When a commercial tenant hands back the keys, it’s often the case that things don’t always look quite as they did on day one. Scuffed walls, worn carpets, broken fittings, or even more significant disrepair can leave landlords out of pocket. This is where dilapidations come into play.
For landlords, understanding what you can reasonably claim for, how to manage the process, and how to avoid disputes is key to protecting your asset and your income. In this short blog, we’ll look at dilapidations, your rights as landlord, and how you can protect your position in relation to them.
What are dilapidations?
“Dilapidations” often refers to breaches of a tenant’s repairing, decorating, and/or reinstatement obligations under a commercial lease. In other words, it’s about the physical condition of the property and what the tenant is contractually obliged to put right before the lease ends.
Most commercial leases include clauses requiring tenants to:
- Put and keep the property in a good state of repair and decoration
- Reinstate any alterations made during their occupation
- Comply with statutory requirements, such as fire safety and asbestos management.
When these obligations aren’t met, as landlord, you can pursue a dilapidations claim to recover the cost of putting things right.
Why dilapidations matter to landlords
Dilapidations can have a material effect on the lease’s profitability and your ability to pursue a new lease with a new tenant. It isn’t just about aesthetics.
A poorly maintained or damaged property can:
- Delay re-letting or sale of the premises
- Reduce market value or rental income potential
- Make the property unfit or even unlawful to be let
- Leave you covering repair costs that should legally fall to the tenant.
Managing dilapidations effectively can make a significant difference to the property’s long-term financial performance.
What landlords can (and can’t) claim
The starting point is always the lease itself. It sets out what the tenant must do and what they can’t be held responsible for. Generally, as landlord, you can claim for the reasonable cost of repairs or reinstatement works required to bring the property back to the condition specified in the lease.
But there are limits. The Landlord and Tenant Act 1927 (Section 18(1)) prevents you from recovering more than the actual loss in value caused by the disrepair. In simple terms, you can’t claim the full cost of repairs if doing the work wouldn’t increase the property’s market value.
You also can’t claim for improvements, only for works needed to meet the standard of repair set out in the lease. And if you’re planning to redevelop or make major alterations, that may affect whether a claim is valid.
As you can see, if the claim isn’t straightforward, we can get into murky waters.
Managing the dilapidations process
The process of pursuing a dilapidations claim can feel technical, but it’s really about taking a structured, evidence-based approach. By following the right steps, you can strengthen your position, avoid unnecessary disputes, and move more quickly toward a fair settlement.
- Instructing a building surveyor
A professional surveyor can inspect the property and prepare a Schedule of Dilapidations — basically, a detailed list of alleged breaches and the estimated cost of remedial works. - Serving the schedule on the tenant
This is usually done near or after the end of the lease. The tenant may respond with a Scott Schedule, agreeing or disputing your claims item by item. - Negotiating settlement
Many claims are resolved through negotiation, with the tenant agreeing to carry out certain works or make a financial settlement to cover the costs of making good the items of disrepair. - Taking legal action (if needed)
If an agreement can’t be reached, as the landlord, you may be able to pursue a claim through the courts. However, litigation should always be a last resort. It’s costly, time-consuming, and cannot guarantee an outcome in favour of either party.
How landlords can protect their position
A few practical steps can help you stay in control:
- Take advice on any new lease. Make sure a solicitor reviews the terms of any new letting before you become contractually bound by them.
- Keep records: Maintain photos, inspection reports, and correspondence throughout the tenancy.
- Carry out interim inspections: Early identification of issues can prevent them escalating.
- Understand your existing lease: Every clause matters. Get legal advice before making or responding to a claim.
- Engage experts early: A surveyor and solicitor working together can help ensure your claim is fair, proportionate, and well-evidenced.
- Plan ahead: If you know you’ll redevelop or refit, that could change how you approach dilapidations altogether.
How Gorvins can help
At Gorvins Solicitors, our commercial property and dispute resolution teams work closely with landlords to manage dilapidations from start to finish. Whether you’re preparing a claim, negotiating a settlement, or facing a challenge from a tenant, we’ll guide you through your legal options and help you reach a practical, cost-effective outcome.
We make sure your position is protected, your claim is compliant with the law, and your asset is ready for its next chapter.
To get started, call us on 0161 930 5151, email us at enquiries@gorvins.com, or fill in the online form.