What is a dilapidation report?
A commercial dilapidation report or survey establishes the current condition of an office space, the common property and the building itself. It usually contains photographic and written proof of any existing faults and outstanding repairs. Reports should be written in plain English and easily understood.
It’s in the best interest of all stakeholders, building owners, building managers, tenants and fit out companies to have an up to date dilapidation report they all agree on.
To make sure you know what you’re responsible for it’s best to get a dilapidation report prior to signing a lease. If the property is in disrepair prior to signing the lease you can request the landlord fix the problems. An alternative method is to negotiate an incentive for you repairing existing problems to the owners building.
Keep in mind after you sign a lease you have very little negotiating power left.
Below are some examples of dilapidations or outstanding repairs we commonly see in reports:
- general scratches to walls, doors, floor and ceilings
- broken window blinds
- damages to lifts
- stained, marked or worn carpets
- damage to doors
- scuffed warehouse floors
- missing, stained or scratched ceiling tiles
- lighting not working
- leaking taps
- faulty cisterns on toilets
- cracked mirrors or tiles
- damage to stair nosing
- missing skirting.
A dilapidation report is sometimes seen as a tool to cover the liabilities of the fit out contractor. Tenants generally fail to appreciate how important a dilapidation report can be to them. A dispute may arise to the condition of the office space or part of the building at the end of the lease term. An accurate dilapidation report can help landlords and tenants reach a fair negotiated settlement.
Damages to the building can occur by normal wear and tear over the term of the lease. This tends to be the norm. Regular maintenance of the property will help minimise your end of lease liabilities.
Compiling a dilapidation inspection report is best left to the experts. For more advice please contact us to arrange a free consultation.