Dilapidations and Fit Outs – What Tenants Need to Know
If you’re coming to the end of a commercial lease or just starting one, dilapidations could impact your fit out plans. Tenants are often surprised to learn they may be responsible for reinstating or repairing elements of a space, even if they didn’t install them.
Here’s what every tenant needs to understand before they start fitting out (or moving out).
What Are Dilapidations?
Put simply, dilapidations are repair and reinstatement obligations set out in a lease. They usually relate to:
- Returning the space to CAT A condition
- Removing alterations (like partitions, kitchens, cabling)
- Repairing damage caused by occupation or works
Why Does It Matter for Fit Outs?
If you invest in a CAT B fit out without understanding your lease obligations, you may face unexpected costs at the end of the term especially if you’re required to strip it all out.
How to Protect Yourself
- Get a full lease review before starting design
- Negotiate a licence to alter with clearly defined reinstatement clauses
- Work with a fit out company that understands dilapidation risk
What About Moving Out?
We also help tenants handle dilapidation works when exiting a space removing and making good efficiently, and helping avoid unnecessary landlord charges.
Plan Ahead, Avoid Surprises
If you’re planning a fit out in a leased space, we’ll help you understand what’s allowed, what’s not, and how to stay compliant without compromising your vision.