Dilapidations at lease end can represent one of the largest and least predictable costs for commercial tenants, particularly where alterations have been carried out during the term. From reinstatement of fit-out works to repairing and redecorating the premises, tenants are often surprised by the scope and scale of their contractual obligations when preparing to vacate. This checklist is designed to help tenants understand the key steps required when moving out of a commercial property, ensuring lease obligations are met, risks are managed, and avoidable dilapidations costs are minimised.
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When preparing to move out of a commercial property, tenants should follow a thorough checklist to ensure they meet all lease obligations and avoid unnecessary costs. Below is a comprehensive move-out checklist for tenants, covering legal notifications, property condition, and administrative tasks:
- ☐ Serve Notice of Termination (if required): If your lease is protected by the Landlord & Tenant Act 1954 and you do not want to renew, make sure you serve a Section 27 notice at least 3 months before vacating. (Not needed for fixed-term leases outside the Act, but confirm your status.) For break clauses, serve the break notice by the deadline specified. Keeping proof of service (recorded delivery or as required by lease) is essential.
- ☐ Review Lease for End-of-Term Obligations: Re-read the yield-up clause and any end-of-term requirements. Common obligations include redecoration, carpet cleaning/replacement, removal of alterations, and repairing any damage. Note each item you must do. For instance, “most leases require a tenant to redecorate the premises before the end of the term” check if you need landlord’s approval for paint colors/materials. Also, if the lease says to shampoo or replace carpets, plan for that.
- ☐ Repair Any Damage: Conduct a walkthrough (ideally with your surveyor) and identify any damage or disrepair beyond fair wear-and-tear. Make minor repairs: fix holes in walls (from mounted TVs or equipment), replace broken light bulbs/tiles, repair door hardware, etc. Addressing these small items can prevent larger claims. Remember, you must return the premises in the state defined by your lease if no special limit was set, that means “good repair, even if issues existed at start”.
- ☐ Remove Tenant Alterations (if required): Detach and remove any alterations you installed that the landlord hasn’t agreed can stay. This might include partitions, added rooms or structures, heavy machinery, special electrical runs, signage (internal and external), etc. Restore the areas where they were attached to their original condition (patch and paint walls, repair flooring or ceilings where needed). If uncertain, ask the landlord in writing if they want something to remain – get consent to leave it to avoid an assumption. By default, “the landlord probably will require you to reinstate alterations” unless stated otherwise. Don’t forget to cap off any custom plumbing or wiring back to base building condition safely (using qualified contractors).
- ☐ Clean and Redecorate: Thoroughly clean the premises. This means removing all debris, cleaning floors (sweep/vacuum/mop), wiping down surfaces, etc. If the lease requires, repaint walls (often in a neutral color or whatever the lease/landlord specifies). Doing a fresh coat of paint can leave the place looking cared for and may fulfill your decoration covenant. Also, remove any wall stickers, posters, or branding and make sure no residue or damage remains.
- ☐ Replace/Repair Floor Coverings: If your lease or an agreement stipulates replacing worn-out floor coverings (carpet, vinyl, etc.) at the end, arrange for that. Some leases specifically say “replace carpets if they are stained or worn”. If not replacing, at least professionally deep-clean carpets and floors to present them as well as possible.
- ☐ Remove All Personal Property: Take all your belongings out including furniture, equipment, inventory, and any items you’ve bolted to walls or floors (trade fixtures). The lease likely says “you must remove any items that belong to you from the premises, including fixtures you installed”. Leaving items can cause delay and you might be charged for removal/disposal by the landlord. If there are items you cannot remove (e.g., built-in safes or cabling you ran in walls), discuss with the landlord sometimes they’ll accept them, but get that in writing or they may later charge you.
- ☐ Remove Signage: Take down any signs, decals, or advertising you installed on the building, door, windows, or elsewhere on the property. Also remove company logos or signboards from common sign monuments if applicable. Restore the surface to original condition (patch holes from sign mounts, etc.). The lease usually specifies this, and missing it can incur charges.
- ☐ Disconnect Utilities and Settle Accounts: Coordinate with utility providers (electricity, gas, water, internet, telephone) to take final readings on your move-out day and close or transfer the accounts out of your name. Provide forwarding contact for the final bills and ensure they’re paid. You don’t want to be paying for utilities after you leave, nor do you want services shut off prematurely. Also, drain and winterize any systems if needed (for instance, if a space will be vacant and it’s winter, ensure plumbing is safe – though this might be the landlord’s job post-lease, it’s good to communicate about it).
- ☐ Inform Authorities and Update Address: Notify the local council (for business rates) that you’re vacating as of lease end, so you are not billed thereafter (business rates responsibility typically reverts to the landlord or next occupant from the next day). Update your mailing address with clients and suppliers. It’s wise to set up mail forwarding from the vacated premises to your new address for a few months, so nothing important is missed.
- ☐ Final Inspection with Landlord: Arrange a walk-through with the landlord or their agent on the last day (or just after you’ve moved out but before lease expiration). Use a checklist to go through each obligation. It’s ideal to have them acknowledge the condition. While they may still take time to prepare a dilapidations schedule, doing a joint inspection can surface any contentions early and you might be able to address minor last-minute items.
