If you’ve started the process of vacating a commercial premises in Melbourne, there’s a good chance your property manager or landlord has mentioned two words that can cause a bit of a headache: “make good.”
For many business owners, it’s the first time they’ve encountered the term. For others, it’s a familiar obligation they’d rather not think about until they absolutely have to. Either way, understanding what make good actually means, and what it involves in practice, can save you significant time, money, and stress at the end of your lease.
Here’s a plain-English guide to everything you need to know.
What Is Make Good?
Make good refers to the obligation a commercial tenant has to restore a leased space to the condition it was in when they first moved in, or to the standard specified in their lease agreement, before they hand back the keys.
In simple terms: you took over someone else’s space, you made it your own, and now you have to undo most of that before you leave.
This might involve removing fit-out elements you installed, repainting walls, repairing flooring, patching walls, or removing signage, branding, and built-in furniture. The scope depends entirely on what your lease says, and that varies considerably from agreement to agreement.
Why Does It Matter?
Make good obligations are legally binding. They’re written into commercial leases, and if you don’t meet them, your landlord can pursue you for the cost of the works, either from your bond or through further legal channels.
This is not the kind of thing you want to leave to the last minute, or to discover you’ve misunderstood only after you’ve vacated.
Property managers in Melbourne are experienced at identifying shortfalls in make good delivery, and disputes at the end of a tenancy can be costly and time-consuming. Getting it right the first time is almost always the better option.
What Does Make Good Typically Involve?
While every lease is different, the most common make good works include:
Structural and surface repairs
Filling and patching walls where fixtures were mounted, repairing any damaged plasterboard, and addressing ceiling repairs if cabling, lighting, or AC has been modified.
Painting and finishes
Repainting walls and ceilings to the original or agreed colour. In some cases this means the entire tenancy; in others, just affected areas.
Flooring
Replacing or restoring flooring to its original condition, whether carpet tiles, polished concrete, or vinyl.
Removal of installed fit-out elements
Taking out partitions, glass walls, custom joinery, built-in cabinetry, kitchenettes, or any other fixtures installed during the tenancy.
Cleaning
A thorough commercial clean, including waste removal and sometimes asbestos management, depending on the age of the building.
Compliance sign-off
Ensuring all work meets lease requirements and is ready for property manager inspection.
What Does Your Lease Actually Say?
This is the most important starting point. Before assuming what’s required, get your lease out and read the make good clause carefully, or have your solicitor or property manager walk you through it.
Some leases require you to restore the space to “base building condition,” which is quite extensive. Others simply require you to return it in a clean and well-maintained state, which is a much lighter brief. The gap between those two outcomes in terms of time and cost can be significant.
If you’re unsure, ask. Property managers generally prefer a conversation up front to a dispute at the end.
How Long Does Make Good Take?
This depends on the size of the tenancy and the scope of works. For a small office, a well-organised make good can be completed in a few days. For a larger tenancy with significant fit-out to remove, it might take two to three weeks, particularly if trades need to be coordinated and inspections scheduled.
The key is planning early. Trying to organise make good in the final week of your lease is a recipe for problems. Ideally, you want to be engaging a contractor at least four to six weeks before your lease expires, so there’s time to scope the works, get sign-off on the approach, and complete everything without rushing.
Can You Negotiate Make Good?
Sometimes, yes. If a new tenant is moving into the space and plans to fit it out in a way that makes certain restoration works unnecessary, the landlord may agree to waive specific elements of the make good. This is more common than many tenants realise, and it’s worth having the conversation through your property manager before you commit to a full scope of works.
Equally, if there’s a lease renewal or a new agreement in play, make good obligations can sometimes be factored into the negotiation as a whole.
Who Should Do the Work?
Make good is not a job for a general handyman or a rushed internal team. It requires trades who understand commercial spaces, building standards, and lease compliance, and who can deliver work that will pass a property manager inspection.
Engaging a registered commercial builder with experience in fitout and make good specifically gives you the best chance of a clean handover. They understand what property managers are looking for, they can coordinate all trades under one roof, and they take responsibility for the outcome rather than leaving you managing multiple contractors independently.
At Axess Commercial Interiors, we handle make good projects regularly across Melbourne. From wall repairs and painting through to full fitout removal and deep cleaning, we manage the entire process and work directly with property managers to ensure the handover goes smoothly. We’re a registered commercial builder with over a decade of experience in commercial spaces, so we know what a compliant outcome looks like.
Starting the Conversation
If your lease is ending in the next few months and you’re not sure where to start, the best first step is a site walk and a conversation.
We’ll look at the space, review what your lease requires, and give you a clear picture of what’s involved and what it’s likely to cost, with no obligation and no surprises down the track.
Contact the Axess team today to talk through your make good requirements.
