Overview

Dilapidation claims are a routine part of commercial property management, but they are also one of the most common sources of disputes between landlords and tenants. Many landlords weaken their position by making avoidable mistakes, from overestimating claims to failing to prepare evidence. In this blog, the Bressummer A.R.K team outline the most frequent errors that we see landlords make and explain how to avoid them, ensuring smoother negotiations and stronger recovery of costs.

Dilapidations Claims

Towards, or shortly after, the end of a commercial lease, landlords often serve a dilapidations claim to recover costs for repairs, reinstatement and redecorations. Done correctly, this process protects the landlord’s investment and ensures the property is returned in the condition specified in the lease.

But too often, claims are rushed, inflated or poorly evidenced, leading to protracted disputes, legal challenges and, ultimately, reduced settlements. By avoiding common mistakes, landlords can strengthen their claims, protect their assets and maintain more constructive relationships with tenants.

Mistake 1: Overstating the Claim

One of the most frequent missteps is inflating the scope or cost of works. While landlords may hope to maximise recovery, excessive claims undermine credibility and can result in costly disputes.

How to Avoid It

  • Ensure claims reflect the actual obligations stated in the lease, not desired upgrades.
  • Commission a professional surveyor to prepare a realistic Schedule of Dilapidations.
  • Focus on legitimate repair and reinstatement needs, not improvements or modernisations.
  • Have regards to possible statutory caps on claims under section 18 of the Landlord & Tenant Act 1927

Mistake 2: Failing to Reference the Lease Properly

Dilapidation obligations are defined by the lease itself. If a claim is not clearly tied to specific clauses, it may be challenged or dismissed.

How to Avoid It

  • Always link each item in the claim to the relevant lease clause.
  • Check for limitations e.g., tenant-only obligations for internal repairs.
  • Be wary of assuming tenant liability for structural elements if not specified.
  • Consider any stated timescales around notifying the Tenant to reinstate alterations.

 

Mistake 3: Ignoring the Schedule of Condition

Where a Schedule of Condition exists, it sets a baseline for the property’s state at lease commencement. Failing to account for it in a claim is a major error.

How to Avoid It

  • Review the Schedule of Condition carefully before preparing the claim
  • Exclude items that were already in disrepair at the start of the lease
  • Use it as a tool to demonstrate fairness and strengthen credibility.

Mistake 4: Delaying Action Until the Lease Ends

Some landlords wait until after tenants vacate to assess repairs. By then, opportunities for early resolution may be lost and deterioration may worsen.

How to Avoid It

  • Consider interim schedules during the lease to address issues early.
  • Carry out inspections well before lease expiry to allow dialogue with the tenant.
  • Proactive management can reduce disputes and ensure the property is re-let more quickly.

 

Mistake 5: Neglecting Professional Input

DIY claims or reliance on generic templates often fail to stand up to scrutiny. Without expert input, landlords risk making errors in scope, pricing or legal context.

How to Avoid It

  • Instruct a chartered building surveyor to prepare the claim and represent you in negotiations with the Tenant.
  • Seek legal advice for complex cases, particularly where lease terms are ambiguous

Have regard to the ‘Dilapidations Protocol’ when preparing and negotiating any claims

  • Use recognised standards, such as RICS guidance, to ensure compliance.

Mistake 6: Using Dilapidations as a Profit Tool

Some landlords attempt to use dilapidations as a backdoor to fund refurbishments or upgrades. Courts typically reject this approach.

How to Avoid It

  • Understanding the statutory limitations set out in section 18 of the Landlord & Tenant Act 1927 and whether this may apply to part or all of your claim.
  • Keep claims proportionate and evidence-based, dilapidation claims should be a true reflection of loss and not a penalty.
  • Recognise that legitimate claims are about restoring the property, not enhancing it.

Mistake 7: Poor Communication with Tenants

Confrontational approaches or lack of dialogue often escalate disputes unnecessarily.

How to Avoid It

  • Open channels of communication early.
  • Share inspection findings before serving a formal claim.
  • Where possible, negotiate pragmatic settlements that work for both parties.

 

Protect Your Properties Value

For landlords, dilapidations are not just about recovering costs, they are about protecting property value. But inflated, poorly evidenced or badly timed claims can damage credibility and lead to disputes that cost more than they recover.

By avoiding these common mistakes, landlords can make claims that are fair, defensible and more likely to result in efficient settlements. The key is preparation, professional advice, and a focus on genuine obligations.

Do you need support preparing or defending a dilapidations claim? Bressummer A.R.K’s expert surveyors ensure your claims are realistic, defensible and effective. Contact us today to safeguard your commercial property assets.

Featured FAQs

  • What is the most common mistake landlords make in dilapidations claims?

    Overstating the claim, which undermines credibility and leads to disputes.

  • Do landlords always win dilapidations disputes?

    No. Courts scrutinise claims closely and inflated or poorly evidenced claims are often reduced significantly.

  • How can landlords strengthen their dilapidations claims?

    By commissioning professional surveyor reports and using surveyors in negotiations, referencing lease clauses and keeping claims proportionate.

  • Can a landlord claim for improvements under dilapidations?

    No. Claims must be limited to restoring the property to the condition required by the lease, not enhancing it.

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