- ☐ Return All Keys, Fobs, and Access Cards: On the last day, return all sets of keys (don’t forget spares), security fobs, access cards, parking garage remotes, etc., to the landlord or managing agent. Get a receipt for keys returned. If you changed any locks during your tenancy (with permission, hopefully), provide those new keys or restore the original locks as required.
- ☐ Obtain Landlord’s Confirmation (if possible): It can be helpful to get a written confirmation from the landlord that you have vacated and turned over possession as of a certain date and that keys were received. This can prevent disputes about the surrender date. Sometimes this is done in a handover letter.
- ☐ Photographic Evidence: Take photos or video of the premises after you’ve completed all the tasks and moved out, documenting the condition in which you left it. This is your record in case the landlord later claims something was left in poor state. Focus on areas you repaired or special features, as well as an overall walkthrough.
By following this checklist, you significantly reduce the chance of disputes and additional costs after you leave. Essentially, you want to leave the property in the condition required by your lease (no more, no less) and make sure all loose ends (legal and logistical) are tied up. This diligence not only avoids deductions from any deposit and minimizes dilapidations claims, but also maintains goodwill, important if you hope for a positive reference from this landlord or simply to uphold your business’s reputation.
Ultimately, while a checklist like this is a valuable starting point, no two leases are the same and the real risk lies in misunderstanding how your specific lease terms apply in practice. A dilapidations specialist can review your lease in detail, identify which obligations genuinely bite at lease end, and help you prioritise actions that reduce exposure to unnecessary cost, particularly around alterations, reinstatement, and repair standards. Taking professional advice early allows you to approach the move-out process strategically, challenge overreaching claims, and, where appropriate, negotiate pragmatic outcomes with the landlord. In many cases, the cost of expert input is far outweighed by the savings achieved through avoiding over-specification, betterment, and preventable dilapidations liability.
About Fourth Wall Building Consultancy
Fourth Wall Building Consultancy specialises in UK commercial property dilapidations, offering expert surveying and consultancy services tailored to landlords and tenants. We offer:
- Highly Experienced Chartered Surveyors with a proven track record in dilapidations claims.
- Transparent Pricing Models to help clients budget effectively.
- Early Engagement Approach, minimizing costly end-of-lease surprises.
- Comprehensive Reporting using the latest digital tools for clarity and precision.
- Dispute Resolution Support to avoid expensive litigation.
Related Services
- Dilapidations surveys and schedules
- Pre-Lease compliance and condition assessments
- Building condition reports and maintenance planning
- Dispute negotiation and expert witness support
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Frequently Asked Questions
A dilapidations checklist is a practical guide to help tenants ensure they comply with all lease obligations when vacating a commercial property. It covers legal notices, repair and reinstatement works, cleaning, utilities, and handover requirements. Following a structured checklist reduces the risk of missed obligations, disputes with the landlord, and unexpected dilapidations claims after lease expiry.
Tenants should ideally start preparing 12–18 months before lease end, particularly for larger or more complex properties. Early preparation allows time to review lease obligations, obtain professional advice, plan reinstatement or repair works, and engage with the landlord about end-of-term requirements. Leaving this too late often results in higher costs and reduced negotiating leverage.
In many commercial leases, yes. Most leases include a covenant requiring the tenant to redecorate in the final year or final months of the term, often in “good and substantial” condition and in approved colours. The exact requirement depends on the lease wording, so it is essential to review the decoration clause carefully rather than assuming a light touch will be acceptable.
If alterations are not removed where the lease requires reinstatement, the landlord can usually claim the full reasonable cost of removing them and making good, often as part of a dilapidations claim. These costs are not capped by Section 18 of the Landlord and Tenant Act 1927, making alteration reinstatement one of the highest-risk areas of dilapidations liability.
Not unless the landlord agrees in writing. Even value-adding alterations can still be required to be removed if the lease or licence to alter allows the landlord to insist on reinstatement. Tenants should never assume improvements cancel out their obligations formal consent is essential.
Yes, in most cases. Leases typically require the premises to be returned clean and free of debris. Professional cleaning particularly of carpets, kitchens, welfare areas, and glazed surfaces, helps demonstrate compliance and reduces the risk of the landlord claiming cleaning costs (often at a premium rate) as part of dilapidations.
Tenants should retain: dated photographs or video of the property at handover; records of repairs, redecoration, and reinstatement works; invoices and completion certificates; and proof of notice service and key return. This evidence can be crucial if a landlord later alleges non-compliance or overstates the condition of the premises.
Yes. Landlords typically prepare and serve a Schedule of Dilapidations after lease expiry, often several months later. This is why documenting condition at handover and ensuring compliance with lease obligations is so important, claims are frequently higher when works are left for the landlord to carry out.
No checklist can guarantee that a landlord will not pursue a claim, but thorough compliance significantly reduces both the scope and value of any claim. It also strengthens the tenant’s negotiating position, making it easier to challenge betterment, unreasonable costs, or works that exceed lease obligations.
Yes. A dilapidations specialist can interpret lease obligations, identify high-risk items, advise on which works genuinely need doing, and help manage landlord expectations. Early advice often results in substantial cost savings and avoids the common mistake of either under-complying (leading to claims) or over-complying (leading to unnecessary spend).
