Leasing Business Premises Explained - D is for Dilapidations

Leasing business premises can be a real minefield for the unwary business owner. In this series of posts I shall go through the various aspects of a commercial lease to explain some of the legal jargon and also provide some lease negotiation tips along the way.

D is for Dilapidations

Dilapidations is yet another legal piece of jargon commonly used in relation to business premises.

The first time a tenant sees the word 'dilapidations' is usually when an intimidating looking document called a Schedule of Dilapidations is delivered to them.  This document is a formal schedule of all of the tenant's failures to comply with the terms of the lease insofar as they relate to the state and condition of the premises and comes with an alarming schedule of costs for putting everything right.  A schedule of dilapidations will deal with:

• failure to keep the property up to the standard of repair required by the lease
• failure to keep the property in the state of decorative order required by the lease
• reinstatement of alterations carried out by the tenant during the term of the lease

The schedule will normally be prepared by a building surveyor who will have inspected the premises prior to preparing the report.

The most common time for a schedule of dilapidations to be produced is either near to the end of the term of the lease or immediately after the lease has ended.

If you receive a schedule of dilapidations from your landlord it is essential you immediately consult a good building surveyor of your own and also a solicitor.  These professionals will work together to challenge the schedule and should be able to negotiate down your liability.

Look out for the next instalment - E is for Entry, rights of 

For further advice on commercial premises contact me on 01926 629005.

Steven Petty, Commercial Property Solicitor