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ARTICLE · 19 JUNE 2014

'Make good' requirements at the end of a lease

A lessee is often required to "make good" the premises back to a condition that is agreed within the terms of the Lease.

AustraliaReal Estate and Construction

At the end of a lease term, there are requirements on the Lessee to "make good" the premises back to a condition that is agreed within the terms of the Lease, but usually subject to "fair wear and tear".

Often the "make good" conditions can be extensive and specific such as:

  • recarpeting the premises;
  • removing all partitions and walls installed in the premises;
  • returning the premises to open plan configuration;
  • re-positioning the air conditioning ducting to open plan configuration;
  • replacing damaged ceiling tiles and grids;
  • reinstating the structure of any part of the premises which has been penetrated or altered by or on behalf of the Lessee.

Whereas at other times, the terms of a lease can be such that the Lessee is simply required to "make good the premises to their condition at the commencement date of the Lease, subject to fair wear and tear".

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