1. Before lease expiry: the landlord prepares

12-18 months before expiry:

A well-prepared landlord will:

  • Review the lease and any Schedules of Condition
  • Instruct a building surveyor
  • Arrange a property inspection
  • Begin preparing the schedule of dilapidations

Why so early?

Starting early allows proper preparation without time pressure. A rushed schedule contains errors. Early engagement also allows the landlord to serve a “terminal schedule” before or at lease expiry, giving the tenant opportunity to do works before they leave.

The tenant’s perspective:

As a tenant, you should be considering dilapidations 12-18 months out too:

  • Review your own records and the lease
  • Consider instructing your own surveyor for advice
  • Assess what works you might do before leaving
  • Begin exit planning

2. Lease expiry: the clock starts

When the lease ends:

The landlord regains possession and can inspect without needing tenant permission.

The tenant has vacated (usually), having done whatever works they chose to do during the term.

The Dilapidations Protocol recommends the landlord serve their schedule within 56 days of lease expiry. This isn’t a legal deadline, but delay weakens the landlord’s position.

3. Schedule of dilapidations is served

What it contains:

  • Clause-by-clause analysis of lease breaches
  • Description of each breach
  • Remedy required for each breach
  • Cost of those remedies

For the landlord:

This is your statement of claim. It should be comprehensive, accurate, and defensible. Every item should be a genuine breach, properly costed.

For the tenant:

Receiving the schedule starts your response clock. The Protocol allows 56 days to respond. Don’t panic, but don’t delay either.

4. Tenant reviews and responds

56 days from receipt (Protocol timeframe):

The tenant should:

  • Instruct their own building surveyor if they haven’t already
  • Review the schedule against the lease
  • Inspect the property (where possible)
  • Prepare a response (the “Scott Schedule” or counter-schedule)

The response identifies:

  • Items accepted
  • Items rejected (with reasons)
  • Items where quantum is disputed
  • The tenant’s position on each claim

Common defences include:

  • Not a lease breach (item not covered by tenant’s obligations)
  • Pre-existing condition (Schedule of Condition defence)
  • Fair wear and tear (where applicable)
  • Supersession (landlord’s plans make repairs pointless)
  • Section 18 cap (diminution in value less than claimed costs)
  • Inflated costs

5. Negotiation phase

Typically 2-6 months after response:

Both parties’ surveyors negotiate:

  • Without prejudice discussions
  • Scott Schedule exchanges with updated positions
  • Narrowing areas of disagreement
  • Movement towards settlement

Most claims settle through negotiation. The Protocol encourages resolution without litigation. Surveyors experienced in dilapidations know the likely outcome and work toward reasonable settlement.

If parties are far apart:

Consider:

  • Further without prejudice meetings
  • Sharing of evidence (diminution valuations, plans, costings)
  • Involving solicitors to increase formality
  • ADR (mediation, expert determination)

6. Settlement or escalation

Settlement:

Most claims settle between 3-12 months after lease expiry. Settlement involves:

  • Agreed compensation figure
  • Formal settlement agreement
  • Payment

The settlement figure is typically somewhere between the landlord’s claim and the tenant’s response, though the range varies enormously depending on the strength of each position.

If no settlement:

Matters may escalate to:

  • Formal pre-action correspondence
  • Mediation
  • Expert determination (if lease provides for it)
  • Court proceedings

Court proceedings:

Litigation is expensive and uncertain. Even if you’re confident in your position, court costs, management time, and litigation risk make settlement attractive for both parties.

However, if the gap remains unbridgeable, court proceedings are the ultimate resolution.

7. Typical timeline summary

Stage Timing Duration
Landlord preparation 12-18 months before expiry Ongoing
Lease expiry Day 0 —
Schedule served Within 56 days —
Tenant response 56 days from service —
Negotiation 2-6 months Varies
Settlement 3-12 months post-expiry —
If litigation 12-24 months Longer

Real timelines vary. Simple claims settle quickly. Complex claims, hostile parties, or unreasonable positions extend timelines significantly.

8. Factors affecting timeline

Things that speed up settlement:

  • Professional, prepared surveyors on both sides
  • Reasonable expectations
  • Clear lease terms
  • Good documentation (Schedules of Condition, records)
  • Willingness to negotiate in good faith
  • Similar views on liability and quantum

Things that slow down settlement:

  • Unrealistic expectations (from either party)
  • Poor preparation or documentation
  • Unclear lease terms requiring interpretation
  • Significant supersession or Section 18 arguments
  • Personal animosity between parties
  • Parties treating negotiation as confrontation

9. Practical advice for each party

For landlords:

  • Start early; rushed claims are weak claims
  • Be realistic about what you’ll recover
  • Document everything
  • Consider your actual plans for the property (supersession)
  • Trust your surveyor’s advice on defensible positions

For tenants:

  • Don’t ignore claims; engage properly
  • Instruct your own surveyor early
  • Gather your evidence (lease, Schedule of Condition, records)
  • Understand your defences
  • Budget for some payment; most claims have some validity

10. The cost of dilapidations advice

Both parties incur professional fees:

Surveyor fees — For preparing or responding to schedules, negotiation, settlement. Typically a percentage of the claim value or fixed/hourly fees.

Legal fees — If solicitors are involved (often only for complex matters or disputes heading toward litigation).

Expert fees — Diminution valuers, specialist experts if needed.

These costs are usually each party’s own costs (you pay your surveyor, they pay theirs). Litigation can change this if costs are awarded.

Key Takeaways

  • Start early — 12-18 months before lease expiry for landlords
  • 56 days — Protocol timeframe for serving schedule and for tenant response
  • Most claims settle in 3-12 months — Through professional negotiation
  • Litigation is rare — Most matters resolve before court (with the right advice)
  • Professional advice matters — Experienced surveyors achieve better outcomes
  • Reasonableness pays — Unrealistic positions extend timelines and increase costs. Consider your big picture.

Need Help?

Whether you’re a landlord preparing a claim or a tenant responding to one, we can help. We provide professional dilapidations advice throughout the process, from early preparation through to settlement.

Get in Touch

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