A schedule of dilapidations is used by a landlord to make sure that tenants conform to the conditions of the lease particular in areas such as repair, redecoration or reinstatement of appliances or fixtures. Within a tenancy agreement you will often find clauses stipulating the standard that the property must be kept, this will often determine whether a tenant can redecorate or make any changes to the fixtures and appliances. There’s two main forms of the schedule of dilapidations widely used by landlords, interim dilapidations and terminal dilapidations.
Within a tenancy if it becomes clear a tenant isn’t keeping to the terms set out in the tenancy agreement then a landlord may issue an interim schedule of dilapidations to bring this to the attention of the tenant and rectify the situation. Furthermore, an interim schedule of dilapidations may be used to encourage the tenant to take action as it might show the fees the tenant might incur in the event the tenancy may be ended at that particular point. Issuing this kind of document is a tactical move by a landlord to ensure that any problem is rectified should the tenant not be complying with the tenancy agreement.
Each time a tenancy comes to an end if there are issues that the tenant is to incur fees to rectify, a terminal schedule of dilapidations can be used. From the tenants perspective it is easier and cheaper to take action against problems when supplied with an interim schedule than with a terminal schedule. With an interim schedule of dilapidations the tenant has the chance to rectify the problem and just pay for any replacement items and the associated labour. However, when the tenant ignores the interim schedule, the terminal schedule compiled by the landlord will probably be more costly because of the inconvenience caused for the landlord and the associated paperwork. Following a terminal schedule of dilapidations in case a tenant doesn’t act appropriately then they may face court action along with the legal fees associated this will be in addition to the price of rectifying the problems.
The schedule of dilapidations is drafted coming from a landlord’s viewpoint so it should be checked by the tenant before moving forward to take further action. To adhere to standard formatting the schedule of dilapidations should include a mention of the specific clause within the letting contract that has been breached, a description of the breach of contract, a suggested remedy provided by the landlords surveyor, an appropriate remedy for the breach in compliance with the letting contract and also the landlords view of the associated costs. The tenant should ensure that this is checked against the original tenancy agreement. When a tenant accepts that they’re in breach of the tenancy agreement by far the most sensible course of action is to rectify the problem the moment they are alerted of it. When the tenant hasn’t breached any area of the agreement then they shouldn’t and the landlord shouldn’t expect them to incur any costs.