11 September 2019

The beginning of the end of Dilapidations?


Landlords who let property can generally expect to receive a lump sum at the end of the lease to compensate them for disrepair. But the financial dynamics of flexible short-term letting on a WeWork style model are very different.

Landlords adopting that letting model need to include a rent element for dilapidations as well as ongoing building services into their rent calculations.

Landlords also need to consider this in more traditional style letting arrangements as tenants get use to ‘all inclusive’ rents and more limited repair obligations.

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Category: Article