Dilapidations refer to the legal obligation on a commercial tenant to restore a leased property to its original condition at the end of a lease term. In Ireland, this requirement is typically set out in repair and reinstatement clauses within the lease agreement. Failing to address dilapidations properly can result in significant financial claims from landlords — often running into tens of thousands of euro for a standard office space.

What does dilapidations mean in Irish commercial property?

In Irish commercial property, dilapidations describe the breaches of a tenant’s lease covenants relating to the condition of a premises. These covenants typically cover three areas: repair (maintaining the property in the condition specified in the lease), reinstatement (removing any alterations the tenant has made and restoring the space to its original layout), and decoration (repainting and refinishing to an acceptable standard). The term encompasses both the physical works required and the legal claim a landlord can make against a tenant for failing to carry out those works. In Ireland, dilapidations are governed by the terms of the individual lease rather than by a single statute, which means obligations vary from lease to lease. A landlord’s claim is typically quantified by a building surveyor who inspects the premises against the lease terms and the original condition — making early assessment essential for tenants approaching lease end.

What are your legal obligations at the end of a commercial lease?

Irish commercial leases are primarily governed by common law and the specific terms agreed between landlord and tenant. Unlike residential tenancies, commercial leases in Ireland are not covered by the Residential Tenancies Acts and offer fewer statutory protections for tenants. Your obligations at lease end are dictated almost entirely by what your lease says.

Most commercial leases in Ireland include several key clauses relevant to dilapidations:

• Repair covenant: An obligation to keep (and yield up) the premises in good and substantial repair. The extent of this obligation depends on the wording — a full repairing lease places all maintenance responsibility on the tenant, while an internal repairing lease limits it to the interior.
• Reinstatement clause: A requirement to remove any alterations made during the lease term and restore the premises to its original configuration. This applies even where the landlord gave a licence for those alterations.
• Decoration clause: Typically requires internal redecoration in the final year of the lease, often specifying colours approved by the landlord.
• Yielding up: The obligation to hand back the premises in the condition required by the lease, with all tenant fixtures and fittings removed.

It is worth noting that under Deasy’s Act 1860, the relationship between landlord and tenant in Ireland is founded on contract rather than tenure. This means the lease document is the primary reference for all obligations. If your lease includes a full repairing and insuring (FRI) covenant — as most modern Irish commercial leases do — you are responsible for every aspect of the property’s condition at handback.

What work is typically required for dilapidations?

The scope of dilapidation works depends on what alterations you made during the lease, the original condition of the space, and the specific covenants in your lease. However, most dilapidation projects in Dublin offices involve some or all of the following:

• Removal of partitions and internal walls: Any stud walls, glass partitions, or meeting room pods installed during the tenancy typically need to be taken out and the floor, ceiling, and wall surfaces made good.
• Floor reinstatement: Removing raised access floor tiles if they were tenant-installed, repairing or replacing carpet tiles, and making good any damaged areas to the original subfloor or floor finish.
• Ceiling works: Replacing damaged ceiling tiles, reinstating any areas where the suspended ceiling grid was altered, and removing any additional lighting or services installed above ceiling level.
• Redecoration: Repainting all walls, doors, and frames — usually in neutral colours. Most leases specify at least two coats to an acceptable standard.
• Removal of tenant branding: Taking down signage, vinyl graphics, feature walls, and any branded elements both internally and externally.
• Mechanical and electrical reinstatement: Removing additional air conditioning units, supplementary cooling, data cabling, AV equipment, and any modifications to the base-build M&E systems. Capping off redundant services and reinstating the original distribution.
• Removal of tenant fixtures and fittings: Kitchen and tea-point fit-outs, reception desks, built-in storage, and any bespoke joinery. All holes, fixings, and surface damage must be made good after removal.
• External works: Repairing any damage to common areas caused by the tenant’s occupation, including loading bay areas, car park markings, or external signage locations.

