It is a very common provision in commercial and retail leases that a tenant is required to “make good” the leased premises at the end of the lease or upon vacating the property.
It is important for tenants when entering into a lease to make sure they understand their make good obligations and to seek legal advice where necessary.
In most instances the tenant is required to at least return the premises to the condition they were in when the lease commenced (except for fair wear and tear), remove their property and leave the premises in a clean and tidy state.
But often the ‘make good’ provisions will go much further and place a significant burden on the tenant.
A good property lawyer will be able to identify such terms, advise upon them and, if necessary, negotiate reasonable amendments to the make good clauses prior to entering into the lease.
Any ambiguity in the make good obligations of the tenant can lead to disputes at the end of the lease, which, for a tenant, can potentially put their bond at risk.
Three tips for tenants in relation to make good obligations:
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