Relocating your business or ending your lease means you need to ensure you “make good” the premises before walking out and handing back the keys.

Not familiar with the term “make good”?

It refers to a common standard clause requiring tenants to return their leased property to its original state. This is a relevant issue (and sometimes an avoidable time costly one) for tenants who have leased the ‘shell’ of a building or who have changed the existing fitout to suit their needs. If you fall into this category, make sure you allow some time for a make good before your end of lease.

Here are some important things to keep in mind:

Keep a record of everything you’ve changed. Include all the big and small details and double check these changes by doing a quick walk-through rather than assuming. The most common changes you should probably note include:

• Painted walls
• Shelves
• Hooks or any other wall inclusions
• Lighting
• Carpet, floorboards or tiles
• Partitions
• Blinds
• Air conditioning or heating

Always check the original lease agreement. Sometimes the provisions for a make good are included in your clause. And sometimes they aren’t. They can also be elusive and vague, wording in complex jargon. By law, a landlord may be able to take legal actions if the premises isn’t returned to them in its original condition. Follow up and enquire on your exact obligations before you hit your lease deadline.

Go one step further and double check your list with your landlord. If your changes are minor or considered an improvement, they could be happy to keep them as part of the property. Schedule enough time to get your landlord to inspect your property and discuss the advantages parts of any changes you’ve made. Alternatively, they might suggest ways to integrate them into the original property, using an experienced makegood specialist.

Keep it clean and simple. Whether your premises needs a complete makegood re-do or just a few maintenance fixups, always hand back the keys once it’s in a clean state.

If you have any questions about a tenant’s obligations when moving out, don’t hesitate to get in touch with one of our specialists!