Schedule of Dilapidations

A schedule of dilapidations is a legal document that outlines the disrepair or breaches of lease repair covenants relating to a commercial property. Once a schedule is served it sets out a record of the tenant’s obligations to remedy any disrepair required before vacating the property.

Interim Schedule of Dilapidations:
Prepared during the lease term, this schedule identifies breaches that need remedying while the lease is still in effect. It does not relate to yield-up obligations.

Terminal Schedule of Dilapidations:
Created towards the end of the lease, this schedule lists all necessary repairs and maintenance that the tenant must address before vacating the property.

Final Schedule of Dilapidations:
Prepared after the tenant has vacated, this schedule details any remaining breaches and the required remedial actions.

For landlords, schedules of dilapidations are essential for:
– Ensuring tenants comply with lease obligations.
– Assessing the condition of the property during and after the lease.
– Recovering costs for repairs and restoration.

Tenants benefit from understanding their obligations and planning for:

• Budgeting for repairs and maintenance
• Addressing breaches promptly to avoid disputes
• Negotiating with the landlord regarding the scope of works