The “make good” clause is the sting in the tail of just about every office lease. At a time when all you want to do is walk away, you could be looking at spending thousands of dollars in order to fulfil your commitment to the landlord. There are a few things that you should consider regarding make good clauses, and believe it or not you should do this BEFORE YOU SIGN THE LEASE!
- If you are taking over the lease from someone else, you are most likely taking over their make good obligations, read the lease carefully.
- Why not try to negotiate the clause out of the lease, particularly if you are in a buyers market. They may well succumb to your way of thinking.
- Be sure to do a photographic dilapidation report before you move in, if the office space is in a poor state of repair before you move in, you don’t want to be the person who improves the property for someone else when you exit. Unless your lease says otherwise you should be looking to return the property in the condition that you found it. There is normally a clause on “fair wear and tear” that you should make sure you understand. If you are not comfortable doing a dilapidation report yourself there are professional organisations that can do it for you… for a fee.
- An expense that I’m sure you can do without is replacing the carpet, unless it is in your lease to replace it regardless of its condition. The use of chair mats and regular professional cleaning of the carpet will reduce your chances of having to replace the carpet when you finish your lease.
This list is by no means comprehensive, but it’s a good start. If you have had experience with issues around make goods, please tell us your story.



