Difference between Dilapidation and General maintenance

Dilapidation is a tenant's legal and financial responsibility towards the landlord to repair the leased property at the end of the lease term, while general maintenance involves regular maintenance.

What is the difference between dilapidation and general maintenance?

If you lease a commercial property and are in a legal contract with the landlord to reinstate the property to its previous condition at the end of the lease term, you need to know about dilapidation. If you breach the legal contract to repair the building at the end of the lease term, the landlord can make a dilapidation claim against you. Failure to restore the commercial property gives your landlord the legal right to claim financial compensation.

However, general maintenance does not obligate you as a tenant or the landlord to maintain the property during the tenancy unless specified in the contract. It may involve various types of work, such as keeping the water supply, managing the interior decoration, or others. The landlord may or may not do general maintenance regularly. Still, it is in your best interest to ensure that the landlord of your commercial property provides general maintenance services.

Dilapidation survey and building survey for general maintenance

A dilapidation survey can be conducted at the end of the lease term to evaluate the state of disrepair of the leased property at the end of the lease term. Dilapidation survey reports include details of the general damages caused by the tenant to the commercial lease property, including physical or structural damage. These surveys often play a crucial role in resolving conflicts between tenants and landlords regarding claims for damaged property. Professional surveyors usually conduct these surveys and provide details of property damage in survey reports.

Commercial property maintenance surveys are generally conducted to evaluate the overall integrity of the property. Professional surveyors look for damages in the building structure, electrical systems, and fire safety mechanisms in their surveys. They also look for general maintenance issues in commercial properties, such as peeled-off paint, broken fixtures, and damaged floors or ceilings. A general building survey is conducted to evaluate maintenance needs and protect against a further escalation of property damage.

The legal aspect of dilapidation and general maintenance

Legal disputes between tenants and commercial landlords over property disrepair at the end of the tenancy are common. The landlord must mention in the lease contract the tenant's obligation to repair the property at the end of the lease term to avoid legal disputes. If the tenant breaches the contract by leaving the commercial property in disrepair, the landlord has a legal right to a dilapidation claim. However, the landlord should not repair all the damages by himself and make a dilapidation claim. He can not make a claim that the tenant may not have caused.

There may be legal grounds to claim financial expenses at the end of the lease term. Still, general commercial property maintenance during the lease term is only legal if specified in the contract. This is why a general building survey evaluates the property's damage level.

Responsibilities of the tenant and landlord

Tenants' and landlords' responsibilities include setting a lease contract defining all the clauses. This will help both parties avoid legal disputes at the end of the lease term. Landlords should mention their responsibilities and general commercial property maintenance, such as supplying water, electricity, and other necessary services.

Tenants should hire professional dilapidation surveyors to provide a detailed report of the services and estimated costs. Experienced contractors who provide dilapidation services can meet the repair requirements.

If the tenant disrepairs the property, the landlord can hire a professional surveyor to evaluate the damages and make a legal claim for repair.

Relevant legal provisions for dilapidations in the UK

The Landlord and Tenant Act 1927 is the primary legal provision through which landlords can make a dilapidation claim. However, section 18 (1) of the Act suggests that the amount of the claim made by the landlord can not exceed the value of the damage caused by the tenant. It also states that no damage claim shall be rewarded to the landowner if somebody can prove that the landlord would have demolished the property at the lease end.

Hence, the commercial landowner should also understand the legal grounds for claiming compensation for disrepair against the damages caused by the tenants.

The purpose of dilapidation and maintenance can be similar, but its nature varies on legal grounds. The former is an obligation for the tenant at the end of tenancy, while the latter is only obligatory if it is mentioned in contracts. However, both parties require professional surveyors to evaluate the damage to the property. If you need a dilapidation service, feel free to contact CDL. We provide a wide range of services suitable for your personal needs.

Conclusion

Landlords can claim commercial financial compensation if tenants breach a contract and leave the leased building in disrepair. Hence, landlords should mention clear clauses in the lease agreement to avoid disputes in future. They are also responsible for ensuring that the general services are provided through continuous building maintenance.