Schedules of Dilapidations

The term “dilapidations” relates to breaches of covenants documented in a Deed of Lease and is specifically concerned with wants of reinstatement, repair and redecoration of the leased premises. Schedules of Dilapidation (sometimes referred to as Schedules of Reinstatement) document the breaches to these covenants as well as the remedy to the breach and associated costs.

Tenant’s can generally expect to be served with the following where they are in breach of the covenants to their lease:

  • Terminal Schedule of Dilapidations: can be served on the Tenant by the Landlord no sooner than 6 months prior to lease expiry.
  • Interim Schedules of Dilapidations: can be served at any time during the lease term if there has been a breach to the covenants and failure to repair will result in a loss to the Landlord or further damage to the Landlord’s property.

Tenant’s wanting to understand their reinstatement obligations prior to being served with a Terminal Schedule can appoint a Building Surveyor to prepare a Schedule of Dilapidations that will identify any breaches in the same manner as a schedule being served by the Landlord. It is often more cost effective to complete the reinstatement work rather than agreeing a financial settlement. Key to retaining this option however, is gaining a full understanding of your obligations and allowing sufficient time to complete the works prior to lease expiry.

Dilapidations can be complex. A proactive approach from the Landlord and Tenant is the best way to manage the process and both parties should be prepared to enter into discussion on the matter.

Copper Seed undertake dilapidations work for Landlords and Tenants in accordance with the RICS Schedules of Reinstatement (NZ) Guidance Note. Please contact Victoria through the Contact page to discuss your requirements or to find out more about the dilapidations process.