What is a Dilapidation Survey?

What is Dilapidation?

The term “dilapidation” refers to any deterioration, decay, or modifications to a structure’s condition. Dilapidation can occur as a result of neglect in upkeep, purposeful alterations to the building’s appearance, or simply because it’s old and needs repair.

Dilapidation surveys are an essential process for any leased commercial property, whether it’s an office space, a warehouse, a retail store, a leisure facility, or an industrial building. PPVS have worked alongside building surveyors and experts within the industry throughout the dilapidation procedures and scope of works involved. We can assist you with everything from surveys to building dilapidation works.

What is a Dilapidation Survey?

Leaseholders have a duty to maintain a property in good condition, whether they’re leasing from an agency or a private landlord. Some minor wear and tear is expected, especially if the building has been occupied for a long time, but if you require assistance assessing the damage, there are expert third-party services that can assist landlords in determining the condition of a property at the end of a lease.

The best approach to document a property’s deterioration after a lease is to conduct a dilapidation survey, which is an efficient approach to document the status of a building after it has been leased and describe the actions needed to return it to its original condition.

Dilapidation surveys are also used to manage dilapidation disputes and claims, which can become extremely complicated. If work hasn’t been completed before the end of a lease, a financial damages claim may be required. The usual approach for dealing with dilapidation claims is to issue them within 56 days (8 weeks) after the conclusion of the lease term.

If you want to read up on the main pieces of legislation detailing parts of the dilapidation process, you should take a look at The Law of Property Act 1925 and The Landlord and Tenant Act 1954.

Get in touch with our specialists today if you’d like any more information about dilapidation surveys or why they’re beneficial.

Dilapidations Schedule

For the dilapidation claim process to begin – however not required – a third-party building surveyor should perform a dilapidation survey to ensure that the investigator is not biased in favour of landlords or leaseholders. This implies the building surveyor will not try to mislead findings since there would be no financial incentive for doing so.

Once the building surveyor has completed the schedule of dilapidations, the surveyor will document any disputed violations. This may be as little as a minor renovation such as painting the walls a different colour, or it might be more substantial, such as removing a wall subject to the building condition report carried out by the surveyor.

A breach could be caused by damage against the original lease the tenant has occupied, but it might also be something less severe, such as extra partition walls or other modifications that may arguably improve the appearance of the room. These changes can still result in a dilapidation schedule if the place was declared as an open space and has not been returned to this condition. Some landlords, however, may choose to retain tenant-made changes; in this scenario, it’s critical to make clear before any repair work begins.

Another document is frequently delivered to the tenant at the same time as the schedule of dilapidations. This paper, known as the quantified demands, specifies any economic losses incurred by the landlord as a result of the repairs outlined in the schedule of dilapidations. This might cover costs for labour and materials, as well as any legal expenses incurred throughout the process.

What Happens After a Dilapidations Survey?

After a schedule of dilapidations and the quantified demands have been delivered to the tenant, they have another 8 weeks to respond. If they disagree with any of the allegations made in the schedule of dilapidations, they must submit a response known as a “Scott Schedule”.

The client may use a “Scott Schedule” to go down the dilapidations and quantified demands line by line, disputing any claims made by the landlord. The tenant can propose more accurate costings, and is allowed a short reason as to why they think differently.

Who Can Carry Out a Dilapidation Survey?

Dilapidation surveys must be thorough and accurately reflect the condition of the property to avoid future disputes. As such, these surveys are typically conducted by professionals who have specific qualifications and expertise in the field of property assessment. Our team at PPVS offer works following a RICS accredited surveyor carrying out comprehensive dilapidation surveys to establish any external or internal damage to a building.

Professionals conducting dilapidation surveys are usually highly qualified in the field of building surveying or structural engineering via RICS accredited members.

Types of Professionals Typically Involved

The most common practitioners of dilapidation surveys are chartered surveyors and structural engineers. These experts are trained to identify any defects or issues with the property that might not be apparent to untrained eyes. Their involvement ensures that the survey is comprehensive and legally sound, providing a reliable record of the property’s state before any significant activity, such as construction or renovation, begins.

Purposes of Conducting a Dilapidation Survey

Conducting a dilapidation survey has several purposes and is typically carried out during or towards the end of a tenancy or at the start of a construction project. These surveys can help with a few different things, such as:

Protecting Property Interests

Dilapidation surveys are used to safeguard the interests of all parties in a property transaction or development. For instance, before starting construction work nearby, a survey can document the pre-existing condition of adjacent properties to ensure that any claims of damage caused by the construction can be accurately assessed.

