Schedule of Dilapidations

What is a Schedule of Dilapidations?

Dilapidations refer to the current state of repair at a property, and specifically the costs of works that are required to return a property to the state that it was in originally at the start of a Lease.

A Schedule of Dilapidations is a highly detailed report of the current condition of a building, including the physical structure and systems to furnishings and general wear and tear. A typical dilapidations report will include a full summary of all the lease obligations, any current breaches in relation to repair, reinstatement and decoration. It will also include a proposal that provides details on how to remediate the breach and any associated costs.

When do you need a Schedule of Dilapidations?

Dilapidation reports are usually carried out during, and/ or at the end of a tenancy to establish the current condition of the property, and to understand the costs involved in returning the property to its initial condition.

We always advise you to be proactive in organising a Schedule of Dilapidations if you do not intend to renew your lease. This will give you time to either negotiate a settlement without doing the repair works or give you time to do the works prior to the end of the lease.

How does a Schedule of Dilapidations protect both landlord and tenant?

Schedules of Dilapidations offer an unbiased, professional opinion to the condition of a property. This can be invaluable to managing disputes between a tenant and landlord. A dilapidations report can ensure that tenants are accountable for the state of the property, and also make sure landlords are making a fair assessment regarding costs of repairs.

If the premises are left in a poor state of repair or damaged, a tenant could be liable to pay their landlord damages in order to cover costs of returning the property to its original state. Damages can include not only the cost of repairs, but also loss of rent where repairs delay a new tenant moving in.

Dilapidation reports can also help tenants, if they believe that a landlord is charging them unfairly for the dilapidations- for example, by charging them to repair damage to the property that already existed.