My Landlord has Served a Schedule of Dilapidations. What should I do?

If your landlord has served you a costly schedule of dilapidations, it can be a worrying time. However, it is important not to panic; often the dilapidations can be negotiated. Crucially, dilapidations must not be ignored – there are deadlines for responding that are set out in law in the Dilapidations Protocol.

Getting help from a chartered building surveyor

Unless the dilapidations claim is very small, it is usually worth instructing a chartered building surveyor to support you with the dilapidations negotiations.

Next steps.

1. Review the lease.
   • The surveyor will carefully review your lease, checking your repair and maintenance obligations.
2. Survey the property.
   • They will survey the property so that they can fully understand its condition and the costs of required repairs. This will allow them to prepare a comprehensive response to the landlord’s claims (this is called a ‘Scott Schedule‘) .
3. Check the Schedule of Condition.
   • If you have a schedule of condition attached to your lease, the surveyor will review that against the schedule of dilapidations to see if  it can be used to invalidate any of the breaches listed by the landlord.
4. Prepare a defence.
   • The surveyor will go through the landlord’s claim line-by-line. They will be looking for:
     • Anything that falls outside the obligations specified in the lease.
     • Any items where the landlord has overestimated costs.
     • Any items that a schedule of condition shows were already in disprepair when you took on the lease.
     • Any claims that are made irrelevant becuase of the landlords future plans; for example, if they intent to make alterations that would render repairs irrelevant.
5. Negotiation.
   • The surveyor will negotiate on your behalf with the landlord and their surveyor to reach an agreed settlement. In most cases a mutual agreement is reached and no further legal proceedings are required.
6. Consider a Section 18 Diminution Valuation.
   • Your surveyor will also advise if the landlord’s claim could be affected by the “diminution in value” clauses in section 18 of the Landlord and Tenant Act. Section 18 can protect tenants by capping the landlord’s claim at the reduction in the property’s value caused by the disrepair, rather than the full cost of the works.

We often negotiate significant reductions in dilapidations costs for tenants, such as in this case where we reached a settlement 75% lower than the initial claim.

Allcott Commercial Chartered Surveyors: Tenant Dilapidations Support

Our commercial building surveyors have decades of experience in dilapidations negotiations, covering a broad range of property types, from offices and retail to industrial and hospitality. Our team can talk you through the process and the steps involved, from initial consultation and property inspection, through to preparation of a dilapidations defence and subsequent negotiation. As experts in the Dilapidations Protocol and the legal obligations involved for all sides, our surveyors are well placed to guide you through the process and support you with reaching an appropriate outcome.

Want to know more?

Contact us for advice, or download our Guide to Dilapidations for Tenants.