Are you a tenant renting out a commercial property? Have you got a “make good” clause written into your end of lease agreement terms? If your lease does contain this clause, then there are a few things you need to know before performing a stripout and vacate the premises.
Defits and Make Good Clauses Explained
A “make good” clause refers to the condition of the property at the end of the lease. It also stipulates your responsibilities as a tenant for leaving the premises in the same condition before you took occupation. The make good clause is one of the most disputed parts of terminating your lease agreement, and it can result in a headache if you don’t follow the terms.
Before Signing Your Lease Agreement
Before you sign your lease, you need to pay special attention to the make good clause. Your make good clause will stipulate whether you need to hand over the property in the condition you found it, less wear and tear, or if you need to repaint, re-carpet, and redecorate the premises before handover.
You’ll have to negotiate the make good terms before you sign the lease, or it could result in a costly renovation. Both parties need to understand the terms of the make good to avoid legal repercussions at the end of the lease term.
Check for a Condition Report
Before you occupy the premises, you’ll need to ensure that you conduct a condition report. If the landlord’s previous tenant abused the facilities, they might try to con you into signing a make good clause, with the hope that you don’t conduct an initial inspection and a condition report.
As a result, the landlord will come after you for the costs of any repairs, even if you were not responsible for the damage. It’s advisable that you complete a spreadsheet of all the issues you find wrong with the property. Make sure you take photos of any damage to ensure that you have proof of your claims.
You can also hire a third-party inspection service to complete the condition report, and have the landlord sign and acknowledge the condition report as well.
Reasons for Performing Shop Stripouts and Demolitions
Landlords require stripouts for various reasons, including;
- They might require a complete restoration after flood, fire, or storm damage.
- The building contains hazardous materials, like asbestos, that require stripping and disposal for the renovation to be suitable for occupation.
- Mold infestation can cause a severe health concern, and the landlords or the tenant might not see it on your occupation.
- Foundation problems might cause the need for an internal stripout and demolition of the property.
- Faulty wiring or plumbing might also cause the need for a stripout and demolition of the property’s interior.
Shop Demolition and Retail Demolition Services
Before you hire a defit service company, make sure that you check the contractor for the following requirements.
- Project planning and timelines
- Demolition and removal of flooring
- Demolition and removal of partitions and fittings
- Demolition and removal of walls
- The removal and replacement of fixtures
- Subfloor preparation for a new shop floor
- Site cleanup, including debris removal
Hiring the Right Defit Company is Vital
It’s critical that you hire the right contractor for the job. If the contractor does not leave the building to the standards set by your landlord in the make good section of the lease, you’ll end up wasting your money.
As a result, you’ll have to hire another contractor, or the landlord might hire someone to do the job at your expense. Make sure that you also have the first option for hiring a contractor, as your landlord might get a kick-back from the renovation company doing the job.