Dilapidations definition is an allegation of a breach of a tenant’s legal obligations under the repair, decoration and reinstatement covenants stipulated within a property lease.”
Following the identification of a possible breach of lease, a landlord will usually submit a claim for damages (dilapidations claim), which is enforceable in a court of law.
Simplified – a dilapidations claim arises when a tenant is due to vacate space they have previously occupied – either at a lease break point or at lease end, and the resulting condition of the space is not deemed satisfactory from the perspective of the landlord. The unsatisfactory condition of the space could affect whether or not the landlord is able to relet the space, which could result in a loss of revenue. Subsequently, the landlord will submit a dilapidations claim for damages, in an attempt to reach a financial settlement or stipulate that repair works must be undertaken and paid for by the tenant vacating. A tenant is then faced with the decision as to whether or not to undertake the repair works, or attempt to negotiate a financial settlement with the landlord, to cover the cost of the necessary repairs.
The dilapidations process can therefore be complex and costly for a tenant if it isn’t managed carefully. Specialist dilapidations and legal advice must be sought at the earliest opportunity.
Alex is head of Cushman & Wakefield Building Consultancy team and is responsible for all commercial building surveying services. He specialises in dilapidations and landlord and tenant related matters, including exit strategy. Alex is an authority on dilapidations and has written a number of articles and given presentations to both Clients and Peers. He is viewed by the industry to be a leading Dilapidations practitioner.
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