Make Good Dispute

How make good disputes start

Make good disputes usually start when the lease ends and the landlord says the tenant hasn’t done enough. The landlord either asks for more work or claims the cost of doing it.

The disagreement is usually about:

• what condition the premises were in at the start
• whether an item is the tenant’s fitout or the landlord’s
• what “fair wear and tear” covers
• whether the landlord can claim money instead of the work
• how much the work should cost
• rent or losses while the work is done

Our guide to the make good clause explains what these clauses usually require.

Start with the clause

The make good clause sets the obligation. Some clauses only require you to remove your fitout and repair damage. Others require the premises to be returned to a base building condition, even if they were fitted out when you moved in.

Check whether any later document changed the obligation, such as a deed of variation or a deed of assignment.

The evidence

Make good disputes turn on evidence. Gather:

• any condition report or photos from the start of the lease
• the lease and any deeds that changed it
• photos and notes from the end of the lease
• the landlord’s claim and quotes
• your own quotes for the same work
• emails and letters about make good

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For tenants

Start before the lease ends if you can. Doing the work yourself is often cheaper than paying the landlord’s quote, but check what the lease says about timing and approvals. If the work runs past the end date, the landlord may claim rent or its losses for the delay.

If you receive a claim, check each item against the clause and the starting condition, and compare the landlord’s quotes with your own. Paying or agreeing to deductions from your bond before you have done that can make the claim harder to dispute.

For landlords

Check what the lease requires of the tenant and whether it requires you to give notice of the work before the lease ends. Inspect the premises, record the condition and get quotes.

A claim is stronger when each item is tied to the clause and backed by evidence. We advise on the claim, prepare the demand and deal with the bond or bank guarantee under the lease.

Negotiating a settlement

Many make good disputes are resolved by agreement, often with a payment instead of the work. We can negotiate for you and, if you reach agreement, record it in a deed with a release. If the lease is ending early, this can go in a deed of surrender.

If the lease is a retail shop lease, your state’s retail leases Act usually requires mediation through the small business commissioner before a tribunal or court will hear the dispute. See our commercial lease dispute page for how that works.