Property Management

Managing Lease Make Good Works and Negotiations in Commercial Investment Properties

In any commercial investment property, there is a need to consider and negotiate the make good requirements with most leases. The make good requirements should be configured and set as part of the initial lease negotiation. At the end of the lease, those tenancy requirements should be studied and fully satisfied by the tenant prior to lease expiry.


Some tenants think that the remedial tenancy works can be undertaken after the completion of the lease; that is not the case and all works should be totally completed prior to lease end. A good property manager or leasing manager will ensure that the tenant complies with the lease terms and conditions prior to lease end. It should also be said that any existing lease document should be completely reviewed to ensure that any special conditions are complied with by the tenant and/or the landlord at lease end.


Control Lease Make Good Requirements and Works


Here are some ideas to help you control the make good requirements and negotiations at the end of the lease:

  1. Documentation: Review the lease document in its entirety. Understand the special lease terms and conditions that apply to both the landlord and the tenant at the end of the lease. There may also be time frames associated with those terms and conditions.
  2. Preparation: Prepare early for the end of the lease. It is wise to review the lease at least six months prior to the end of the term. In that way, you will have plenty of time to understand what needs to be done and by whom.
  3. Know Your Clients Requirements: Fully brief your client prior to the end of the lease negotiation with the tenant. In some cases, the client as the landlord may have certain requirements in that make good. Whilst the tenant may need to undertake particular works, the landlord may see an exchange of money as an attractive alternative to the tenancy make good. In that way, the landlord can decide at a later time if the fit-out will suit another incoming tenant.
  4. Use Condition Reports: Prior to the commencement of any leasing situation, a condition report should have been created. That condition report will then be used again at the end of the lease to identify any issues of repairs and damage.
  5. Cover all the Issues: There are special areas of focus to consider with every tenant occupancy and make good requirement. Some of the main factors to look for include electrical, IT, air conditioning, lighting, carpets and flooring, walls and petitions, signage, and floor or wall penetrations. In some cases, you will need specialist advice or assistance from engineers and consultants to ensure that the appropriate outcomes and standards are achieved in the premises at the end of the lease.


The key strategy to a successful exit strategy in working with a tenant in an investment building is one of control. Communicate with the tenant in writing as part of the exiting process. Help them understand exactly what you require to ensure that they leave the premises at the right time and in the right condition.

Understand the lease document before you start, and allow for the appropriate timings and changes required to reinstate the premises to the suitable standards. Document everything as you go to avoid any misunderstandings between the landlord and the tenant.

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