The “make good” obligations refer to the responsibilities of a tenant (lessee) to restore the premises to its original condition at the end of the lease term. These obligations are typically outlined in the lease agreement and serve to ensure that the property is returned in the same condition it was in when the lease began.
Here are the key aspects of make good obligations for a tenant at the end of a lease in Queensland:
1. Restoring the Premises:
The tenant is generally required to return the premises to the landlord in the same condition as when the lease commenced. This includes repairing any damage caused during the tenancy and removing any alterations, additions, or fixtures that were installed by the tenant, unless agreed otherwise in the lease.
2. Removal of Tenant Improvements:
If the tenant made specific improvements or alterations to the property during the lease term, the lease agreement should specify whether these improvements need to be removed at the end of the lease. If removal is required, the premises should be restored to its original state.
3. Repairing Damage:
The tenant is responsible for repairing any damage to the property caused during the lease period. This includes both intentional damage and damage resulting from normal wear and tear. The extent of repair required should be clearly defined in the lease agreement.
4. Compliance with approval:
Often times, the make good obligation requires Council approval and this should be obtained prior to commencing any work.
If the premises is located in a community titles scheme, the body corporate’s approval may also be required.
5. Notification and Documentation:
The lease agreement should outline the process for notifying the tenant of their make good obligations well in advance of the lease expiry. Proper documentation, including photographs and condition reports, may be necessary to assess the property’s condition at the beginning and end of the lease term.
6. Negotiation and Agreement:
The parties should negotiate the make good obligation prior to entering into the lease (ideally during negotiation of the heads of agreement) and clearly document the agreed terms to avoid a later dispute.
7. Professional Assistance:
Both landlords and tenants are encouraged to seek legal advice to ensure that the make good obligations are clearly defined and understood in the lease agreement. Legal professionals can help draft detailed terms that protects the interests of the parties.
It’s crucial for both landlords and tenants to have a clear understanding of make good obligations and to address these obligations in detail within the lease agreement to avoid misunderstandings and disputes at the end of the lease term. Consulting with legal professionals experienced in property law is highly recommended to ensure compliance with Queensland regulations and a smooth transition at the end of the lease.
Disclaimer: This content is intended as general commentary and may not be applicable to your specific situation. It does not replace independent legal advice. For a no-obligation consultation on various matters, you can contact us at (07) 3184 2424.