Relocating or vacating a commercial or industrial space often involves more than just moving out. At the end of a lease, tenants are typically required to make good the premises, restoring it to its original condition. However, there are instances where landlords may agree to waive makegood requirements entirely or partially, saving tenants considerable time and cost.
While these situations depend on a range of commercial factors, tenants who engage an experienced makegood specialist or tenant advisor are far more likely to secure favourable outcomes. Their expertise can make a compelling case for why reinstatement is unnecessary, ultimately benefiting both landlord and tenant.
At Makegoods.com.au, we have extensive experience in helping commercial tenants fulfil their end of lease obligations. Sometimes, we do see situations where the landlord is happy to waive the makegood obligation, which is a great outcome for our clients. This may happen for a few different reasons, negotiation being a key part of this eventuality.
Book a meeting to discuss your end-of-lease requirements with our team.
Understanding what a make good requirement involves
A make good clause outlines what a tenant must do to return the property to its pre-lease state. This often includes:
- Removing fitouts, furniture, or equipment
- Repairing or repainting walls, floors, and ceilings
- Disconnecting or reinstating electrical and plumbing services
- Deep cleaning or waste removal.
These obligations can vary widely depending on the lease agreement. For industrial properties, make good works might include removing machinery, patching concrete, and restoring loading docks, while offices may require the removal of partitions and electrical systems.
Understanding exactly what the lease requires is the first step toward negotiating a waiver.
When landlords may agree to waive makegood obligations
Landlords typically enforce make good clauses to ensure the property can be re-leased quickly. However, there are many circumstances where they may choose to waive these requirements, especially when guided by expert negotiation.
Common reasons include:
Planned redevelopment or renovation
If the landlord intends to refurbish or redevelop the property, it makes little sense for the tenant to spend money on reinstating elements that will soon be demolished or altered.
An incoming tenant wants the existing fitout
When the next tenant prefers to retain your layout, services, or design, the landlord may waive makegood works to save time and costs between leases.
Commercial incentives
In competitive markets, landlords may waive makegood obligations to retain good tenants, encourage early surrender, or attract new occupants quickly.
The cost-benefit does not stack up
In some cases, the cost of enforcing the make good outweighs its benefit. For example, restoring an ageing or heavily modified property may not deliver enough value to justify the expense.
Effective negotiation by a tenant advisor or makegood expert
This is often the most critical factor. A professional advisor understands both the lease language and the commercial realities, enabling them to present a strong case for why reinstatement is unnecessary or excessive.
Why engaging a makegood specialist makes a difference
Landlords are more likely to waive makegood requirements when they can clearly see that doing so will save them time, money, or effort. However, tenants often lack the technical and legal expertise to make that case effectively.
That’s where professional support matters. A makegood consultant or tenant advisor can:
- Review your lease and identify negotiation points
- Provide a costed assessment of reinstatement works
- Demonstrate the limited benefit of enforcing full make good
- Liaise with the landlord or their representatives directly
- Offer an alternative plan, such as a financial settlement or partial works.
By presenting the landlord with detailed evidence and a well-reasoned proposal, tenants often secure full or partial waivers that would not be possible through informal discussions.
Negotiating from a position of strength
The earlier you engage an expert, the better. Discussions around make good obligations should ideally begin six to twelve months before the end of your lease. This allows enough time to:
- Conduct a site inspection and prepare a condition report
- Estimate the likely make good costs
- Open discussions with the landlord about their plans for the property
- Explore opportunities for a negotiated outcome.
When landlords see that a professional team is involved, it adds credibility and structure to the process. It also reassures them that any works agreed upon will be managed efficiently and to a high standard.
In many cases, this level of professionalism leads landlords to waive makegood requirements entirely, knowing the property will still be left in a safe, orderly, and lease-ready condition.
The importance of documenting any waiver
Even when a landlord agrees to relax or remove make good obligations, tenants must ensure the agreement is properly recorded. Always:
- Confirm the waiver or modification in writing
- Reference the specific lease clause being varied
- Clarify whether the waiver applies to the entire premises or certain areas only.
Without written confirmation, a future property manager or landlord could dispute the terms, leading to unexpected costs at handover.
A makegood specialist can manage this process and ensure that every detail is clearly documented, protecting your business from future liability.
Work with Makegoods.com.au for expert guidance
At Makegoods.com.au, we specialise in helping tenants negotiate fair and practical end-of-lease outcomes. Our team has extensive experience across office, warehouse, and industrial sites throughout Sydney and beyond.
We:
- Review your lease obligations and assess the cost of works
- Prepare detailed make good scopes and reports
- Negotiate directly with landlords and property managers
- Deliver full make good services where required.
Many of our clients have successfully achieved partial or full waivers of their make good obligations through our guidance. By providing clear documentation, realistic costings, and professional communication, we make it easy for landlords to say yes.