For a typical 500 m² Dublin office that has undergone a fit-out during the lease term, dilapidation works usually take between four and eight weeks depending on complexity. We often see tenants underestimate the extent of reinstatement required — particularly around M&E works, which can account for 30–40% of the total dilapidation cost.

How much do dilapidations cost in Ireland?

Dilapidation costs vary significantly depending on the extent of alteration works carried out during the tenancy, the size of the premises, and the specific lease requirements. Based on projects we have managed across Dublin and the wider Leinster region, the following table provides indicative cost ranges for 2025/2026:

To put those figures in context: a moderate reinstatement of a 400 m² office in Dublin could cost between €40,000 and €100,000. A full strip-out of a 1,000 m² space with extensive fit-out works could reach €250,000–€500,000. These figures do not include professional fees for surveying, project management, or any VAT liability.

Costs have risen noticeably over the past three years. Construction tender prices in Ireland increased by approximately 28% between 2021 and 2024 according to the Society of Chartered Surveyors Ireland (SCSI), and subcontractor availability — particularly for mechanical and electrical trades — continues to put upward pressure on pricing. Getting a realistic cost assessment early in the process is one of the most effective ways to manage your exposure. Our office fit-out cost guide covers current pricing in more detail.

When should you start planning for dilapidations?

The short answer: 12 to 18 months before your lease expires. This timeline gives you enough room to assess the works required, obtain competitive tenders, negotiate with your landlord, and complete the physical reinstatement before the lease end date.

Here is a practical timeline based on how we typically manage dilapidation projects:

• 18 months before lease end: Review your lease to understand the full extent of your reinstatement obligations. Identify any licences for alterations and confirm what was agreed at the time. Engage a building surveyor to carry out a preliminary dilapidation assessment.
• 12 months before lease end: Commission a detailed scope of works and cost estimate. Begin discussions with the landlord or their surveyor about the expected extent of reinstatement. Explore whether negotiation or a financial settlement is an option.
• 9 months before lease end: If physical works are required, appoint a contractor and agree a programme. Order any long-lead items, particularly M&E components.
• 6 months before lease end: Commence reinstatement works. Coordinate with your own move-out timeline and any overlap with a new premises fit-out.
• Lease end date: Complete all works, carry out a final inspection with the landlord’s surveyor, and hand back the premises in compliance with the lease terms.

Leaving dilapidations until the final few months of a lease is one of the most common — and costly — mistakes we see. Late starts lead to compressed programmes, premium pricing from contractors, and reduced bargaining power with the landlord. If you are unsure about your obligations, booking a survey is a sensible first step.

Can you negotiate dilapidations with your landlord?

Yes — and in many cases, negotiation leads to a better outcome for both parties. Not every landlord wants the premises handed back in its original 2010 configuration, particularly if they intend to refurbish the space for a new tenant or reposition the building entirely.

There are three common approaches to resolving dilapidations in Ireland:

Agreed financial settlement

Rather than carrying out the physical works, the tenant pays the landlord an agreed sum representing the cost of reinstatement. This approach suits situations where the landlord plans to strip out the space anyway for a new tenant. The settlement figure is typically negotiated between the parties’ surveyors and can result in significant savings compared to doing the works — particularly where the landlord’s intended use renders full reinstatement unnecessary.

Tenant carries out the works

The tenant manages and completes the reinstatement works directly. This approach gives the tenant control over costs, contractor selection, and programme. It is often the preferred route where the tenant has an established relationship with a fit-out contractor. Chawner & Trench regularly manages dilapidation works on behalf of tenants — from initial scope assessment through to final handback. Our refurbishment services page covers the process in more detail.

Landlord’s dilapidation claim

The landlord (or their surveyor) serves a schedule of dilapidations — a detailed document listing every breach of the lease covenants and the associated cost of remedy. The tenant can accept, negotiate, or dispute the claim. It is important to have your own surveyor review any landlord’s claim, as these schedules frequently include items that exceed the tenant’s actual obligations or overstate costs.

