or fixtures in the event of a flood.

Birmingham-Based Chartered Surveyors

If your tenants’ commercial lease is soon coming to an end, now is the time to have your property professionally surveyed.

To give them enough time to make repairs, it is recommended that the dilapidation survey is completed up to 6 months before the lease expiry, so contact JTM Building Consultancy today to discuss your commercial dilapidations requirements in the Birmingham area.