Should a Tenant Do The Works? – A Tactical Consideration
- The word ‘Consideration’ is key, and Cushman & Wakefield will provide specific tactical advice in this regard.
- It is sometimes useful to have full costed schedules of works in order to threaten, as a tactic, to do the works in lieu of a cash settlement. This will also enable an accurate representation of the true cost of works to be used in negotiations. We may well recommend a specification is prepared and tendered.
- In most circumstances a landlord will want to negotiate a cash settlement. Threatening to do the works is tactical, yet will only work if there is a possibility of vacating early in order to give enough time to do them before the end of the term.
- In some circumstances, we may recommend works are undertaken to parts of the building, such as the external areas, and settle financially on the remainder.
- The cost of undertaking works may be less expensive than leaving the landlord to do them after the end of the term. A landlord will be mindful to ensure the works reflect the market requirements for a new letting as far as possible, and replacement may be considered instead of repair.
- Whilst the landlord must prove an item is in disrepair, this will be easier if the tenant has clearly left it in poor condition. Furthermore, once a landlord has carried out strip out works, a tenant may find it difficult to provide counter evidence.
- In some circumstances, cherry picking items of works to be carried out by a tenant during the term may be appropriate if these will help mitigate the cost of dilapidations. Eg. Roof repairs and mechanical & electrical maintenance works.