Surveys for Commercial Dilapidation: Manchester, London, Bristol, Birmingham Kingston, and Cardiff.
As a commercial landlord, you must see to it that your tenant is legally bound to pay for any damages to the premises caused during the period of their tenancy, the repair and maintenance of the property are the tenant’s responsibilities – that is the fundamental principle underlying the tenant-landlord relationship. Before your potential tenant signs on the dotted line, have them inspected by an RICS Chartered Surveyor, then the surveyor can make a Schedule of Condition which serves as a baseline against which the property can be measured at the end of the lease.
Similarly, if you are a tenant served with a Schedule of Dilapidations (the document laying out the works for which you are responsible), instructing a Chartered Surveyor to conduct a dilapidation survey on your behalf could help in contesting what you believe to be unfair claims made against you.
What Does a Commercial Dilapidation Survey Entail?
Typically commissioned by landlords, dilapidation surveys could also serve tenants well in certain situations, when a Chartered Surveyor carries out a dilapidation survey, they look at the property thoroughly and room by room – then they make assessments on the property based on their findings. They will assess the following:
- Walls
- Ceilings
- Doors and frames
- Windows
- Floors
- Radiators
- Light fixtures
- Electrics
- Grills
In short, every visible part of your property will be inspected by the Chartered Surveyor, they might inspect neighboring properties as a stopgap measure to get a full picture of the building conditions of your property area.
If a property owner has a tenant who has not kept up a promised standard of maintenance a report can also be a basis for discussions with a tenant to try to reach an understanding about how to resolve any differences of opinion about the current condition of the property, allowing a layperson to see the difference between a property in good condition and one in only fair condition can open up a conversation.
Is It Possible for a Landlord to Profit from Commercial Dilapidations?
When preparing a Schedule of Dilapidations, landlords aren’t allowed to use tenants to generate profits; the only reimbursements they’re allowed to ask for must be based either on the cost of fixing what’s broken or on any other financial losses suffered as a result of the breach, including:
- Harm to neighboring properties
- Pollution of the land
- Lost income from rent or service charges while repair work is done
- Injury to the future right of possession
Is a Dilapidation Survey Necessary?
When a tenancy comes to an end, a surveyor questions the landlord about their intentions for the property, if the landlord plans to refurbish the property, for instance, the tenant is not liable for those costs. This is just one example of the benefit of being forthright, as well as the legal requirements for a landlord not to mislead a tenant about their intentions. More broadly, the commercial dilapidation survey serves to protect both parties in a legally defensible manner.
Commercial Dilapidation Survey Benefits
Commercial dilapidation surveys have a main focus and that is on commercial properties, surveyors, however, can perform these same surveys on residential properties. Indeed the procedures of the Dilapidation Protocol provide the best means for resolving a dispute concerning residential property issues.
- The Gross Rent Multiplier: take the sales prices of comparable properties and divide them by the annual gross rent - the result is a ratio that can be used as a multiplier.
- Direct Capitalisation: focus on the net operating income of the property, get a cap rate from the sales data of comparable properties, and adjust that rate as you see fit, depending on the property, its location, and its condition.
- Discounted Cash Flow: this is the most complex method - the net income for the property is projected over a 10-year period; then, the income and the projected sale price at the end of that time are discounted to present value.
Benefits of a Commercial Dilapidation Survey for Landlords
Ensures leaseholder compliance: your leaseholder may not always share your vision for the property, they could well mess it up or make changes that you, as the property owner, wouldn’t have made. If this happens, they need to have a legal obligation to fix it and restore the property to you in good condition.
Contractual requirements: if your lease agreement is silent as to the tenant’s maintenance obligations you might find it difficult to recover damages at the end of the lease term for failure to maintain the property.
Records: you need to have an inspection done of your property before your leaseholder moves in, otherwise, you run the risk of losing any preemptive ability to ensure that the conditions of the property are what they should be at the end of the lease term.
Advantages of a Commercial Dilapidation Survey for Tenants
Preventing needless claims: if you’re concerned that your landlord might claim too much for repairs, you can avoid this situation by hiring a chartered surveyor to conduct a dilapidation survey before you vacate the premises.
Keeping control of repairs: if you’re able to make repairs and reverse any alterations you made to the premises without incurring the cost of the landlord’s contractor (who, by the way, is likely to be more expensive than the contractor you would use)you’re keeping control of the situation.
Minimising legal costs: that said, if you and your landlord disagree over a claim that’s been made (or a claim that you think may be imminent), you’re going to incur costs to litigate the dispute unless you have someone facilitating the conversation between the two of you; hiring the surveyor who did the initial survey does just that: he or she acts as your defense in convincing your landlord that a claim may not be appropriate.
Get in Touch with Us
Our surveyors are ready to help if you want to sort out your dilapidations, our team can assist you if you are a landlord needing to establish your tenant’s dilapidation liability or a tenant who believes their Schedule of Dilapidations unfavorably represents your dilapidation liabilities. Contact us to discuss your situation and get a free, no-obligation quote.
Surveys of Commercial Property
If you’re thinking of acquiring, leasing, subletting, disposing of, or altering commercial premises in Manchester, you would be well advised to locate a surveyor skilled in the nuances of commercial building surveying – should you spot a defect in a commercial building you can use that information to negotiate an asking price for the property that’s considerably lower than what the seller originally wanted, or you can talk your way out of a bad deal altogether.
Our Manchester-based team of RICS-compliant commercial building surveyors is equipped to handle matters throughout Manchester.
Contact
Our team prioritizes client care above all else. We look forward to being in touch with you so you can instruct a surveyor in Manchester, London, Bristol, Birmingham or Cardiff. You can reach out to us easily. Just fill out our form, and we’ll get back to you with a free quote for your survey. All our surveyors are qualified as members of the Royal Institution of Chartered Surveyors (RICS) and we are one of the UK’s leading providers of building survey and valuation services:
- Accredited Professionals: Certified by organizations like RICS, CIOB, and RPSA.
- Customized Survey Reports: inspections to meet your specific requirements.
- Local Expertise: Deep understanding and specialized knowledge.
- Expert Guidance: Professional recommendations and support.
The property survey you commission will be carried out by an accredited professional. Your chartered surveyor will be a member of the Royal Institution of Chartered Surveyors (RICS) or the Chartered Institute of Building (CIOB), or will belong to some other industry-standard professional body. Rest assured; you will receive highest quality of professional service for your survey.
