What Is a Dilapidation Survey and When Do You Need One?

A dilapidation survey assesses a commercial property’s condition against the lease to identify any breaches, required repairs and associated costs.

It is typically carried out before a tenancy begins and again towards the end, often 6–12 months before expiry, to record changes in condition.

Surveys help protect tenants from liability for pre-existing issues and give landlords evidence to enforce repairs or agree financial settlements.

Responsibility for paying for the survey and any remedial works is usually set out in the lease, most commonly falling to the tenant.

Thousands of commercial properties are rented out to tenants every single year. Any breaches against the lease agreement need to be addressed and corrected before the commercial building is returned to the landlord. 

The aim of a dilapidation survey is to identify whether any breaches exist, what work will be needed to correct them and how much it might cost. 

To help you understand your responsibilities as a tenant, landlord or property owner, this article will explore what a dilapidation survey is, the reasons why you may require one, and who is responsible for payment. 

What is a Dilapidation Survey?

A dilapidation survey is a thorough assessment of a commercial property’s condition. It is usually conducted both before a tenancy begins and towards the end of the tenancy, most commonly around six to twelve months before it finishes. This allows the landlord or property owner to enforce the repairs while the tenant is still in occupation. 

The survey’s aim is to assess the building’s current condition against the lease agreement and identify any areas where repair or maintenance may be required. A survey before and after the tenancy allows all parties to keep a record of the building’s condition at the two different points in time. 

Following the survey, a document called a Schedule of Dilapidations is produced which outlines any lease agreement breaches and their estimated correction costs. Any repair or maintenance work is usually charged to the tenant for the purpose of bringing the building back in line with their lease obligations. A landlord may sometimes pursue financial settlement instead. 

When Do You Need to Commission a Dilapidation Survey?

Dilapidation surveys are beneficial for tenants, landlords and property managers for different reasons. The main situations when a dilapidation survey is particularly useful are explored below: 

• Tenants may benefit from a survey before taking on a lease as it gives them a clear record of the condition of the building before the tenancy begins. This protects them from being held responsible for existing repair issues that were already present when they moved in. 
• Landlords and property managers will benefit from a dilapidation survey towards the end of a tenancy to record its condition and compare it against the lease agreement. This gives them the evidence required to hold tenants accountable for repairs or to request financial settlements. It may also offer insights into any issues within their building that might be threatening their regulatory compliance. 
• Dilapidation surveys will help to settle potential disputes between tenants and landlords over repair responsibilities by having a third-party record of the building’s condition before and after occupancy. 

A dilapidation survey must be carried out by a qualified third-party chartered building surveyor. The landlord and the tenant may wish to each both employ their own chartered surveyor to conduct a dilapidation survey to lay out the next steps and to assist with negotiations. 

Who Pays For a Dilapidation Survey?

The person responsible for paying the fees for a dilapidation survey will be confirmed in the lease agreement. However, it is commonly the tenant’s responsibility to pay for the survey.  It will also usually be the tenant’s responsibility to pay for any repair or maintenance work to restore the property back to the conditions outlined in the lease agreement. 

Are you seeking highly experienced chartered surveyors for a commercial property? Whether you’re a tenant, landlord or building manager, our knowledgeable surveyors will conduct detailed and tailored dilapidation surveys to report on the condition of the building. We operate throughout London, Harpenden, St Albans and across the UK, so give us a call today.