Commercial and Office Dilapidations
If you’re on the move you will have to restore your existing workspace in accordance with your lease agreement. Commercial and office dilapidations are often wrongly considered by tenants to be insignificant in comparison with rent, rates and service charges when they are seeking new premises. However, the liability to repair can have serious financial implications and therefore the tenant must seek the advice of a Chartered Surveyor on opportunities to avoid, limit or mitigate dilapidations before entering into a lease, or when a schedule of dilapidations has been served upon them.
If you are a tenant leasing a premises, whether it be a commercial property or office space, at some point you may be required to fund restoration works at the request of the landlord. These works are called dilapidations, and landlords are able to schedule them either during or, more commonly, at the end of a tenant’s property lease.
The amount of restoration work tenants are required to do is variable, depending on the landlord’s preference. For example, many landlords simply request that the premises is left in “good and substantial repair and condition.” This means that tenants must leave it in the same state of repair as when the lease was approved. Other landlords may request that the premises in better condition than when the lease was granted. Tenants are liable to do this when the lease states they are to ‘put’ the premises in good repair, as opposed to ‘keep’.
How Rap Interiors Can Help With Your Commercial or Office Dilap
Rap Interiors are experts in helping clients “re-use” materials and items from the office space you are leaving (i.e. those that needs to be removed in line with commercial dilapidation or office dilapidation clauses in your tenancy agreements) and utilise them within the new office space plan, helping to reduce costs for the new office fit out. Our value-add is always to maximise your budget and create a fantastic new workspace refurbishment.
We provide a full range of services for commercial and office dilaps, including the following:
- Refurbishment Works – In order to restore a premises to its original condition or as outlined within the dilapidation clause within your lease agreement, a considerable amount of refurbishment work may be required. With our expertise in commercial and office refurbishments, we can successfully reinstate the premises to its original condition.
- Fit out works – On a larger scale, tenants may be faced with fit out works to ensure that the premises is a functional workspace for prospective employees. a CAT A fit out (the works that take place to ensure the workspace meets certain standards and regulations in order for the prospective tenants to move in) will be needed if this is the case, as this covers services such as facilities, flooring, ceiling works, health & safety systems and overall decorations.
- Office relocation – With the help of our dedicated team, Rap can integrate the equipment removed during the dilapidation into a new commercial property or office space design and fit out. Any removals of this kind are subject to clauses in your tenancy agreement in relation to the dilapidation, but Rap will help to ensure a smooth transition takes place.
What Happens if You Don’t Fulfil the Dilapidation Obligations Outlined?
Failure to co-operate with the contractual agreement in relation to your office or commercial dilapidation means that landlords can claim damages for any loss suffered, including:
- Cost of work supervision
- Loss of rent and service charges during works
- Producing and negotiating the schedule of repairs
As previously mentioned, prior to entering into a lease, it is advised that tenants seek advice from a chartered surveyor. A surveyor will give guidance on how to avoid, limit or mitigate dilapidations before the agreement is in place.
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