Commercial property tenants can save money on dilapidations, and budget accurately for repair works required at the end of their leases, if they assess their likely bill for repairs and reinstatement at least a year in advance, according to a leading building surveyor.
Akim Kamangira, Head of Building Consultancy at KWB’s Birmingham commercial property agents, says taking on a building surveyor to assess the cost of dilapidations well before the end of the lease will allow occupiers to put money aside to pay this bill.
Akim said: “Dilapidations costs for tenants to repair, reinstate and decorate the premises at the end of a lease can run into hundreds of thousands of pounds, even if they have a Schedule of Condition, which documents the state of the premises when the lease started. A dilapidations bill is often unexpected as well, as tenants are focusing on their new premises.
“Having an early assessment means that tenants are not caught out and are in a good position when it comes to negotiating the final bill with the landlord.
“Acting early also means that tenants can consider undertaking the work themselves, where even bigger savings can be made. A building surveyor can help here too, by putting together and managing a costed programme of works.”
KWB’s qualified building surveyors have many years of experience in negotiating and advising clients regarding dilapidations, ranging in claim value from £2,000 to millions of pounds, acting on behalf of landlords and tenants. Instructions to mitigate costs include both interim schedules and terminal / final schedules of dilapidations. Having a dilapidations liability assessment enables an occupier to plan ahead and adopt a phased approach to repairs or enter into informed early negotiations with their landlord. KWB carries out a thorough assessment of an occupier’s lease or licence and surveys the premises prior to preparing a detailed report identifying potential issues.