Dilapidation disputes are often found at the end of commercial tenancies. Most commercial tenancies require the tenant to keep the premises in good repair. This may include specific obligations on the tenant to decorate, remove fittings and alterations and make good any damage to the property before yielding up the property at the end of the lease. Where a tenant fails to comply with these specific obligations, they could be liable for the costs of these repairs. Further, where matters require court action, a tenant could be liable for the legal costs if the landlord succeeds.
When commencing a dilapidation claim, a landlord is limited to the diminution in value of the property (i.e. the decrease in value of the property if it is less than the cost of the repairs.
Considerations for the landlords include the following:
If a tenant has been served with a Schedule of Dilapidation but have been unable to settle matters with the landlords, tenants may consider the next steps.
Many dilapidation disputes can be resolved through negotiation or alternative dispute resolution and we would be happy to assist you through this process. Nevertheless, if court action is necessary we can assist you with this process to ensure you are robustly protected throughout the action.