Schedules of dilapidation are intended to ensure that commercial properties are left at the end of a lease in the condition they should be had the tenant fulfilled all his obligations under the lease. The landlord will serve a schedule of dilapidation which will itemise all areas of disrepair where it is claimed that the tenant hasn’t carried out his obligations.
Interim schedules can be issued at any time throughout the lease. Usually, these do not include individual costings as the aim is to encourage the tenant to complete the required works.
Terminal schedules are usually issued within the last 18 months of the lease. Typically, items are costed,though not always. Final scehedules of dilapidation are served at the end of the lease. Usually, these are issued with a view to recovering costs of work that needs to be carried out and items are listed and costed for that purpose.
The extent of works required to the property (eg either to ‘keep in repair’ or ‘put into good repair’) will greatly affect the work that is needed. This will be defined by the terms of the lease.
A tool used to regulate the extent of claims possible at the end of the lease is for a Schedule of Condition to be draw up at the outset. This will describe the condition of the property at the outset. It may be agreed that the tenant will be required to maintain the property only to the condition recorded in the Schedule of Condition, ie not to improve it. The schedule will be agreed by Landlord and Tenant and will relate to the terms of the lease specifically.
There are surveyors who specialize in these areas and it is vital that you engage only a surveyor who is experienced in preparing and negotiating schedules.