It is important for tenants to make financial provisions for reinstatement works throughout the lease to avoid a financial shock when the lease ends.

Most tenants have the right to renew their business lease when it ends, but that decision is only one of many that should be considered. Here are six things to consider if your lease is due to expire.

Many landlords weaken their position by making avoidable mistakes, from overestimating claims to failing to prepare evidence.

Commercial property leases can be complex and that can result in commercial tenants facing expensive surprises at the end of their lease when they are issued with a bill for dilpaidations. Understanding common dilapidation issues and how to avoid them is crucial for tenants looking to save money, time, and stress when they move out of a property.

Most dilapidations disputes are due to disagreements over interpretation of the leases clauses, the condition of the property, the costs of the remedial work, or procedural failures. However, dilapidations are also sometimes used tactically by landlords to gain leverage in lease renewal or exit negotiations.

The current practices of dilapidations are inherently wasteful, due to the lease cycles of Cat A and Cat B fit-outs, but a greener future is possible.