A Guide To Dilapidations Agreements
http://www.lawsays.net/articles/4734/1/A-Guide-To-Dilapidations-Agreements/Page1.html
Dominic Donaldson
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Published on 03/6/2010
This a common problem confronting many tennants. Come the end of their lease, landlords often use dilapidations agreements in order to extract cash that can fund refurbishment works.
This a common problem confronting many tennants. Come the end of their lease, landlords often use dilapidations agreements in order to extract cash that can fund refurbishment works. Often the basis behind such claims is tenuous to say the least, but until recently the law meant that unscrupulous landlords were placed in a highly advantageous position.
However the guidelines in this respect have recently changed. In 2002 the government adjusted the protocol surrounding the civil procedure rules. These have effectively shifted the balance of power from landlord to tennants in cases of dispute surrounding dilapidations.
Under the new guidelines landlords must take proper measures to prove a loss and that they intend to carry out the work as specified in the schedule of dilapidations. If he or she is not able to demonstrate an intent to carry out the work it becomes highly difficult to prove that the value of the property has been decreased and therefore more difficult to extract funds from departing tennants.
It is a great breakthrough for tennants who now have an extra layer of protection against unscrupulous operators in the rental market. For owners of rental properties, however, it represents another layer of administration and finance that they are forced to satisfy before they can have work completed. In a difficult market economy this represents another serious difficulty for landlords.
Canny tennants can therefore defend themselves against dilapidations claims by using this loss of value defence, but only if they are clued up on the exact provisions of the law. Unfortunately many do not understand just what their rights are in these circumstances and do not receive adequate advice or guidance in their dealings.
The important thing whenever undertaking a new rental contract is to take you time and draw in advice from as many different sources as possible. As a starting point there are articles such as this freely available on the internet which can provide a good starting point. However to get real value it is important to draw upon the services of real experts in the sector and this is where a good rental consultant can really prove its value. They will see opportunities that others might miss producing the best possible service to you the tennant.
Critics of the new guidelines surrounding dilapidations say that in a market that is difficult enough landlords will have to shoulder yet more burdens. However with many now needing to add refurbishments to maintain a property's competitiveness the tennants seem like ripe targets for footing the bill.
However the guidelines in this respect have recently changed. In 2002 the government adjusted the protocol surrounding the civil procedure rules. These have effectively shifted the balance of power from landlord to tennants in cases of dispute surrounding dilapidations.
Under the new guidelines landlords must take proper measures to prove a loss and that they intend to carry out the work as specified in the schedule of dilapidations. If he or she is not able to demonstrate an intent to carry out the work it becomes highly difficult to prove that the value of the property has been decreased and therefore more difficult to extract funds from departing tennants.
It is a great breakthrough for tennants who now have an extra layer of protection against unscrupulous operators in the rental market. For owners of rental properties, however, it represents another layer of administration and finance that they are forced to satisfy before they can have work completed. In a difficult market economy this represents another serious difficulty for landlords.
Canny tennants can therefore defend themselves against dilapidations claims by using this loss of value defence, but only if they are clued up on the exact provisions of the law. Unfortunately many do not understand just what their rights are in these circumstances and do not receive adequate advice or guidance in their dealings.
The important thing whenever undertaking a new rental contract is to take you time and draw in advice from as many different sources as possible. As a starting point there are articles such as this freely available on the internet which can provide a good starting point. However to get real value it is important to draw upon the services of real experts in the sector and this is where a good rental consultant can really prove its value. They will see opportunities that others might miss producing the best possible service to you the tennant.
Critics of the new guidelines surrounding dilapidations say that in a market that is difficult enough landlords will have to shoulder yet more burdens. However with many now needing to add refurbishments to maintain a property's competitiveness the tennants seem like ripe targets for footing the bill.