In short: if your commercial lease is ending and you are moving to a new warehouse, office or unit, the work you do in the 12 months before you leave largely decides how smooth the exit is and how much a landlord can claim afterwards. Start by checking what your lease requires, then plan the repairs, reinstatement and handover well ahead of the end date.
This guide is a practical timeline for tenants. It sits alongside our guides on what dilapidations are and the RICS Dilapidations Protocol, which explain the underlying process in more depth.
What tenants are usually responsible for at lease end
Every lease is different, so the starting point is always your own document. Most commercial leases include some or all of the following obligations when the tenancy ends:
- Repair: returning the property in the standard of repair the lease requires, which is not always as good as new.
- Decoration: redecorating internally and externally at set intervals and in the final year of the term.
- Reinstatement: removing alterations you made, such as partitions, mezzanines, racking, signage and cabling, and making good the damage.
- Vacant possession: handing back the premises empty, clean and free of your goods and occupiers.
- Compliance and paperwork: certificates, manuals and consents that the lease requires you to hand over.
Some tenants also have breaks, rent reviews or renewal rights that affect the timing, so check the lease early. If your lease may be protected under the Landlord and Tenant Act 1954, that also affects how and when you can end it, and your solicitor should advise on this.
12 months or more before lease end
- Read the lease carefully. Find the repair, decoration and reinstatement obligations, the end date and any break dates. Your solicitor should confirm the legal position.
- Decide your plan. Renew, relocate or negotiate a surrender. Larger industrial and warehouse moves can take a long time to find, fit out and move into, so start early.
- Gather your records. Licences for alterations, original plans, maintenance records and any schedule of condition from when you took the lease.
- Get an independent condition assessment. A chartered building surveyor can assess the property against your lease obligations and give you a realistic view of the work and cost, often called an interim dilapidations assessment. See our guide to dilapidations surveys.
6 to 12 months before lease end
- Scope and price the works. Use the surveyor's report to prioritise repairs and reinstatement, and obtain quotes.
- Check your break and notice dates. If a break clause applies, conditions such as vacant possession and up-to-date rent can decide whether it works. Our lease break advice covers this in detail.
- Talk to your landlord early. Open discussions on what will be required. Sometimes a landlord plans to redevelop or re-let the unit as it stands, which can reduce what is worth doing.
- Plan the move. Allow time for removals, racking, IT and fit-out at the new premises so you are not rushing the old one.
3 to 6 months before lease end
- Carry out the agreed works. Complete repairs, decoration and reinstatement. On industrial buildings this often includes removing racking, restoring floors and making good the roof, cladding and yard. See our guide to warehouse and industrial dilapidations.
- Keep evidence. Photographs, invoices and certificates for everything you do.
- Arrange access. Make sure you can complete works and move out with the right access and insurance in place.
The final weeks
- Remove everything that is yours. Stock, equipment, signage, furniture, waste and any hazardous materials, leaving the property clean.
- Record the handover. Take dated photographs and meter readings, and note the date and time keys are returned.
- Close down utilities and transfer accounts as the lease and suppliers require.
- Return keys and confirm in writing that vacant possession has been given.
After you leave: the schedule of dilapidations
The landlord may serve a schedule of dilapidations listing the work they say you should have done, usually with a costed claim. You do not have to accept it as it stands. The RICS Dilapidations Protocol sets out a process and timescales for this, and the law limits what a landlord can recover, for example to the loss in value of the property where that is lower than the cost of works. If you receive a schedule, take advice promptly. Our team helps tenants with schedules of dilapidations and responses.
If you are taking on new premises
A move is also the best time to limit future liability. Before you sign a new lease:
- Commission a schedule of condition so the starting condition is recorded and your repair obligation is tied to it.
- Negotiate the repairing covenant, any break rights and reinstatement requirements before you commit.
- Understand any works the landlord expects at the end of the term, so you can budget for them from the start.
Frequently asked questions
What should I do when my commercial lease is ending?
Check your lease obligations, decide whether you will renew or relocate, take advice on the end date and any notices, and have the property assessed by a chartered surveyor so you know what work is needed. Start at least 12 months before the end date where you can.
Do I have to return a commercial property in the condition I found it?
Not necessarily. The standard is set by the repair and reinstatement clauses in your lease, and a schedule of condition recorded at the start can limit it. Read the lease or ask your adviser.
What happens if I leave before doing the repairs?
The landlord can claim for the cost of the work, usually through a schedule of dilapidations. The claim is not automatic, and the amount can be challenged.
Should I speak to a surveyor before I move out?
Yes. An early assessment shows what the lease requires and what it is likely to cost, while you still have time to act on it.
Talk to a chartered surveyor early
Bemerton Consulting's RICS chartered surveyors advise commercial tenants on lease-end obligations, dilapidations and moving premises. Get in touch with the property, the lease end date and any key deadlines, and the right surveyor will come back to you.
This guide is general information, not legal advice. Your lease and circumstances are specific to you, so take advice from your solicitor and surveyor.