A key point to remember: a landlord’s dilapidation claim is not a final demand. It is a negotiating position. In our experience, well-prepared tenants who engage early and have their own professional assessment typically achieve settlements 20–40% below the landlord’s initial claim.

How can Chawner & Trench help with dilapidations?

We provide end-to-end dilapidation management for commercial tenants across Dublin and Ireland. Our team handles every stage of the process:

• Lease review and obligation assessment: We review your lease clauses, licences for alterations, and any schedule of condition to establish the full extent of your reinstatement obligations.
• Dilapidation survey and cost estimate: A detailed on-site inspection against the lease terms, producing a clear scope of works and realistic cost estimate — giving you a solid basis for budgeting and negotiation.
• Landlord negotiation support: We prepare and present your position to the landlord’s surveyor, negotiate settlement figures, and advise on which items to accept, challenge, or counter.
• Reinstatement project management: If physical works are required, we manage the entire process — contractor procurement, programme management, quality control, and final handback inspection.

Whether you are two years out from a lease break or six months from expiry, getting a professional assessment early gives you the best chance of managing costs and avoiding disputes. Book a dilapidation survey to get started.

Frequently Asked Questions

What happens if you don’t do dilapidations?

If you fail to carry out your dilapidation obligations, the landlord can pursue a financial claim against you for the cost of the works. This claim can be made during the lease term (an interim schedule) or after lease expiry (a terminal schedule). In Ireland, the landlord can pursue the claim through the courts if agreement cannot be reached. The claim will typically include the cost of reinstatement works, professional fees (surveyor and legal costs), and potentially a claim for loss of rent during the period the works are carried out. Ignoring dilapidation obligations does not make them go away — it usually makes the eventual cost higher, because you lose the ability to control the works and the associated pricing.

Can the landlord claim for betterment?

No. A landlord cannot use a dilapidation claim to improve the property beyond the condition required by the lease. If the original floor finish was standard carpet tiles, the landlord cannot claim the cost of premium vinyl or timber flooring as a dilapidation. This principle — that dilapidation works should restore, not improve — is well established in property law. If you believe a landlord’s schedule includes betterment items, your surveyor should challenge them. Common examples of betterment include upgrading M&E systems beyond the original specification, replacing functional items with higher-spec alternatives, or claiming for works to areas not affected by the tenant’s occupation.

What is a schedule of condition?

A schedule of condition is a detailed photographic and written record of the condition of a property at a specific point in time — usually at the start of a lease. It serves as a benchmark against which dilapidation obligations are assessed at lease end. If a schedule of condition was agreed and appended to the lease at commencement, the tenant’s obligation is typically limited to returning the premises to the condition recorded in that schedule, rather than to a brand-new standard. This is a valuable protective document for tenants. If you are taking on a lease of a premises that is not in new condition, we strongly recommend commissioning a schedule of condition before signing.

How long do dilapidation works take?

The duration depends on the size of the premises and the scope of works required. As a general guide: a minor touch-up of a small office (under 200 m²) can be completed in one to two weeks. A moderate reinstatement of a 300–500 m² office typically takes three to five weeks. A full strip-out and reinstatement of a larger space (500–1,000 m²) usually requires six to ten weeks. These timelines assume a smooth procurement process and reasonable contractor availability. In the current Irish market, securing a contractor at short notice can add two to four weeks to the overall programme — which is another reason to start planning at least 12 months before your lease end date.

About the Author
Simon Chawner, AssocSCSI, is the founder and managing director of Chawner & Trench. He holds qualifications in Facilities & Property Management and is a PMBOK-certified Project Manager with over 15 years of experience in commercial property fit-out and reinstatement across Ireland. Simon is an Associate member of the Society of Chartered Surveyors Ireland (SCSI) and has managed dilapidation projects for tenants ranging from small professional offices to large corporate headquarters in Dublin’s central business district.