Similarly, in lease agreements, these surveys are important for documenting the state of the property at both the commencement and conclusion of a lease, protecting both landlord and tenant by providing an unbiased record of the condition at these times.

Legal and Contractual Obligations

Beyond their practical utility, dilapidation surveys play a significant role in fulfilling legal and contractual obligations. They help ensure that all parties adhere to the terms of lease agreements or development contracts, which might stipulate the maintenance of the property’s condition.

Dilapidation surveys are also valuable in legal disputes, providing evidence that can resolve conflicts over property damage or changes, potentially saving significant time and resources in litigation.

Benefits of Dilapidation Surveys

Dilapidation surveys can unlock several benefits for individuals who are responsible for the building and its maintenance. Below are a few reasons why a dilapidation survey is something to consider:

Prevention of Disputes

One of the primary benefits of conducting a dilapidation survey is the prevention of disputes between involved parties. By creating a clear and detailed record of the property’s condition, these surveys help avoid misunderstandings and disagreements over issues such as damages or general building maintenance responsibilities. This clarity can foster better relationships between landlords and tenants, or property owners and contractors, reducing the likelihood of contentious disputes.

Planning and Budgeting for Repairs

Dilapidation surveys are also invaluable for planning and budgeting purposes. They provide property owners with a clear understanding of the necessary repairs and reactive maintenance, helping them budget accordingly. This foresight is important for long-term property management and ensures that the property can be maintained in optimal condition, preserving its value and functionality.

When Should They Be Carried Out?

Dilapidation surveys are most effective when conducted at strategically important times. For construction projects, it is advisable to carry out these surveys before the commencement of any significant work to establish a clear baseline condition of all affected properties. For leases, surveys should be done at the beginning and end of the lease term to provide a comparison that can facilitate smooth transitions and finalisations of lease agreements.

In cases of long leases or extensive construction projects, periodic surveys may be warranted to monitor the condition of the property over time. These regular checks can help manage any arising issues promptly, maintaining the property’s condition and value.

If you’re in need of any dilapidation works or surveys for your commercial or office buildings, please get in touch with our experts today and we can facilitate the whole process.

Why Dilapidation Surveys Are Important

Dilapidation surveys are an important part of the dilapidation process. For property owners, tenants, and managers, these surveys offer several significant benefits. These surveys provide a detailed report documenting the condition of a property at a specific time. This is particularly useful before starting construction or demolition work, as it helps protect against unfounded claims for damages caused by others.

Also, these surveys can help in planning maintenance, managing asset value, and resolving disputes between landlords and tenants by providing a clear and unbiased record of the property’s condition. By identifying potential issues early, property owners can save on costly repairs down the line.

Types of Dilapidation Surveys

Dilapidation surveys can vary depending on the stage of the property lease or the specific needs of the property owner or tenant. The main types include:

• Interim Surveys: Conducted during the tenancy agreement, especially if it’s a long-term lease, to monitor the property’s condition and ensure maintenance obligations are being met.
• Terminal Surveys: Carried out towards the end of a lease to assess any changes or damage that has occurred since the start of the lease or the last survey.
• Schedule of Condition Surveys: Often attached to a new lease, these surveys document the state of the property at the beginning of the tenancy, providing a benchmark for future comparison.

What to Expect During a Dilapidation Survey

A dilapidation survey involves a thorough inspection of the property to assess its condition. The surveyor examines all aspects of the property, including structural elements, fixtures, and finishes. They look for signs of wear and tear, structural damage, or alterations made to the property. The process can vary in length depending on the size and complexity of the property but generally involves:

• A visual inspection of both the interior and exterior of the property.
• Taking photographs and detailed notes to compile into a comprehensive report.
• Sometimes, discussions with the property owner or tenant about the findings and any concerns they may have.

How to Prepare for a Dilapidation Survey

Preparing for a dilapidation survey can make the process smoother and ensure that the results are accurate and reflective of the property’s condition. To help you prepare, here are some tips for property owners and tenants:

• Documentation: Gather all relevant property documents, including previous survey reports, building plans, and any records of maintenance or repairs.
• Accessibility: Ensure that all areas of the property are accessible to the surveyor, removing any obstacles that might prevent a thorough inspection.
• Cleanliness: While cosmetic appearances are not the focus, a clean property can help highlight issues that need attention.
• Communication: Be ready to discuss any specific concerns with the surveyor. Providing insights into any past issues or repairs can aid in a more detailed and accurate report.