If you are approaching the end of a commercial lease in Brisbane, there is a good chance you have come across the term “makegood.” For many tenants, it arrives as a surprise. For landlords, unresolved makegood is one of the most common sources of end-of-lease disputes.
This article breaks down what office makegood actually involves, who is legally responsible for it under Queensland law, and how to avoid the costly mistakes that catch businesses off guard when it is time to hand back the keys.
Office makegood refers to the process of returning a commercial premises to an agreed condition at the end of a lease. In practical terms, that usually means undoing whatever changes a tenant made during their occupancy and restoring the space so it is ready for the next occupant.
Depending on what the lease says, makegood can range from basic cleaning through to a full strip-out of partitions, flooring, ceilings, and built-in joinery. Some leases require tenants to return the space to its original base build configuration, which can be a significant and expensive scope of work.
Common makegood tasks include:
The scope is set by the lease, which is why reading and understanding that document before you sign it is so important.
Queensland commercial leases are governed by the Property Law Act 2023, which came into force on 1 August 2025. This legislation updated and replaced parts of the older Property Law Act 1974 and introduced a clearer framework for how end-of-lease obligations work.
Under Schedule 1 of the Property Law Act 2023, the standard position is that a tenant must return the premises to the landlord in the same condition as at the start of the lease. The tenant is not required to repair damage caused by reasonable wear and tear, or damage caused by events such as fire, flood, lightning, storm, or things the landlord has insured against.
However, the Act also allows the landlord and tenant to agree on different conditions in the lease itself. This is where makegood clauses come in. They can expand or limit what the tenant is required to do, and they override the default position where the parties have clearly agreed to something different.
For retail shop leases in Queensland, the Retail Shop Leases Act 1994 adds another layer. Under that Act, a clause requiring a tenant to refurbish or refit a retail shop is void unless the lease includes specific details about the nature, extent, and timing of those requirements. This is designed to protect retail tenants from vague or open-ended obligations.
If you are unsure which legislation applies to your premises, seek legal advice. The distinction between retail and non-retail commercial leases matters.
In most cases, the tenant pays. The makegood obligation sits with the tenant because they are the one who modified the space. Landlords take on commercial premises as an investment, and they have a reasonable expectation that the property will be returned in a condition that allows them to lease it again without bearing the cost of someone else’s fitout.
That said, the situation is not always straightforward.
When the tenant pays: If the lease includes a makegood clause requiring the tenant to restore the space, the tenant is responsible for organising and funding that work. This applies whether the work involves repainting, stripping out a fitout, or returning the premises to base build.
When there is a cash settlement: Some tenants negotiate a cash payment to the landlord instead of carrying out the physical works. This can be a practical option when the landlord intends to refurbish the space anyway and would prefer to take control of the scope and contractors. The amount is usually negotiated based on the estimated cost of the works.
When the landlord carries out the work and deducts from the bond: If a tenant fails to complete their makegood obligations before vacating, the landlord can arrange for the work to be done and recover those costs from the security deposit or bank guarantee. If the costs exceed the bond, the landlord may pursue the tenant for the difference.
When the landlord takes on the cost: This is rare, but it happens when the lease does not include a makegood clause, when both parties have agreed to a different arrangement in writing, or when there is no evidence of what the premises looked like at the start of the lease.
Makegood disputes are one of the leading sources of conflict at the end of commercial leases in Queensland. Most of them are avoidable. Here is where things tend to go wrong.
Not reading the makegood clause at lease start. The time to understand your makegood obligations is before you sign, not when you are packing up to leave. Some leases include very broad obligations that could cost tens of thousands of dollars to satisfy. Tenants who are surprised at the end of a lease almost always failed to take the clause seriously at the beginning.
No condition report or entry photos. A condition report signed by both parties at the start of the lease is the best evidence of what the premises looked like before the tenant moved in. Without it, disputes about what needs to be restored become difficult to resolve. If you are a tenant, document everything on day one.
Inheriting a previous tenant’s fitout. Some leases contain clauses that make the incoming tenant responsible for any fitout in place at the start of their tenancy, even if it was installed by a previous occupant. This is a scenario worth checking before you sign.
Leaving makegood too late. Makegood takes time. A full strip-out and repaint of a commercial office can take days to weeks depending on the size and scope. If you plan to finish makegood after your lease end date, you may be liable for holding over rent in addition to the cost of the works.
Confusing makegood with redecoration. These are two different obligations. Makegood relates to what condition you return the premises in at the end of the lease. A redecoration clause requires maintenance or cosmetic upgrades at set intervals during the lease, such as repainting every few years. They can both exist in the same lease.
Landlords are not without obligations either. If you want to enforce a makegood clause, you need to be able to show what condition the premises were in at the start of the lease. Without a condition report and photographs, it becomes very difficult to argue that a tenant has failed to meet their obligations.
Landlords should also be clear in the lease about exactly what makegood means for that space. Vague clauses cause disputes. The more specific the clause, the easier it is to enforce.
If a tenant vacates without completing their makegood, the landlord should get quotes for the works promptly and document everything before any remediation begins. This creates a clear paper trail for recovering costs from the bond or pursuing the tenant for any shortfall.
If a dispute arises, the Queensland Small Business Commissioner (QSBC) can mediate makegood disputes up to $750,000 in value. This is usually a faster and cheaper path than litigation.
For retail shop lease disputes that are not resolved through mediation, QCAT is the next step. For non-retail commercial leases, unresolved disputes go to court.
The best outcome is always one that is resolved directly between the parties before things escalate. Getting quotes, communicating early, and negotiating in good faith goes a long way toward avoiding the cost and time of formal proceedings.
At Trade Project Services, we handle office makegood for commercial tenants and landlords across Brisbane. We have been working in the commercial fitout and maintenance space for over 40 years, which means we understand what a proper makegood involves and how to deliver it efficiently.
Whether you need a full strip-out and reinstatement to base build, a repaint and patch job, or something in between, we can assess the scope of works and provide a clear quote. We work directly with tenants, property managers, and building owners.
If you are approaching the end of a commercial lease and need to understand what your makegood involves, get in touch with our team. We offer free quotes and can help you plan and deliver the works on time.
