Common Mistakes in Dilapidations and How to Avoid Them
Let’s be honest: dilapidations can be a headache. If you’re a tenant getting ready to hand back a property or a landlord trying to protect your investment, things can get messy fast. Confusion over repairs, reinstatement works, or lease obligations can turn what should be a simple exit into a costly showdown.
We have seen it all, from tenants blindsided by hefty end-of-lease bills because no schedule of condition was in place, to landlords left frustrated by incomplete reinstatement works or late negotiations.
The good news? Most of these problems can be avoided with a bit of planning, clear communication, and support from an experienced dilapidations specialist.
Let’s look at the most common dilapidation mistakes and how to steer clear them.
1. Skipping the Schedule of Condition
This one tops the list every time. Starting a lease without a schedule of condition is like buying a used car without checking for scratches it’ll cost you later.
A schedule of condition is your “before” photo. It captures exactly what the property looked like when you moved in, down to the scuffed skirting boards and cracked ceiling tiles. Without it, you could end up paying to make the place look better than when you found it.
How to avoid it:
- Always get a Schedule of Condition Survey before you sign.
- Hire a qualified building surveyor to do it properly.
- Keep both digital and printed copies safe.
- Make sure the schedule is attached to your lease.
This simple document can save you tens of thousands of pounds and a lot of drama.
2. Leaving Dilapidation Inspections Until the Last Minute
Waiting until the lease is nearly over to think about dilapidations? Big mistake! By that stage, repairs can be rushed, stressful, and way more expensive than planned.
Why it happens:
- You have been busy running your business; that’s fair enough.
- You assume you will “sort it later.”
- You don’t realise how much work might actually be needed.
How to avoid it:
- Book mid-lease inspections to catch issues early.
- Spread maintenance costs over time.
- Bring in a dilapidations specialist at least 12 to 18 months before lease expiry.
- Budget for end-of-lease works from the start.
You could look at it like a dental check up, deal with the small cavities now, or face the root canal later.
3. Misunderstanding Your Lease Obligations
Commercial leases are full of fine print, and if you don’t understand it, it can bite you. Words like “repair”, “reinstate” and “maintain” might sound similar, but in lease language, they mean very different things.
Common missteps include:
- Assuming “fair wear and tear” covers everything, it rarely does.
- Landlords expect a higher standard of repair than what’s actually written in the lease.
- Forgetting reinstatement clauses like removing partitions or signage.
- Ignoring compliance obligations that link back to your lease responsibilities.
How to avoid it:
- Have a property solicitor and a dilapidation surveyor review your lease before signing.
- Ask. What exactly am I responsible for fixing or replacing?
- Keep a record of any landlord-approved alterations.
- Revisit your lease terms regularly, not just when the clock’s running out.
One more thing worth knowing: Section 18 of the Landlord and Tenant Act 1927 limits a landlord’s dilapidations recovery to the actual diminution in property value caused by the breach. That cap can significantly reduce what a landlord can claim – and most tenants never hear about it until they instruct their own surveyor.
Knowing your obligations early makes life easier and gives you the upper hand when it’s time to negotiate.
4. Poor Communication and Last-Minute Negotiations
Silence is not golden when it comes to dilapidations. Many disputes spiral simply because landlords and tenants don’t talk soon enough. Leaving it all until the last month of the lease can breed mistrust, panic, and inflated costs.
How to avoid it:
- Start talking at least six months before lease expiry.
- Use a professional surveyor to keep negotiations objective.
- Put everything in writing, even the “we’ll sort it later” chats.
Early, honest conversations save time, money, and relationships. Everyone wins.
5. Overlooking Party Wall and Compliance Issues
Dilapidations don’t happen in isolation. If your property shares walls or boundaries with others, the Party Wall Act 1996 might enter the chat.
If your reinstatement works affect a neighbouring property, say you’re doing roof repairs or structural changes, you may need to serve or respond to a party wall notice. Ignore it, and your work could grind to a halt.
How to avoid it:
- Respond promptly if you receive a party wall notice.
- If you’re serving one, get professional advice so it’s done properly.
- A dissent notice doesn’t stop your work; it just triggers surveyor appointments.
- Always get help from a party wall surveyor who understands how these rules tie into your lease.
Party wall issues can look small at first until they hold up your entire exit plan. Don’t let them.
Frequently Asked Questions
What are the most common dilapidations mistakes commercial tenants make?
Leaving it too late, skipping the Schedule of Condition, and accepting the landlord’s schedule without independent review. All three are avoidable with the right advice at the right time.
How much do commercial dilapidations cost on average?
Claims on smaller units can run from a few thousand pounds. On larger properties, six-figure claims are not unusual. With proper professional representation, the gap between the initial claim and the final settlement is frequently significant.
What is Section 18 in dilapidations?
Section 18 of the Landlord and Tenant Act 1927 caps a landlord’s recovery at the actual diminution in property value caused by the disrepair – not the face value of every item on the schedule. Where redevelopment is planned, that cap can reduce the claim considerably.
Can you challenge a dilapidations claim?
Yes. The landlord’s schedule is an opening position, not a final bill. Items can be challenged based on pre-existing conditions, overstated costs, obligations outside the lease, or the Section 18 cap. Most disputes settle through surveyor negotiation without going to court.
How long does a dilapidations negotiation take?
Most cases resolve within three to six months of the schedule being served. Starting early – before lease expiry rather than after – consistently produces faster and less costly outcomes.
Why Work with HORDE
Here’s the truth, dilapidations only become a nightmare when you leave them too late.
Our team of experienced dilapidation surveyors helps both landlords and tenants avoid the common traps from no schedule of condition disasters to end-of-lease showdowns. We handle everything from inspections and maintenance planning to negotiations and party wall procedures, making sure every box is ticked and every pound is well spent.
If you’re planning ahead or already facing a claim, we’ll help you protect your property interests, save money, and sleep better at night.
Get in touch today for our dilapidations services; let’s make your lease end stress-free.