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Schedules of dilapidations
When a commercial lease terminates the landlord may require extensive work from the tenant to make good damage and disrepair or to put the premises back in their original state. If the tenant does not carry out this work, they maybe required to pay the cost of having it done.
At lease termination a tenant is in a better position with a schedule of condition appended to the lease to establish the condition at the start of the lease.
During the lease
Most commercial leases require the tenant to put and keep the property in good repair even if the premises were in a poor condition when the lease started. Understanding the defects or future maintenance requirement will reduce the tenants' responsibility.
Licence for alterations
The effect of tenant alteration on the tenants’ position at lease end depends on the terms of the lease and the licences agreed with the landlord for the alterations.
The cost of the Landlords claim may be inflated or the claim may include items which are not valid items of disrepair. It is important to ensure the lease documentation properly reflects the legal obligations of the tenant and landlord.