The Ins & Outs Of An Office Dilapidation: What It Means & What Is Involved?

Office Dilapidations

Moving premises can be an exciting time for a business but it can also be a turbulent one. Aside from finding new offices to move to and agreeing to the lease there is the question of how to leave the old one.

A business may have had extensive work done to align it with operational needs and branding. Usually, when renting a commercial property, there are rules around what can be done when moving in and returning any premises to its original state at the end of the lease period. That’s where the process of office dilapidations comes in.

What are dilapidations?

When a business signs a commercial lease for an office it will normally be a full repairing and insuring lease where the tenant is responsible for the repairs, both internal and external, and the structure of the building.

There will be clauses within that lease detailing what happens during the rental period and when it ends. For example, there may be requirements to obtain landlord permission before any works are undertaken. When the lease ends, a business may have to carry out decorations or repairs to return it to its original state. If the tenant doesn’t undertake the repairs before moving out this will be considered a breach of contract and the landlord can claim against the tenant.

This can often amount to more than a year’s rent so it’s crucial any business looking to move understands the terms of their lease and undertakes the necessary repairs so they can move out without complications.

Section 18 – One key part of UK office dilapidations is the importance of Section 18 of the Landlord and Tenant Act 1927. This is a legal provision that balances the interests of landlords and tenants and ensures tenants aren’t subject to excessive repair costs. It also allows landlords to recover any fair compensation for a reduction in a property’s commercial value.

Initial Building Survey – Any incoming tenant should consider having a chartered surveyor carry out an initial building survey and allow an adequate budget for repairs when the lease ends.

Schedules and Tactics – A landlord can serve a schedule of dilapidation at any time during a tenancy which lays out all the repairs/maintenance they deem to have arisen under the lease. The tenant must either carry out the repairs or pay the landlord damages which equates to the cost of the work carried out by the landlord.

Dilapidation Surveyor – A dilapidation surveyor can prepare the schedule of dilapidations for the landlord at the end of the lease.

Compliant Fit Outs

If a business is moving into a property and requires a office fit-out, it’s important to check what the lease says. Any alterations must follow the lease procedures such as obtaining the landlord’s permission and these need to be removed at the end of the lease (if requested by the landlord). Depending on the work carried out it may be possible to negotiate with the landlord to leave some alterations in place.

Office Dilapidation Services

If office dilapidation services are required, then a business will need expert help carrying those out. At Jennor, we can assist with any office repair, being mindful of your budget and minimising any operational disruption. Our team will take care of all aspects of dilapidation works, ensuring the transition from one workspace to another runs smoothly with no hidden costs. Some of the benefits of hiring a professional fit-out company include:

Extensive expertise – Our team is extremely knowledgeable and will be able to advise on the work required to meet the terms of any lease.

One point of contact – Using one team means we deal with everything and keep you updated throughout the process.

Cost-effective – Proactively dealing with office dilapidations can help keep the costs down, avoid costly legal disputes, and ensure less stress when moving.

Our office dilapidation services include everything from liaising with you and your landlord, surveying every room you’ve occupied and completing all the building and refurbishment you need.

Get in touch with our experienced team today to find out how we can help you manage your office dilapidations efficiently and effectively!!