Delapidations

What are dilapidations?

Dilapidations refers to the condition of a residential or commercial premises during course of the rental agreement which can also extend to the state of disrepair in some cases. During the course of a tenancy, landlords may agree a schedule of dilapidations which could comprise of maintenance, repair/or and decoration expectations with the occupants in order for the landlord to protect and maintain its assets to a pre-occupancy state. Prior to a tenant undertaking a lease agreement, it is essential that the manner/method of repairs which the tenant is required to undertake is transparent which may also extend to internal and external repairs, including building structure. Failure to adhere to the dilapidations agreement, may result in a indemnity cost which is levied by the landlord detailing cost schedule to rectify such damage. You may be liable for any damages that have resulted in your tenancy to the landlord. In summary, whether you are an owner, landlord, agent, tenant or other interested party, dilapidations are a significant aspect of any agreement and should always be considered from a protection and financial perspective.

When do I need to complete them?

In order to avoid any unnecessary confrontation, it is in the interests of all parties that you agree all conditions prior to the undertaking of a lease agreement.  The schedule will determine the pre and post occupancy position of the property and will specifically identify any dilapidations which are required to be undertaken before the contract is fulfilled. In the event that the contract is not honoured, this provides the landlord with protection to avoid costs which otherwise they are not responsible for and in turn, what you need to complete when you return the building. Dilapidations have to be completed before the building is returned to the landlord. If they are not completed and the result is remedial works, then the landlord is required to complete them which could result in serious financial implications being incurred. If you are provided with a schedules of condition or schedule of dilapidation then you can pre-empt what is required in terms of the lease and you can ensure that by implementing pre-planned or planned preventative maintenance these costs are kept to a minimum as you maintain the building works throughout the lease. This will help to keep the costs of the dilapidations down at the end of the term and prevent costs escalating as problems develop over the term of the lease.

Managing Dilapidations

We revert back to our aforementioned services to ensure continuity with PPPM (planned, preventative and pro-active maintenance). By assessing and impacting maintenance before this happens, this will minimise the cost of dilapidations and maximise the effectiveness of the property and as such, eradicate the dilapidation cost in part, or entirely.

Responsibility?

So who is responsible? Is it the tenant or the landlord or otherwise? This entirely depends on the terms of contract as some contractual obligations insist that all repairs are required to be carried out by the tenant, to an intermediary cost-share and finally total responsibility on the landlord. You should refer to the terms and conditions of the lease.

When should I satisfy dilapidations?

The simple answer is “When you sign the lease”. 

Damage, disrepair and maintenance issues will generally occur from the moment of occupancy whether it is due to incident or general wear and tear.  Failure to address these issues in an ongoing manner which may lead to a dispute at the end of the terms of the lease. It is the interests of all parties to address this in avoidance of a disagreement. Certain aspects may include, repairing ceilings or floors, repainting or redecoration, so just turn to Ultra Services and we will deal with it.

Why Ultra Services

Essentially, we have skill, experience, customer service and we care. This empowers us to be efficient, effective whilst understanding the needs of the landlord and tenant combined with the empathic approach to avoid delay. We can, we will keep your building/occupancy managed and cost-effectively.