A detailed condition report, fitout records, and written landlord approvals are the primary documents that prevent make good disputes. These provide an objective benchmark for the original state of the space and document which modifications were installed during the tenancy.
The absence of a clear condition report from lease commencement is the most common cause of make good arguments.
Why the condition report is non-negotiable
A condition report is a detailed written and photographic record of the exact state of the space on the day you move in. It captures every wall, floor, ceiling, and existing defect so you are not held responsible for damage that existed before your tenancy. If your landlord does not provide one, you should prepare your own, have it witnessed and dated, and store it safely. This makes the original condition a factual question with a documented answer.
Using fitout records as a defence
Fitout records and landlord approval correspondence are essential for resolving disputes over who installed specific joinery or partition walls. When you obtain written consent for major fitout works, it is much harder for a landlord to dispute your reinstatement approach later. These records are especially critical for complex installations like custom glass partition walls or structural modifications to doorways.
Documenting fair wear and tear
Disputes often arise when tenants claim fair wear and tear on items the landlord considers damage. While paint scuffs and minor carpet wear are generally accepted, holes from screen mounts or damaged floor tiles are not. Documenting the condition of the space progressively throughout the tenancy allows you to address damage as it occurs rather than accumulating liability at lease end.
Retail lease regulatory requirements
Retail make-good in Victoria is governed in part by the Retail Leases Act 2003. This legislation places some limits on what landlords can require from tenants during the handover process. This is particularly important for food and beverage tenants who have installed extensive plumbing and ventilation works.
Securing final sign-off
At the final inspection, you must present the original condition report, fitout documentation, and the agreed make-good scope of works. You must obtain written confirmation once the landlord is satisfied that obligations have been met. Progressive Corporate’s project team can help coordinate these works to ensure the standard of works meets landlord expectations.
Frequently asked questions
What happens if the landlord did not provide a condition report?
You should prepare your own report, have it witnessed and dated, and store it safely. This provides the objective benchmark needed to measure your make-good obligations.
Who should perform the make good works to avoid disputes?
Use a reputable contractor who understands what Melbourne commercial landlords expect. An independent assessment from a qualified third party can resolve any remaining disputes regarding the standard of works.
Does the type of partition affect make good costs?
Yes. Every decision made at the fitout stage, such as installing custom glass partition walls, has a make-good implication because these must be removed when you leave.
Questions to ask your fitout company before you sign
- Which parts of the proposed fitout will be the most expensive to reinstate at the end of the lease?
- Can we use building-standard finishes and systems to reduce future make good costs?
- Does the landlord require specific documentation for the reinstatement of HVAC or fire services?