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ARTICLE · 05 JUNE 2014

Tenancy make good arrangements should be specified clearly when negotiating the lease

The major problem with make good clauses is the lack of precision and understanding of the obligations of the parties.

AustraliaReal Estate and Construction

In brief - Common problems are lack of precision and lack of understanding of obligations

The major problem with make good at the end of a tenancy is the lack of precision and understanding of the obligations of the parties. This can be avoided by giving sufficient thought to these arrangements and having appropriate discussions at the time of the initial lease negotiations.

Landlords and tenants tend not to think about the end of the lease

The reason why make good obligations become a problem is that people do not give these arrangements sufficient thought nor have appropriate discussions about them at the time of lease negotiations. What is going to happen at the end of the lease seems to be an afterthought in discussions when a new lease is being negotiated.

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