If you’re nearing the end of a commercial lease, you may receive a schedule of dilapidations from your landlord. Often filled with technical language legal references, and potential financial implications, for many tenants this document can feel overwhelming.

Understanding how to interpret a schedule of dilapidations is critical to protecting your position and avoiding unnecessary costs.

Let’s dive into the key components of a schedule of dilapidations, and what you need to do.

What Is a Schedule of Dilapidations?

A schedule of dilapidations is a formal document prepared by a landlord (or their dilapidations surveyor) that sets out breaches of lease covenants relating to the condition of a commercial property.

These breaches typically include:

• Failure to maintain or repair the property
• Damage beyond fair wear and tear
• Alterations not reinstated
• Lack of required redecoration

Each item in the schedule is usually accompanied by:

• A description of the disrepair
• Reference to the relevant lease clause
• Recommended remedial works
• Estimated costs

When Is a Schedule of Dilapidations Issued?

Schedules of dilapidations are typically served at key stages of a lease:

1. Interim Dilapidations

Issued during the lease term if the property is not being maintained properly.

2. Terminal Dilapidations

Served near or at the end of a lease (the most common).

3. Final Dilapidations

Issued after lease expiry, often as part of a financial claim.

Understanding which type you’ve received is important, as it affects your obligations and response strategy.

What Does a Schedule of Dilapidations Include?

A professionally prepared schedule will generally include:

• Property details and lease information
• Itemised defects or breaches
• Lease clause references
• Costed repair works
• Recommended timeframe for completion

In many cases, the costs outlined can be substantial but they are not always accurate or enforceable as presented.

Are You Obligated to Pay the Full Amount?

Not necessarily.

Landlords often present a high initial claim, but this is subject to negotiation and legal principles such as:

Section 18 (1) of the Landlord and Tenant Act 1927

This limits claims to the actual loss in value of the property, not simply the cost of works.

Supersession

If the landlord intends to redevelop or significantly alter the property, some claims may not be valid.

This is where expert advice becomes essential.

How to Respond to a Schedule of Dilapidations

Receiving a schedule doesn’t mean you should accept it at face value. A structured response is key:

1. Instruct a Chartered Surveyor

Engage an expert to review the schedule and assess its validity.

👉 At PM+, our dilapidations survey service helps tenants and landlords evaluate claims, reduce liability, and negotiate fair outcomes. Get Your FREE Quote Today!

2. Prepare a Schedule of Condition (if applicable)

This can be used to challenge the landlord’s claims where the property condition was documented at lease start.

3. Issue a Scott Schedule

This is a formal response document comparing:

• Landlord’s claim
• Tenant’s position
• Agreed outcomes

4. Negotiate Settlement

Most dilapidations claims are settled through negotiation, not litigation.

Why You Shouldn’t Handle a Schedule of Dilapidations Alone

Dilapidations claims combine legal interpretation, construction knowledge, and valuation expertise.

Without professional guidance, tenants risk:

• Overpaying on claims
• Accepting invalid repair obligations
• Missing opportunities to reduce liability

Landlords also benefit from expert input to ensure claims are robust and compliant.

How PM+ Can Help

At PM+, our RICS Chartered Surveyors specialise in dilapidations, providing:

• Detailed dilapidations surveys and reports
• Expert advice on schedule of dilapidations claims
• Support with Scott Schedules and negotiations
• Representation for both landlords and tenants

👉 Learn more about our dilapidations survey service and how we can support your case.