Don’t Pay for Tenant Shortcomings: Preventing Property Dilapidation

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As every landlord will know, getting tenants to stick to their obligations is not always plain sailing. But when your property suffers damage and dilapidation as a result of obligations not being met, it could be you who is left to pick up the bill.

The moment they sign their agreement, tenants are obligated to maintain a property to a certain standard – this way, a landlord can rest easy knowing their investment is safe and, should the need arise, they won’t be challenged to find a new tenant to take on a well-maintained property.

The reality, however, is very different. There are often scenarios where tenants fail to keep to their agreement, resulting in commercial properties becoming dilapidated and damaged. When it comes time to let the property out again, landlords are then faced with repair bills and an uphill struggle.

The Woolworths Scenario

Perhaps one of the most famous examples of this is with Woolworths stores up and down the country. With such a sparkling reputation to their name, there would seemingly be nothing to worry about with Woolworths leaving stores dilapidated.

Unfortunately, when the recession claimed the high street giant in 2009 – and the state of some of their properties came to light – there was no way to recover the money which would have corrected their run-down state.

As a result, the owners of some of the properties let out to Woolworths were left out of pocket, having to either cover the cost to repair the property or sell it completely. Some remain vacant eight years later. Woolworths therefore serves as a perfect of how this scenario could happen to any landlord – it doesn’t matter about reputation or expectations.

Covering Bases

There are, however, ways to ensure that tenants stick to their obligations and properties are left in a well-maintained state. Carlton Park Management apply our expert knowledge and experience to this scenario regularly, and have ensured that our clients and their tenants are both left happy.

Our team advise landlords on dilapidation claims, ensuring that both parties can be confident in the processes being followed. This includes making considerations around dilapidation schedules, who is liable for different costs, and whether or not responsibility should be shared with sub-tenants. They also ensure obligations are being met at every stage of the relationship, leaving little room for nasty surprises.

With our help, clients can maintain a good working relationship with tenants, without finding themselves out of pocket or with a property that is dilapidated further down the line. So, if you’re worried about your tenants sticking to their obligations, or simply want to be prepared for any outcome, be sure to seek advice early on and get ahead of the curve. You’ll be glad you did!

To find out more about CAPAM’s dilapidation advice service, please feel free to get in touch – we’re always happy to help.


Image: Sydney Zentz via