How to Handle Commercial Property Investment Dilapidations

commercial investmentHaving a commercial property investment for lease may be good business but it doesn’t come with its own headaches. Dilapidations for one are a very common issue between tenants and landlords.

It is a dispute that arises when the property has come to a state of disrepair and the party or parties that are required to perform the repairs and maintenance failed to do so. In this case the conflicting parties would wish to impose monetary damages, specific performance or a combination of both to the party at fault. As the landlord, owner or investor, what is there for you to do? We’ve got some tips.

  • Be professional about communication. – There will always be time for dialogue and conversation. See to it that you take the discussion professionally. No shouting, bantering and foul words should be involved. Point out your side and hear the other party out as well.
  • Find a counsel, advisor or expert to guide you. – If you are not versed or skilled in doing matters involving dilapidations or even confused about it then you might as well find somebody qualified who can help you from start to finish.
  • Find all your important papers. – Be sure that you also have with you all your important documents which includes the lease contracts, memorandums, notices, agreements and any other written papers that will aid and guide you in determining who bears how much.
  • Have the property examined by a professional. – To determine the exact damage caused by the failure to maintain the upkeep of the asset, calling in a surveyor to make a complete and thorough assessment will be your best bet. They will hand in a carefully studied and expert given report as to the monetary amount of damages and its impact on the property and other adjacent or joint assets.
  • Know your legal rights and do your own research. – It is also highly advisable to perform your own research. This gives you a basic idea if not more about what you are going to deal with. Even if you have professionals by your side it is still best to educate yourself. It gives you a good head start.
  • Ensure complete documentation. – When you settle and agree about the output of the dilapidation case on your commercial property investment, always put it into writing. Complete documentation will free all parties from any possible headaches in the near future.

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