For any business navigating the complex world of commercial real estate, it’s crucial to understand the essential services that ensure a smooth leasing process and protect your investment whether you are a tenant or a Landlord. Dilapidations, schedules of condition, pre-lease, and pre-acquisition services are all pivotal in securing and maintaining your property.
In this blog, we’ll run through the key services you need to ensure your budgets and business are protected, and give you the best insights and tips from our dilapidations experts. So, let’s jump right in, can you negotiate a dilapidations claim?
Yes you can negotiate a dilapidations claim whether you’re a commercial landlord serving the dilapidations claim, or you’re a commercial tenant who has been served a claim by your landlord. You’ll need to instruct a RICS Chartered Building Surveyor to inspect the property and negotiate the claim on your behalf.
Read on to find out how dilapidations negotiation by an experienced Chartered Building Surveyor will save you thousands of pounds…
What Are Dilapidations?
Dilapidations refer to the repairs and maintenance that commercial tenants are legally required to carry out at the end of a lease. They can range from minor claims in relation to specific defects to significant multimillion-pound claims and associated refurbishments.
If you’d like to learn more about what a dilapidations survey is, and when one is required, read our helpful blog.
When Should You Get Help With Dilapidations?
When approaching dilapidations claims, you should enlist the support of a Chartered Building Surveyor before signing your commercial lease. This will help protect you from extensive and unexpected claims at the end of your lease if you’re a tenant, or if you’re a landlord it will also help you protect your property and its condition, and gain the best possible deal from the tenancy.
Before signing your lease, a Chartered Surveyor can conduct a pre-lease survey to advise on the condition of the property, expected remedial costs and your dilapidations responsibilities in relation to the lease, and a schedule of condition to create a detailed photographic record of the property’s condition.
The schedule of condition would then be appended to your lease to record the condition and protect you when it comes to the end of lease dilapidations claim and associated negotiations.
What if I’ve Already Signed My Lease?
If you’ve already signed your commercial property lease and you’re coming up to a lease break or the end of your lease, don’t worry, a Chartered Surveyor can still help to protect you with a dilapidations assessment and dilapidations negotiation.
Here at Fourth Wall, our team has a wealth of experience working with both landlords and tenants, enabling us to understand each party’s perspectives, legal requirements, and negotiating techniques to provide the best service, protection and cost savings to you. Get in touch with our dilapidations experts here.
What Different Dilapidations Services Are There?
Dilapidations aren’t straightforward. In fact, you may require a combination of services in order to negotiate a dilapidations claim effectively. Here they are in more detail:
Schedule of Dilapidations Inspection and Preparation
A schedule of dilapidation inspection is a service for commercial landlords to assessing the current state of the property to determine necessary repairs and refurbishment costs.
Dilapidations Claim Assessment
A claim assessment provides commercial tenants with an understanding of the likely landlord claim at the end of the lease, allowing the tenant time to budget for the future dilapidations process, and when conducted during the lease, means the tenant to review works that can be completed in the interim to reduce future claims.
Dilapidations Negotiation
Negotiation services are beneficial to both Landlords and Tenants. When negotiating, a surveyor, like Fourth Wall, can act as an intermediary between landlords and tenants to agree on fair settlement costs. We can act for either party in these negotiations, and will work to get you the best possible deal.
Schedule of Condition
A Schedule of Condition is a detailed report that records the condition of a property before a lease agreement is signed. This document protects both landlords and tenants by clearly outlining the state of the property at the outset and will include detailed and comprehensive reporting and expert insights to support you with maintain the property’s condition to prevent future disputes. We can also conduct comparative analysis to track changes or damages over time.
Pre-Lease Services
Before signing a lease, it’s crucial to understand the commitments and responsibilities you’re taking on. Pre-lease surveys ensure you enter agreements with full knowledge and minimal risk.
The surveys include lease reviews to provide you with a detailed analysis of lease terms to identify potential risks and liabilities, helping to assist you in understanding what you’re entering into and how best to protect yourself. Your surveyor may also conduct condition assessments to gauge any immediate repair needs and recording the property condition at lease commencement to reduce your dilapidations liability in the future.
Project Management, Contract Administration, and Principal Designer Services.
Both Landlords and Tenants can benefit from comprehensive project services. For landlords we oversee the execution of required works following tenant vacation to ensure compliance, quality, where possible the works are recoverable under dilapidations, and that health & safety is overseen. For tenants, a surveyor can manage works ahead of vacation to assist in reducing the dilapidations claim sought by the landlord.
Learn more about project management, contract administration, and principal designers on our website.
How Much Does Dilapidations Negotiation Cost?
If you enlist Fourth Wall Building Consultancy to negotiate your dilapidations claim, our fee is calculated on a percentage basis. This means, if you’re a commercial tenant, you’ll only pay us a percentage of what we have saved you, meaning that really our negotiation services actually save you money rather than cost you anything extra!
If you’re a commercial landlord, we’ll work on a percentage basis of the dilapidations claim, but these costs are covered by the tenant so our services to you don’t cost you anything.
For other services, such as a schedule of condition or pre-lease survey, we’ll take a look at the size and complexity of your property and provide you with a competitive fee. Get a quote from our Midlands dilapidations experts here.
With extensive experience in the Midlands region, our team of experts is dedicated to providing top-notch services tailored to your specific needs. We understand the nuances of each property type and can offer bespoke advice and solutions to ensure your commercial property dealings are smooth and profitable.
Dilapidations Guidance in the Midlands With the Help Of Fourth Wall
Navigating dilapidations, schedules of condition, and pre-lease processes can be daunting. However, with the right expertise and guidance, you can make informed decisions that safeguard your interests.
Whether you’re eyeing a unit in Warwick House Industrial Estate, exploring opportunities in Minworth Trade Park, or diving in to a retail unit in the Bull Ring, our comprehensive services are designed to support you every step of the way.
Fourth Wall’s dilapidations in the Midlands is led by Pete Nichols BSc (Hons) MRICS. To get a comprehensive quote from Pete, complete our short form here, email pete.nichols@fourthwallbc.com or call 0121 517 2037. We also have offices in Sheffield, Manchester, and Leeds.
