Tenant Dilapidations: Practical Strategies to Reduce Risk and Cost

Dilapidation claims are a reality of most commercial leases, but they don’t have to turn into disputes or expensive surprises. With the right approach, you can minimise risk and control costs. Here are some practical steps:

‍Think ahead, even before signing
Your lease sets the foundation for any future dilapidation claim, so consider these obligations upfront, not just at lease expiry. ‍‍

Get a comprehensive survey
This is particularly important for long leases or where there’s a service charge liability. A survey gives you clarity on the property’s condition and potential costs.

Know what you’re agreeing to
A dilapidations surveyor can help you understand your potential liability before it becomes a problem.

Plan your fit-out carefully
The design and alterations you make today could increase your reinstatement costs later.

Consider doing the works yourself
Undertaking dilapidation works before handing back often proves more cost-effective than settling a claim.

Using a break clause? Start early
Appoint both a surveyor and a solicitor well before the notice period to avoid last-minute complications.

Avoid DIY negotiations
Trying to handle the claim yourself usually ends up costing more. Professional advice essential.

If works can’t be completed, document everything
Photos and condition reports can make a big difference if you’re unable to meet all obligations.

Keep your paperwork organised
Leases, alteration licences and relevant records should be easily accessible when you need them.

By planning ahead and using professional advice, tenants can approach dilapidations with confidence and avoid unnecessary costs.

Need help reducing your dilapidations risk? Speak to our specialists to minimise costs and avoid disputes.

Author

Sara Lewis
Sara.lewis@squarebrook.com
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