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Commercial property landlords losing thousands on repair bills, warns GJS Dillon

June 2022

Commercial property landlords are losing out on thousands of pounds in repair bills, according to Worcestershire commercial property consultancy GJS Dillon.

Mike Sutton, Director of Building Surveying Services at GJS Dillon, says that many landlords are failing to get their tenants to undertake the works in accordance with their lease obligations, or to pay in full in lieu of undertaking the works at the end of a lease. This adversely affects the landlords’ ability to re-let their buildings quickly and cost-effectively. 

‘We find that some landlords, especially those who are new to owning commercial buildings, do not know that the tenant is responsible, under the terms of a full repairing lease, for carrying out or commissioning all dilapidations works prior to the end of the lease. Or they assume the tenants will fulfil their obligations without landlords’ intervention’ says Mr Sutton ‘Broadly speaking this constitutes reinstatement of tenant’s alterations, repair and redecoration of the property’

‘We recently saved a landlord more than £15,000 on a repair bill at the end of a lease by assessing the cost of the dilapidations and demonstrating the tenant’s responsibility to pay’ he adds.

According to Mr Sutton, using a building surveyor for all dilapidations matters can save landlords time and money. He says ‘We ensure that everything we do for a landlord follows the Dilapidations Protocol, so that if we cannot agree a settlement figure in lieu of the tenants undertaking the works themselves, then we can move swiftly to resolving the dispute legally.’ 

‘Getting the dilapidations process right helps minimises landlords’ repair bills and ensures properties are in a condition to be quickly re-let, thereby minimising loss in future rental income and protecting the return on property investment’ concludes Mr Sutton

GJS Dillon provides advice on Schedules of Dilapidation and Schedules of Condition and advises landlords and tenants on all aspects of ending, renewing and starting new leases. 

For further information about GJS Dillon’s Building Surveying services contact Mike Sutton, Director of Building Surveying Services, at mikesutton@gjsdillon.co.uk or call 01905 676169

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