MAKE GOOD WHAT?

Make good obligations in a commercial lease shouldn’t be a blank cheque to the property owner.

Make good obligations in the context of industrial warehouse leasing refer to the tenant's responsibilities to restore the leased premises to a specified condition at the end of the lease term. These obligations can vary significantly depending on the lease agreement, but they generally include the following aspects:

1.?????? Cleaning: The tenant may be required to clean the premises thoroughly, including floors, walls, windows, and any installed fixtures.

2.?????? Repairs: The tenant must repair any damage caused during the lease term. This can include fixing holes in walls, repairing or replacing damaged fixtures, and addressing any other wear and tear that goes beyond normal usage.

3.?????? Removal of Alterations: If the tenant made any alterations or additions to the premises (such as partitions, shelving, or equipment installations), they might be required to remove these and restore the premises to their original condition.

4.?????? Painting: Repainting walls and other surfaces to their original colors or a neutral color specified in the lease may be required.

5.?????? Flooring: The tenant may need to repair or replace flooring to match the condition it was in at the start of the lease.

6.?????? Services Disconnection: Disconnecting utilities and services such as electricity, water, and gas if required by the lease.

7.?????? Waste Removal: Proper disposal of any waste, debris, or hazardous materials left on the premises.

8.?????? Certification: In some cases, the tenant may need to provide certification that the premises meet certain standards, such as health and safety regulations, before vacating.

The specifics of make good obligations should be clearly outlined in the lease agreement. It is advisable for both landlords and tenants to document the condition of the premises at the start of the lease term, often through a condition report or entry report, to avoid disputes when the lease ends. Negotiating these terms during the lease drafting process can help both parties understand and agree on their responsibilities.

Racking & Property Solutions are industry leaders in advising on your property make good obligations, independently quoting on all works required and providing entry and exit reports for their clients.

?For an obligation free chat and even site inspection please contact our Projects Team at Racking & Property Solutions or call Pete Josefski on O475 9I8 954.??