Dilapidations is a term used when referring to the condition of a commercial property during the term of the tenancy or when the lease ends.

It means the same as disrepair and is tied in with the repairing and decoration obligations in the lease agreement.

A schedule of Dilapidations is prepared for the landlord by their appointed surveyor.

It identifies items of disrepair and highlights where the tenant has failed to comply with the repairing clauses.

The finished report specifies the work necessary to bring the property back into repair.

Dilapidations and schedules of dilapidations have serious financial implications for commercial (business) tenants.

Tenants should ensure that they fully understand these implications and take steps at the outset to minimise their liabilities before signing a commercial lease.