For tenants and landlords near a lease end
Dilapidations Report: What a Surveyor Checks and Costs
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 4 min read
The short answer
A dilapidations report records the condition of a commercial property against the repair, reinstatement and redecoration covenants in its lease. Each breach becomes a line with the clause, the defect, the remedy and usually a cost.
- It starts with the lease, the licences and any schedule of condition.
- The surveyor inspects every area and records each breach with photographs.
- Interim, terminal and condition reports serve different purposes.
- Who pays depends on the lease; many make the tenant pay the landlord's costs.
A dilapidations report records the condition of a commercial property against the repair, reinstatement and redecoration covenants in the lease. It turns each breach into a line the landlord can claim for. Whether you are the landlord or the tenant, the report is where the final figure is won or lost.
A good report is specific. It quotes the clause, describes the defect, says what will fix it and prices that fix. A weak one lists "make good throughout" and adds a round number.
This guide explains what goes into a report, how the survey is done, the different types and what drives the cost. It is written by a dilapidations surveyor and builder in one team. Our in-house RICS-qualified quantity surveyor prices each line, and our crews can do the works. Holding a report now? Free schedule review.
What a dilapidations report contains
RICS guidance lists what a schedule of dilapidations should normally contain. A full report usually adds photographs, a summary and the surveyor's endorsement.
| Part | What it shows |
|---|---|
| Documents relied on | The lease, licences, schedule of condition, notices |
| Covenants | The repair, reinstatement and redecoration clauses, often quoted |
| Itemised schedule | Numbered lines: clause, breach, remedy, cost |
| Photographs | Each breach, referenced to the line |
| Cost summary | Totals by category, often with fees and VAT position |
| Endorsement | The surveyor's confirmation the works are needed and the costs reasonable |
The Dilapidations Protocol gives a standard form for the schedule itself. Its columns are the item number, the lease clause, the breach, the works and the landlord's costing. Sent electronically, it lets the tenant add its comments in the same document.
How a dilapidation survey is carried out
The survey is the inspection behind the report. It follows the same steps whichever side commissions it.
- Read the documents. The lease, every licence for alterations and any schedule of condition.
- Ask about intentions. For a landlord, what will happen to the building next; RICS asks for this in writing.
- Inspect every area. Roof, facade, floors, ceilings, walls, joinery and building services.
- Record each breach. A note and a photograph, referenced to a floor plan.
- Decide the remedy. Repair where repair will do, not replacement.
- Price the works. From invoices, tenders, price books or a contractor's price.
Access matters. An empty floor is quick to survey. An occupied one, or one with ceilings and floors to lift, takes longer.
Interim, terminal and condition reports
Three kinds of report come up most often. They look alike but do different jobs.
| Report | When | For |
|---|---|---|
| Schedule of condition | Before the lease starts | Records the state on day one, to limit later claims |
| Interim schedule | During the lease | Gets repairs done while the tenant is in |
| Terminal schedule | At or near the end | The basis of the landlord's damages claim |
A tenant's response is a fourth document. It answers the landlord's schedule line by line, usually as a Scott schedule. A tenant can also commission its own report before the lease ends, to plan the works and set a realistic budget. Our guide to the dilapidations protocol explains where each fits in the timetable.
What a dilapidation survey costs and who pays
We do not publish a fee, because it depends on the job. What moves the cost is predictable.
- Size and layout. More floors and rooms mean more inspection and more lines.
- Documents. A long lease with many licences takes longer to read.
- Access. Occupied space or hidden voids add time.
- Number of reports. Condition, interim and terminal schedules are separate jobs.
- Negotiation. Meetings and revised responses add rounds of work.
Who pays depends on the lease. Each side usually pays its own surveyor. Many leases let the landlord recover its costs of preparing and serving a schedule from the tenant. RICS notes those fees are typically considered on the schedule's summary page.
Great company to work with as always. Super flexible at dealing with evolving requirements and fast deployment and execution.
From the report to a priced claim
A report becomes a claim when it is costed and sent with a quantified demand. The tenant then answers it line by line.
This is where many claims shrink. A surveyor's cost estimate is not the same as a builder's price. The strongest answer to a high rate is a lower rate someone will actually build for.
Our in-house RICS-qualified quantity surveyor prices each line from current builders' rates. Because our own crews do the work, the figure is one we will build for. We then negotiate it with the other side's surveyor, as part of our dilapidations claim negotiation for tenants.
One team, one point of contact: the report, the price, the negotiation and, if it costs less, the works. Free schedule review before you agree any figure.
Before you rely on a dilapidations report
- Check it quotes the right lease clauses.
- Check each breach has a photograph and a location.
- Check the remedy is repair, not upgrade.
- Check each cost against a builder's price.
- Check the landlord's intentions are recorded.
- Check who pays the surveyor's fees under the lease.
