The term "dilapidations" refers to a state of disrepair in a property where there is a legal liability for the condition of disrepair. Essentially there are three components necessary for a question of dilapidations to arise : a lease, a piece of property or part of an estate (e.g. offices, a warehouse, or a unit in a shopping centre) and a state of disrepair for which one party has accepted legal liability and for which the other party has suffered or will suffer financial loss.
Today, landlord’s seek to maximise the return on their investment, therefore tenants are well advised to keep their leased premises in good condition. Tenant's should be aware of their repairing obligations under the terms of the lease and prepare financially for this inevitable outcome.
It is normal for a premises to be leased under a repairing and insuring lease and tenants are often unaware of the significance of the these clauses. In commercial leases it is normal to find clauses obliging the tenant to repair the property, redecorate it and yield it up in good repair. In general terms the requirement is to keep the building "in good tenantable condition".
During the term of a lease, a landlord may serve a "Schedule of Dilapidations" on a tenant. This is essentially a notice to repair. The Tenant must determine what their obligations are under the terms of the lease and repair accordingly.
At the end of the lease a landlord may serve a "Terminal Schedule of Dilapidations". The obligation on the tenant is to repair rather than replace and it is often contentious as to what constitutes an satisfactory and acceptable solution. A normal outcome would be that a monetary contribution towards the cost of repair/replacement is agreed upon.
Where the term has ended the measure of damages is likely to be the lesser of (a) cost of repairs or (b) the difference in the value of the premises in its actual condition and its condition if the tenant had complied with his repairing covenant, plus reasonable consequential damages such as loss due to delay in selling or re-letting the property caused by making good the tenant's default. A surveyor or architect will be responsible for preparing an estimate of the cost of the remedial work in order to assist with computation of any claim for damages.
At O'Connor Doyle, once we have been properly appointed, we will require all relevant documentation relating to the tenancy/lease agreement. Ideally the documentation will include: the lease; a commencement schedule of condition; any licences or consents relating to the tenancy. It is vital to determine the extent of the demise and the repairing obligation. In this regard we would determine whether the obligation is to fully repair one or partially (some leases limit the obligation to the interior of the building).
Having been served with a Schedule of Dilapidations, the tenant may either carry out the repairs themselves or agree a monetary settlement to cover the cost of the landlord carrying out the repairs. This amount is usually agreed between the landlords and tenant’s surveyor.
Today, landlord’s seek to maximise the return on their investment, therefore tenants are well advised to keep their leased premises in good condition. Tenant's should be aware of their repairing obligations under the terms of the lease and prepare financially for this inevitable outcome.
It is normal for a premises to be leased under a repairing and insuring lease and tenants are often unaware of the significance of the these clauses. In commercial leases it is normal to find clauses obliging the tenant to repair the property, redecorate it and yield it up in good repair. In general terms the requirement is to keep the building "in good tenantable condition".
During the term of a lease, a landlord may serve a "Schedule of Dilapidations" on a tenant. This is essentially a notice to repair. The Tenant must determine what their obligations are under the terms of the lease and repair accordingly.
At the end of the lease a landlord may serve a "Terminal Schedule of Dilapidations". The obligation on the tenant is to repair rather than replace and it is often contentious as to what constitutes an satisfactory and acceptable solution. A normal outcome would be that a monetary contribution towards the cost of repair/replacement is agreed upon.
Where the term has ended the measure of damages is likely to be the lesser of (a) cost of repairs or (b) the difference in the value of the premises in its actual condition and its condition if the tenant had complied with his repairing covenant, plus reasonable consequential damages such as loss due to delay in selling or re-letting the property caused by making good the tenant's default. A surveyor or architect will be responsible for preparing an estimate of the cost of the remedial work in order to assist with computation of any claim for damages.
At O'Connor Doyle, once we have been properly appointed, we will require all relevant documentation relating to the tenancy/lease agreement. Ideally the documentation will include: the lease; a commencement schedule of condition; any licences or consents relating to the tenancy. It is vital to determine the extent of the demise and the repairing obligation. In this regard we would determine whether the obligation is to fully repair one or partially (some leases limit the obligation to the interior of the building).
Having been served with a Schedule of Dilapidations, the tenant may either carry out the repairs themselves or agree a monetary settlement to cover the cost of the landlord carrying out the repairs. This amount is usually agreed between the landlords and tenant’s surveyor.
