Now, more than ever, Scottish landlords will need to be on the ball with their policy on dilapidations. Tenants are in a better position for negotiating and, after two recent Scottish cases, landlords are becoming frequently caught out.
What are dilapidations?
At the end of a lease the tenant may be contractually responsible for repairs and maintenance work on the property. These repairs are known as dilapidations and can either be carried out by the tenant themselves, by the landlord or by a third party at the tenant’s expense.
A few years ago when the property market wasn’t quite as healthy, many landlords would use dilapidations money to help them attract new tenants. In many cases they’d offer a new tenant a reduced rent while they carried out repairs / improvements. This allowed them to keep the old tenant’s dilapidations money for themselves.
Inevitably this has become a common area for dispute; landlords and tenants often have different interpretations of what constitutes a ‘necessary’ repair and whose responsibility it is. Especially in the case of long term leases, where tenants can find themselves facing some extensive repairs.
The situation
Landlords are increasingly finding themselves unable to work the situation like they used to and get the best of both worlds. These days tenants often have the upper hand and are receiving fairer treatment.
In some cases tenants can argue for the landlord’s actual loss for breach of contractual repairs to be calculated. This is commonly known as seeking an alternative measure of loss.
Most cases state the proposition that landlords can only charge tenants for repairs they can prove they actually intend to carry out.
Long story short
If you’re a landlord, make sure the contract is clear in its definitions of dilapidations. If you’re a tenant, make sure you understand your obligations. It’ll save both of you a lot of time and hassle in the future.
If you have any questions about dilapidations or any other part of a lease or tenancy agreement, get in touch with Johnson Legal today.