A Simple Explanation of Dilapidations and Schedules of Condition - By: Dave Lakins

When landlords lease to tenants, it is imperative that their properties and assets are protected. Consequently, most leases contain certain obligations for the tenant to clean, decorate, repair and maintain the property, and for them not to alter the property without consent.

Tenants should be aware of all of these issues and of their significance before taking a lease. Unfortunately, tenants often only take these issues seriously when their landlord sends them a long list of defects to be remedied at the tenant’s expense, known as a Schedule of Dilapidation. This usually means that there is a requirement to pay various and sometimes quite substantial sums of money

In order to prevent this unpleasant outcome, it is recommended that the incoming tenant produce a Schedule of Condition with photographs which show the current state of the property at the start of the lease. The schedule is attached to and forms part of the lease agreements. The tenant is not required to return the leased property in any better condition than that shown on the Schedule of Condition, but it must also not be any worse.

Towards the end of the lease term, the landlord will ascertain whether or not the tenant has maintained the property in the condition set out in the lease, by checking if there has been any decline in the state of the property during the lease term. The terms of the lease will usually stipulate that the tenant is responsible for the landlord’s surveyor’s fee for producing a Schedule of Dilapidations as well as any ancillary legal fees.

As a general rule, a tenant should instruct their own specialist dilapidation surveyor once they receive a Schedule of Dilapidation with a legal notice. Once appointed, the tenant’s surveyor will carry out an inspection to verify the Schedule of Condition, deciding whether the Schedule is accurate and whether the standard of repair required by the Schedule is justified. The tenant’s surveyor will then get in contact with the landlord’s surveyor to negotiate the contents of the Schedule of Dilapidations.

The tenant’s surveyor will provide his comments and costings onto something called a Scott Schedule. The Scott Schedule is the standard format used to summarise both the landlord and tenant’s views on the dispute.

The next step is for negotiations to take place between the landlord and tenant, usually at the place where the dispute is. Meetings are without prejudice and must conform to all the relevant legal requirements.

Given the complex legal nature of such dilapidation disputes and the high level of expense they can incur upon the tenant, it is vital that tenants always ensure they fully understand the obligations of their lease agreement before they sign the original lease agreement.

About the Author

Want to find out more about Schedules of Dilapidations? Visit Building Surveying Solutions, a team of London surveyors specialising in London dilapidations and Schedules of Condition.

Article Directory Source: http://www.articlerich.com/profile/Dave-Lakins/36854

Additional Articles From - Home | Home & family | Home repair