Schedules of Dilapidation
The preparation of a Schedule of Dilapidation is necessary under many landlord and tenant agreements. At ORS, the Building Surveying Team approach is very straightforward. We work closely with you to help you accurately assess the condition of the property and cost the works appropriately.
There are two tiers to our dilapidation service:
- Condition Surveys
- Full cost schedule
- Costs and budget preparation based on the assessment
- Negotiation of solutions
- Project management of construction requirements
Are you a tenant?
The lease, which is the formal contract between both parties, normally include a Maintain and Repair Covenant or clause. Under this clause, you the tenant are obliged to maintain the building or part of the building to a certain standard. This repairing obligation may extend to both the interior and exterior or be limited to internal repair only, depending on the type of lease entered into.
If you wish to break the lease or if you are coming close to the end of the lease, a Dilapidation Assessment should be considered. The assessment aims to provide the tenant with a projected financial estimate of their potential dilapidation liability under their existing lease agreement.
The Dilapidation Assessment will help you to understand where the costs will lie and what you can potentially do before the end of the lease to rectify a dilapidation in a more cost-effective way and also reach an agreement with the landlord before the end of the lease.
Are you a landlord?
Your tenant landlord lease agreement may be coming close to expiry. You may wish to review the condition of your property or consider other property management options. A Schedule of Dilapidation for you as a landlord is a necessary inspection to assess whether the tenant is properly maintaining the building. The inspection highlights any deterioration and repairing obligations of the tenant.
An Interim Schedule of Dilapidations can be served upon the tenant during the lease term and at any time from lease commencement. An interim schedule does not usually include costings as the intention is to allow the tenant to rectify the covenant breaches.
A Terminal or Final Schedule of Dilapidations is served towards the end of the lease term. Terminal schedules intend to address all the alleged breaches of the lease and to specify the required remedies. A terminal schedule is served within the last 18 months (typically within the last six months). It gives the tenant the option to carry out the works within the landlord’s terminal schedule in good time, before lease end and in place of a financial settlement upon lease expiry. Terminal schedules will include costs, but this will depend on when the schedule is served. If the schedule is served towards the end of the lease, then costs will generally be included.
ORS provides expert advice on all aspects of repair and maintenance obligations for both landlords and tenants. Our services can extend to ensuring that all repair works are carried out to a satisfactory standard. Alternatively, we cost the repair items identified in the schedule and negotiate a financial settlement.
The benefit of working with ORS is that you have access to specialist expertise under one roof. As a multidisciplinary firm, we can offer immediate advice in the areas of fire, access and important structural issues in real-time as we do the assessment and prepare the schedule of dilapidation. This means you don’t have to outsource to other third-party advisors. Depending on the scale of your project, we have a dedicated Project Management Team that can manage the process from start to finish.
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