John MacMillan BSc (Hons) MRICS CMaPS Head of Building Consultancy talks about dilapidations and how they are managed at the end of a lease.
Whilst our perceptions and opinions may vary, anyone who has either owned or leased commercial property is likely to have experienced dealing with dilapidations.
Landlords/Owners; Frustrated that their Tenants have failed to look after their asset.
Tenants/Occupiers; Landlords use dilapidations as a way of punishing them and extracting a sum of money as they leave a building.
Whichever side of the fence you’re on, if not handled well, the whole dilapidations process can become somewhat of a merrydance!
Typically there are 3 principle ways in which dilapidations can be dealt with at lease end;
Tenant undertakes the works and yields up in repair
Horse trade / cash settlement
Landlord undertakes the work following lease expiry
Or……. A combination of the above!
If you want to know how to manage dilapidations this video takes you through all scenarios.
Tenants
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Landlords
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