Dilapidations can create costly and unexpected exposure for both landlords and tenants, making early clarity on repairing obligations absolutely essential.

Here is a practical checklist to help guide you. 

Tenant's guide: Top tips for limiting dilapidations liability:

  • Schedule of Condition

    Document the initial condition of the property at the outset of the lease. A detailed photographic Schedule of Condition helps to ring‑fence your repairing obligations to the state shown at the date of entry / start of the lease and prevents you from being required to return the property in better condition than you received it. Use this opportunity to identify significant pre‑existing issues and negotiate to carve out, for example, structural or extraordinary repairs such as roof replacement. You should also build a dilapidations budget fund into your financial planning from day one - this is critical safety net.
  • Understand your lease

    Make sure you have a clear understanding of what the lease requires you to repair. A common misunderstanding is around the obligation “to keep the property in repair”. Legally, this includes an obligation to put the property into repair, meaning you may have to remedy disrepair that existed before the lease began - not just prevent further deterioration.
  • Commission an independent condition survey

    Consider appointing a surveyor experienced in dilapidations to carry out an independent condition survey before entering the lease. This will help identify defects early and ensure you obtain any necessary exclusions. During the term, being proactive and implementing a regular maintenance programme is more cost‑effective than facing a large dilapidations bill at the end of the lease. Routine upkeep also gives you a strong evidential position if a dispute arises.
  • Plan your exit-strategy early

    Begin reviewing your repairing obligations at least 12 months before the expiry of the lease (and longer for long leases or more complex properties). Early review allows for sufficient time to understand your potential liability, plan for works, and prepare for a negotiated settlement with the landlord. Leaving this too late almost always increases cost and reduces your options.

How we can help

Our Commercial Property and Litigation experts can provide information and advice to ensure any potential loss is avoided and lease obligations are met. 

For more information, please contact the Lindsays Commercial Property team.