Understanding commercial makegood requirements is something most tenants don’t think about—until they’re about to exit a lease and realise the handover process isn’t as simple as sweeping the floor and handing back the keys.
These requirements, which are often buried deep in lease agreements, can significantly affect your costs, your exit timeline, and your relationship with the landlord. If you’re preparing to vacate—or just planning ahead—here’s what you need to know to avoid costly surprises.
What Are Commercial Makegood Requirements?
In simple terms, commercial makegood requirements refer to a tenant’s obligation to return a leased premises to a particular condition at the end of the lease. That might mean a light clean and patch-up job, or it could involve a full defit and reinstatement to the original “base building” condition.
It all depends on what’s in your lease.
These clauses exist to protect the landlord’s asset and ensure the property can be re-let quickly. But if you don’t fully understand what’s expected—or you leave it too late—you risk delays, disputes, or significant out-of-pocket costs.
Common Makegood Obligations
While every lease is different, commercial makegood requirements usually fall into one (or more) of the following categories:
- Cleaning and minor repairs
Includes steam cleaning carpets, repainting walls, repairing scuffs or dents, and ensuring all lights and fittings are in working order. - Removal of tenant-installed items (Defit)
Workstations, partitions, kitchens, signage, data cabling—anything you’ve added during your tenancy might need to be stripped out completely. - Reinstatement to base building
This is the most comprehensive level of makegood. You’ll be expected to return the premises to how it was when you first took possession—often including ceilings, flooring, lighting, and more.
The specific scope of work will depend on the lease and how much fitout was completed during the tenancy.
Why Makegood Disputes Happen
Disputes are common because commercial makegood requirements aren’t always clearly defined. Terms like “reasonable condition” or “to landlord’s satisfaction” are vague and open to interpretation. This leads to mismatched expectations between tenants and landlords—especially when there’s no clear record of the property’s original condition.
To avoid issues:
- Get a detailed condition report at lease commencement (including photos)
- Keep records of all fitout work done
- Start planning makegood at least 3–6 months before your lease ends
- Communicate openly with the landlord well before vacating
Should You Handle Makegood Yourself or Pay Out?
Some tenants prefer to manage the makegood process with their own contractors. Others negotiate a financial settlement with the landlord, allowing them to handle the reinstatement on their own terms.
There’s no right answer—it depends on your lease, the time you have left, and your budget. That said, a professional makegood contractor can often complete the work more efficiently and to the required standard, reducing the risk of conflict at handover.
Professional Help Makes a Difference
Navigating commercial makegood requirements can be time-consuming, especially for tenants juggling relocation, handover, and daily operations all at once. Professional makegood services can manage the entire process, from defit to final clean, ensuring compliance and minimising downtime.
They also provide documentation, scope reports, and photographic evidence, which can be crucial if there’s a disagreement post-handover.
Final Thoughts
Commercial makegood requirements are a key part of any lease—but they’re often misunderstood or ignored until the final weeks. Whether your lease requires a minor touch-up or a full defit, early planning and professional advice will save you stress, money, and unnecessary conflict.
Before signing a lease, clarify exactly what your makegood obligations are. And as your lease nears expiry, get ahead of the process. The smoother the exit, the better the handover—and the stronger your negotiating position in any future tenancy.
Need help managing your makegood? We provide tailored solutions to ensure your handover meets every legal and landlord requirement—on time and within budget. Let’s talk.
