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SCHEDULE OF DILAPIDATIONS
RICS-Compliant Reports for Commercial Landlords & Tenants
Protect your investment. Understand your obligations. Settle fairly.
At the end of a commercial lease, the condition of the property can lead to costly disputes unless it's properly documented. At AMS Surveys, we deliver Schedule of Dilapidations reports that clearly identify breaches of lease obligations relating to repair, reinstatement, and decoration.
Whether you're a landlord seeking to enforce lease terms or a tenant facing a claim, we provide expert support, fully aligned with RICS guidance and best practices in commercial property.
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WHAT IS A SCHEDULE OF DILAPIDATIONS?
A Schedule of Dilapidations is a formal document that outlines a tenant’s breaches of lease in relation to the physical condition of a commercial property. It is typically issued near or at the end of a lease and can form the basis for:
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Negotiated settlements
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Reinstatement works
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Legal proceedings (if required)
We produce three types of schedules:
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Interim Schedule – Issued during the lease term
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Terminal Schedule – Issued towards the end of the lease
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Final Schedule – Issued after lease expiry, often forming the basis of a claim
All AMS Surveys reports are prepared in line with the RICS Dilapidations Guidance Note.
LANDLORD VS TENANT DILAPIDATIONS ADVICE
Schedule of Dilapidations for Landlords
Enforcement and asset protection
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Preparation of interim, terminal and final schedules
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Identification of breaches of covenant
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Support for cost recovery and damages
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Reports suitable for negotiation and legal review
Schedule of Dilapidations for Tenants
Defence, mitigation and liability control
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Review of landlord schedules
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Identification of overstated or invalid claims
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Section 18 (diminution in value) considerations
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Negotiation and settlement support
SCHEDULE OF DILAPIDATIONS
Dilapidations refer to the condition and physical state of tenanted property, encompassing both leisure and commercial properties. Specifically, dilapidations pertain to breaches of the agreement between a tenant and landlord regarding the maintenance and repairs of a rental property.
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The purpose of the Schedule of Dilapidations is to outline all the repairs that a tenant must complete to maintain the property’s value and prevent future repair costs from escalating.
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Tenant responsibilities outlined in the schedule include redecoration, remedial works, and repairs for damage caused by mistreatment, poor repairs, or neglect of maintenance.
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Furthermore, the schedule serves as a comprehensive list of agreed-upon tenant obligations, ensuring clarity and transparency for lease compliance regarding maintenance expectations.
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Consequences of non-compliance with the schedule include the potential for a Dilapidations Claim to be issued by the landlord during or after the lease term.
DON’T PAY FOR REPAIRS THAT ARE NOT YOUR RESPONSIBILITY
A Schedule of Dilapidation report is a document outlining any breaches of repairing obligations and other clauses within a lease agreement. It identifies any repairs, redecoration, maintenance, or refurbishment work that a tenant is required to undertake to ensure that the property is returned to the landlord in the condition specified by the lease terms.
DILAPIDATIONS CLAIMS EXPLAINED
A Schedule of Dilapidation is typically a lease 'Interim Schedule of Dilapidation' or prepared at the end of a lease period as a 'Terminal Schedule of Dilapidation'. The repairs identified can be known as a Dilapidations Claim and allow you to outline the repairs your tenant is responsible for before they exit the contract. These will be based on your lease agreement and the original property condition using the Schedule of Condition, if you have one.
COMMERCIAL PROPERTY TYPES COVERED
We advise on dilapidations for:
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Office buildings
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Industrial and warehouse units
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Retail premises
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Leisure and hospitality properties
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Mixed-use commercial buildings
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Older and heritage commercial assets
COVERAGE ACROSS ENGLAND AND WALES
AMS Surveys acts nationwide, with strong regional Commercial Building Surveying expertise across:
HOW IS A SCHEDULE OF DILAPIDATIONS PREPARED AND ISSUED?
Landlords usually issue a Schedule of Dilapidations using an assessment by a surveyor. The surveyor inspects the property to determine if any lease terms have been violated. The Schedule is typically issued before the lease ends, allowing the tenant to access the property for necessary repairs.
There are three types of Schedule of Dilapidations to be aware of:
Interim Schedule of Dilapidations: Usually implemented to promptly inform the tenant of an urgent issue and ensure compliance with repair requirements as soon as possible. These schedules are issued during the lease period.
Terminal Schedule of Dilapidations: More detailed and identify specific disrepair issues on the site or building that need immediate attention. These schedules are issued during the last three to 18 months of the lease.
Final Schedule of Dilapidations: Covers issues like remedial works and their estimated costs. This schedule is typically issued when the lease has expired but repairs have not been completed.
The primary purpose of a Schedule of Dilapidations is to safeguard the property’s value by maintaining its condition. It helps assess the building’s integrity from its structural components to minor damage.
A Terminal or Final Schedule of Dilapidations usually outlines the necessary repairs and estimates the costs. This information can prevent more costly repairs from becoming necessary if left untreated. An Interim Dilapidations Schedule may be issued early in the lease to serve as a reminder of the repairs that must be completed by the end of the lease. This can help avoid unexpected costs at the lease’s end.
If dilapidated repairs are not completed by the lease’s expiration, the tenant may face a dilapidations claim. This claim could take the form of quantified demands. Before responding, a tenant should evaluate the accuracy of the schedule of dilapidations against the tenant’s obligations outlined in the lease. Additionally, tenants should confirm the costs (if provided as quotes). The tenant may find it beneficial to seek assistance from a Chartered Dilapidations Surveyor to facilitate this process. In the event of a court claim, a property expert witness may be necessary to support the tenant’s position.
WHY INSTRUCT AMS SURVEYS?
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MRICS Chartered Building Surveyors
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Independent, party-specific advice
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Strong understanding of commercial leases
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Experience working alongside solicitors and managing agents
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Clear, defensible reporting
All advice is delivered in line with professional standards issued by the Royal Institution of Chartered Surveyors.
If you plan to lease a Commercial Property, it’s vital that a Schedule of Condition is undertaken before the lease begins. As a comprehensive report that outlines the original condition of the building before the entry of the new tenant, this can prove invaluable when raising dilapidation claims.
Schedule of Dilapidations - FAQ
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