Dilapidations explained: why landlords and tenants often misunderstand each other

When a commercial lease comes to an end, dilapidations are one of the most common causes of dispute between landlords and tenants.

Landlords want their property returned in the condition required by the lease, while tenants are often blindsided by the scale and cost of a dilapidations claim. In many cases, disagreements arise simply because both parties have different interpretations of their responsibilities.
Understanding the dilapidations process and seeking professional advice early can help avoid costly mistakes and awkward conversations.

What are dilapidations?

In most commercial lease agreements, you’ll find obligations which require tenants to maintain, repair and, in some cases, reinstate alterations made to a property during the lease term. A breach of this agreement is known as a dilapidation.

If a landlord believes a tenant has failed to meet the obligations at the end of a lease, they can instruct a surveyor to inspect the premises and prepare a Schedule of Dilapidations. This document identifies any breaches of the lease and sets out the landlord’s claim for the cost of putting those issues right.

In response, a tenant can either accept the claim or appoint their own surveyor to review the claims.

Why do disputes happen?

One of the biggest misconceptions surrounding dilapidations is that the process is simply about identifying repairs. In reality, everything depends on the wording of the lease.

A landlord may believe a tenant is responsible for replacing or repairing an item, while the tenant may argue that the lease does not require it. The condition of the property when the lease began, any alterations carried out during the tenancy and supporting documents such as a Schedule of Condition can all affect the outcome.

Because commercial leases are often lengthy and complex, it is easy for both parties to misunderstand or simply forget their obligations.

Why tenants should seek professional advice

Many commercial tenants only begin looking into dilapidations when a claim lands on their desk.

By this point, they may be facing a significant financial demand with little understanding of whether the claim is justified or even whether they’re responsible for it.

A specialist dilapidations surveyor can review the lease, inspect the property and assess whether the claim is reasonable. In many cases, items within a schedule can be challenged, either because the costs are excessive or because the lease does not support the landlord’s interpretation.
Naturally, professional advice can often result in substantial savings. [JB1.1]

Why landlords benefit from early action

Dilapidations are not just about recovering repair costs. For landlords, they are also about protecting the value of an asset and minimising delays between tenancies.

Starting the process before the lease ends allows potential issues to be identified while the tenant is still in occupation. This can provide an opportunity for repairs to be completed before the property is handed back, helping landlords avoid unnecessary delays and loss of income.

How Easton Bevins can help

At Easton Bevins, we specialise in dilapidations advice for commercial landlords and tenants.

Our experienced building surveyors provide practical, commercially focused advice throughout the dilapidations process, including:

• Preparing and serving dilapidations claims on behalf of landlords
• Reviewing and responding to claims for tenants
• Negotiating settlements
• Advising on interim and terminal dilapidations
• Supporting clients through disputes and legal proceedings where required

We have acted on dilapidations matters involving retail units, warehouses, industrial estates, office buildings, restaurants, medical centres and large commercial portfolios.

Whether you are a landlord seeking to protect your investment or a tenant facing an unexpected claim, our specialist surveyors can help you achieve the best possible outcome. Our consultancy services and expertise cover the full dilapidations lifecycle. To learn more, contact us on 0117 942 8776 or email info@eastonbevins.co.uk.