Dilapidations is an area of law that relates to breaches of a tenant’s obligations during a lease which can occur if a property has not been kept in good repair and condition.
A dilapidations bill can be extremely high. The guidance below will help you understand how to limit the risk of a high dilapidations bill, what to do if you are faced with such a bill, and what can be claimed back from IPSA.
Taking pre-emptive action
The easiest way to mitigate a dilapidations bill is to act before you leave the property.
Know your agreement
Read your agreement and find out your responsibilities as the tenant. This can include but is not limited to:
Keeping the interior and exterior of the property in good condition.
Redecorating the property in the last months of the tenancy.
Following any statutory requirements, which can include servicing of gas and electrical items, risk assessments, asbestos register, and more. Certificates and records will need to be provided.
Removing any alterations and installations before you vacate the property, even if the landlord had given permission for them.
Removing items such as signage or alarms.
Removing your possessions and handing back of the keys.
Identify areas to address and rectify them
If your property’s condition has deteriorated, for example if anything is broken, missing or in need of repair, the most cost-effective option is to address these issues and handle any repairs during the term of the tenancy.
If you secure your own contractors to carry out repair works, for instance, these will be more cost effective than the landlord’s contractors and will avoid any additional costs that can feature as part of a dilapidations bill.
We advise you to get at least two quotes from contractors to ensure value for money.
Seek professional advice
If you have any queries, please contact a solicitor (for legal clarifications) or a qualified surveyor (for works specification and costs).
Both of these costs are claimable from the relevant budgets (office costs or accommodation) for IPSA funded properties.
Examine the dilapidations report
The landlord may commission a surveyor to conduct a report into the potential dilapidations that have arisen at the end of the tenancy.
It is standard practice to challenge the report. Although the surveyor may be independent, they may not have all the information and therefore their report should be open to scrutiny.
Consider if you are liable for every item on the report
You should check whether each item is your responsibility as per the lease agreement.
For instance, check if:
you share some of the costs with other tenants or the landlord.
any issues were existing when you took on the lease.
you can provide certification or records to show you have already addressed some issues.
Check if the costs are excessive
If you have confirmed you are liable to pay for dilapidations, check if the costs are excessive and if it is possible to get repairs done at better value for money.
You can ask for professional help from surveyors and solicitors (both claimable for IPSA funded properties) to contest the specific costs for each applicable item.
Agree the final terms and secure a discount
Once you have agreed the items you are liable for, and that the cost is fair, offer a lower amount to bring the matter to a speedy conclusion. Anything from 20-40% may be taken off the total as an opening offer.
The final cost on a dilapidation bill can seem very high, but it is likely that the report includes additional fees such as fees for preparing the report or for procurement costs.