Lease Dilapidations

Lease Dilapidations Explained

In simple terms, lease dilapidations are in reference to damages to commercial property. If a lease agreement states that the tenant is responsible for repairs, the tenant must carry out repairs during the tenancy. Failure to do so, means that the tenant is in disrepair and in breach of the lease agreement. Landlords should choose to include a repairs clause in the lease, indicating that the tenant is responsible for repairs. This could mean carrying out repairs to plumbing, electrical systems, walls, ceiling, floor and lavatories.

Tenantable Repairs

If you’re planning to lease commercial property, you need to consider the following:

  • Who carries out repairs during the tenancy
  • Areas covered by the repairs clause
  • Expectations at the end of the tenancy pertaining to repairs

The tenant should leave the property in tenantable conditions. If the tenant is in disrepair, the landlord will have to face the cost of repairs. The landlord will also suffer loss of business during the time the property is being restored. As a landlord your best option is to include a repairs clause in the lease agreement. This will help you to protect your business.

Property Unfit For Leasing

Suppose that after the end of a tenancy, the landlord finds that the property is unfit for reletting. This could mean that the tenant is in disrepair and therefore liable. The landlord can take legal action against the tenant in an attempt at recovering repair costs to be done in the property. Also loss of business because of the time it takes to restore the property back to tenantable conditions so that it can be relet. The landlord can commission specialist valuers to produce a report to the value of the property at it is with damages. Valuers can also produce a report of the property value, if the tenant had complied with the tenancy agreement. But the landlord will need a property lawyer to help with a settlement out of court or bringing the case to court.

The Following Will Be In Question:

  • The Lease terms
  • The tenant’s responsibilities
  • Estimated cost of repair works
  • Estimated loss of business
  • Value of property before repairs
  • Value of the property if the tenant complied with the lease terms

If you would like our property lawyers to include a repairs clause in your lease agreement, please get in touch. Also, if you are affected by property dilapidations, please get in touch. We’ll help you assess your case and advise you on options available. SG

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