Top 5 Mistakes Commercial Tenants Make When Facing a Dilapidations Claim

Your business has grown. You are expanding into a new space, excited about fresh opportunities, new clients, and that first day in a bigger office. You are also juggling the financial pressure of deposits, fit-out costs, and moving logistics.

Then, through the letterbox, comes a thick envelope. Inside is a document full of technical jargon, long lists of defects, and an alarming figure at the bottom. Your landlords surveyor has issued a dilapidations claim — and the sum looks eye-watering.

If this sounds familiar, you are not alone. It happens to more tenants than you might think. But it does not have to end badly. Understanding where most tenants go wrong is the first step to avoiding the same expensive lessons.

Not Understanding the Lease

Many tenants sign their lease without fully understanding what they are agreeing to. They assume there will be a fair wear and tear clause or that repairs only mean putting things back the way they were. In reality, most commercial leases in the UK contain no fair wear and tear provision at all.

This means the tenants obligation is to keep the property in repair — sometimes even to a higher standard than when they first moved in. That can allow landlords to claim for repairs that feel excessive or unnecessary.

The solution is preparation. Before signing a lease, seek professional advice from both your solicitor and a building surveyor who understands dilapidations. Knowing what your obligations will be from the start helps you avoid nasty surprises at the end.

 

Having No Strategy for Dilapidations

Many businesses reach lease end without any plan for dealing with dilapidations. They hope the issue will not arise and then scramble to react when it does.

This ostrich approach” often leads to rushed decisions and inflated costs. A better way is to commission your own dilapidations advice well before the lease expires. Six months is the minimum, but for longer leases or large properties, start preparing up to three years ahead.

By understanding the lease requirements early, you can budget, prioritise, and complete works in a structured and cost-effective way. A proactive strategy turns a potential crisis into a managed process.

 

Panicking and Completing All the Landlords Works

When the landlords schedule of dilapidations arrives, some tenants treat it like gospel. They panic, instruct a builder, and start refurbishing everything listed, often spending far more than necessary.

This approach rarely works in the tenants favour. Builders are incentivised to carry out more work, not less, and may not distinguish between essential repairs and aesthetic improvements.

A dilapidations surveyor, on the other hand, works for you. Their role is to identify which works are truly necessary and which can be negotiated away. They understand the case law and valuation principles behind dilapidations, which means their advice is objective and based on genuine liability, not assumption.

 

Not Allowing Enough Time to Complete Works

Another frequent problem is underestimating how long dilapidations works actually take. Tenants assume they can sort everything in the last few weeks of the lease, but this almost always leads to problems.

Once the lease expires, tenants usually lose the legal right to access the property. Landlords are under no obligation to let them back in to finish the job — and often prefer not to. This can result in the landlord carrying out the works themselves and adding their costs to the claim.

Working with a surveyor early allows you to plan a realistic timetable for inspections, quotes, and completion. It avoids last-minute rushes and helps keep control of costs.

 

Trying to Negotiate a Claim Without Professional Help

Many business owners pride themselves on being good negotiators. It is part of running a successful company. But when it comes to dilapidations, common sense and negotiation skills alone are rarely enough.

Dilapidations is a complex area of law involving valuation principles, case law, and statute. What seems logical to a business owner might not align with the legal framework that determines liability.

Specialist advice almost always saves money. A surveyor can spot errors, challenge overstated items, and ensure the claim reflects only genuine loss. They also apply legal caps such as Section 18(1) of the Landlord and Tenant Act 1927, which limits a landlords recovery to the amount by which the propertys value has been reduced by the disrepair.

Trying to go it alone often leads to overpayment. Bringing in a professional early usually costs less than the amount they can save.

 

Not Negotiating Lease Terms from the Start

There is one additional mistake worth mentioning. It happens before a tenant even moves in. Many businesses fail to negotiate their repairing obligations properly at the start of the lease.

By taking advice from a dilapidations specialist during lease negotiations, tenants can often tweak clauses in their favour. This can include limiting liability through a Schedule of Condition or clarifying that certain obligations will not apply. A small investment before signing the lease can save a fortune at the end of it.

 

The Bottom Line

Most dilapidations problems come down to lack of preparation. Tenants who understand their lease, plan early, and seek professional advice are rarely caught out. Those who wait until the end of the lease, rely on guesswork, or try to handle negotiations alone tend to pay the price.

The good news is that these mistakes are easy to avoid with the right guidance.

If you are approaching the end of your lease, or are about to sign a new one, contact Harrison Clarke Chartered Building Surveyors. Our specialist team can help you understand your obligations, prepare a strategy, and protect your business from unnecessary costs.

For more expert advice on surveying and property matters, check out our range of informative videos on our website or YouTube channel. Harrison Clarke Chartered Surveyors is here to guide you every step of the way!

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Harrison Clarke Team - Tim

About the author

Tim Clarke,

BSc (Hons) MSc MBA MRICS CMgr FCMI

Managing Director

Tim’s surveying career began in 2006 and he became a Chartered Building Surveyor in 2014, founding Harrison Clarke Chartered Surveyors in July 2017, drawing on over a decade of experience across both public and private sectors. Tim has held numerous key roles at companies such as University of Cambridge, Rund Partnership, Goadsby, and CBRE. 

With degrees in building surveying, construction project management, and business administration, Tim is also recognised as a Chartered Manager.