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Schedules of Dilapidation

What is a schedule of dilapidation?

 A schedule of dilapidation, also known as a schedule of condition or dilapidations survey, is a detailed report that comprehensively documents the physical condition of a property at a specific point in time, typically at the beginning or end of a lease agreement.

This report serves as a crucial record, outlining any existing defects, damages, or areas requiring repair or maintenance within the property. It provides a snapshot of the property’s condition, acting as a baseline for comparison and reference during the lease term or upon its expiration.

The schedule of dilapidation is a legally binding document that can be used to determine the respective responsibilities of the landlord and tenant regarding the property’s maintenance and repair obligations. It helps to establish the extent of any changes or deterioration that may have occurred during the tenancy period.

Why is it important?

A schedule of dilapidation is essential for both landlords and tenants for several reasons:

Protecting interests: The schedule helps protect the interests of both parties by clearly documenting the property’s condition at the start and end of the lease. This ensures that any damages or deterioration that occur during the tenancy can be accurately identified and addressed appropriately.

Avoiding disputes: By having a comprehensive record of the property’s condition, the schedule of dilapidation can help prevent disputes between landlords and tenants regarding the extent of damages or repairs required. It serves as an objective reference point, reducing the potential for disagreements or misunderstandings.

Determining liability: The schedule aids in determining the liability for any damages or repairs required at the end of the lease term. If the property’s condition has deteriorated beyond normal wear and tear, the tenant may be responsible for the costs of reinstatement or repair, as outlined in the lease agreement.

Facilitating dilapidations claims: In cases where the tenant is liable for certain repairs or reinstatement works, the schedule of dilapidation provides the necessary evidence and documentation to support any dilapidations claims made by the landlord.

Budgeting and planning: For landlords, the schedule can help in budgeting and planning for future maintenance or refurbishment works, as it highlights areas that may require attention or investment.

What is the process?

The process of creating a schedule of dilapidation typically involves the following steps:
Property inspection: A building surveyor or an experienced professional conducts a thorough inspection of the property, methodically assessing each area, including the structure, exterior, interior finishes, fixtures, and services (e.g., plumbing, electrical, heating, ventilation).

Defect identification: During the inspection, the surveyor carefully notes and documents any existing defects, damages, or areas requiring repair or maintenance. This can include cracks, damp issues, worn finishes, faulty installations, or any other issues that deviate from the expected condition.
Photographic evidence: The surveyor captures detailed photographic evidence of the observed defects and overall property condition. These photographs are included in the final report as supporting documentation.

Measurements and quantification: Where applicable, the surveyor may take measurements or quantify the extent of defects or required repairs to provide accurate estimates for potential repair costs.

Report compilation: Using the inspection findings, photographs, and any necessary measurements, the surveyor compiles a comprehensive report, known as the schedule of dilapidation. This report typically includes a detailed description of the property, a room-by-room or area-by-area assessment of the condition, and specific recommendations for repairs or reinstatement work.

Cost estimates: In some cases, the schedule of dilapidation may also include estimated costs for the recommended repair or reinstatement works, providing a basis for budgeting or negotiation between the parties involved.