When a commercial lease comes to an end in Australia, most tenants are expected to return the premises to its original state. This requirement is known as commercial office make good. It often includes removing any tenant-installed fit-outs, repainting walls, repairing damage, and restoring the layout to its original condition.
These obligations are usually outlined in the lease agreement, but many tenants are unaware of just how detailed and costly they can be.
Why Make Good Matters
From a landlord’s perspective, make good clauses ensure their property is leasable again without delay or added expense. For tenants, failing to meet these obligations can result in penalties, withheld bonds, or even legal disputes. That’s why understanding these clauses well before your lease ends is essential. They are not just a formality – they carry financial and legal weight.
Assessing the Scope Early
A common mistake is leaving make good discussions until the final month of tenancy. The best time to assess these requirements is well in advance. Doing so gives you time to budget, plan the work, and avoid last-minute surprises. It may also provide room to negotiate alternatives with your landlord, such as a cash settlement instead of physical reinstatement.
Engaging the Right Professionals
A professional assessment can save both time and money. Commercial property managers, project managers, or even legal advisors can help interpret your lease and determine what is and isn’t required. They can also oversee the make good work to ensure it meets your obligations while staying cost-efficient.
Common Make Good Tasks
While every lease is different, most make good projects include:
- Removing internal partitions, signage, and fixtures
- Restoring lighting and ceiling tiles
- Repainting walls and cleaning carpets or floors
- General repairs to return the space to a usable condition
Each of these steps comes with its own timeline and cost, which reinforces the importance of early planning.
Final Thoughts and Compliance
Once work is completed, it’s wise to carry out a joint inspection with the landlord. Document the condition of the premises and retain receipts or certifications of the work. This minimises the risk of future disputes and ensures the return of your security bond.
Commercial office make good is more than a lease-end chore. It’s a legal obligation that impacts your business’s finances, timeline, and reputation. Preparing early and approaching the process strategically can protect you from unnecessary costs and stress.