Dilapidation Report: What It Is, What It Costs, and Why It Matters for Your Make Good
A dilapidation report records a property's condition at a point in time. Here is what one costs in Australia in 2026, what it covers, and why it matters when you negotiate a commercial make good.
A dilapidation report is a documented, photographed record of a property's condition at a fixed point in time, most commonly taken before nearby construction work starts or before a commercial tenant moves into a new lease. For a commercial tenant, this report becomes the baseline your landlord will measure your make good against when your lease ends: if the report shows a mark or a worn carpet was already there before you moved in, that is not your liability to fix.
What's actually in a dilapidation report
A standard report documents existing conditions through photographs, measurements and written descriptions. For a commercial premises, a comprehensive report covers interior areas too: walls, ceilings, floors, doors, windows and wet areas, not just the exterior. Interior coverage typically adds $200 to $400 to the cost compared with an exterior-only report, according to Owner Inspections' 2026 pricing guide.
How much does a dilapidation report cost in Australia
Residential dilapidation reports are cheaper, typically $500 to $1,500. Commercial reports run higher, from $1,500 up to $5,000 or more, because commercial premises are larger and take longer to document in the detail a landlord or tenant needs. Turnaround is usually five to ten business days for a standard report; a rush job inside 24 to 48 hours commonly carries a surcharge of 25 to 50 percent on top of the base fee.
Small commercial premises
$1,500–$2,500
Owner Inspections, 2026 pricing guide
Large commercial premises
$2,500–$5,000+
Owner Inspections, 2026 pricing guide
Heritage-listed buildings
$2,000–$5,000+
Owner Inspections, 2026 pricing guide (extra documentation and access requirements)
Why a dilapidation report matters for your make good
The single biggest source of dispute in commercial make good clauses is what 'original condition' actually meant. Without a dated, photographed record from the day you moved in, you are relying on memory (yours and the landlord's) to argue about wear that happened before your tenancy versus wear that happened during it. Our guide to the make good clause explains the 'fair wear and tear' distinction this report is used to prove.
Read the make good clause guide ยท Who pays for make good
When you actually need one
- Before you sign a new commercial lease, so pre-existing damage or wear is not later blamed on you.
- Before nearby construction, demolition or excavation work starts on a neighbouring site (a different, more common use of the term, unrelated to your own lease).
- At lease end, to compare against the entry report and settle exactly what your make good needs to cover.
Frequently asked questions
Do I need a dilapidation report before signing a commercial lease?
It is not legally required in most Australian states, but it protects you. Commercial tenants often attach a Schedule of Condition or dilapidation report to the lease specifically to limit their make good liability to changes they actually made, not pre-existing wear.
How much does a commercial dilapidation report cost?
Typically $1,500 to $5,000 or more, depending on the size and complexity of the premises. A small commercial space runs $1,500 to $2,500; a larger or heritage-listed building can exceed $5,000.
What happens if there is no dilapidation report from when I moved in?
You lose your easiest evidence for what counts as pre-existing wear versus damage during your tenancy. You can still argue your case with photos, correspondence or witness accounts, but a dated professional report is far stronger evidence if a make good dispute ends up in mediation.
Ready to get started?
Tell us about your make good, defit or strip out and we will pass your details to a provider covering your area.
Sources: Owner Inspections, Dilapidation Report Cost in Australia