Tenants’ make good obligations at end of lease — general

Understanding tenants’ make good obligations at the end of a lease is essential for legal practitioners advising on commercial property leases. This guidance note explores the scope and variations of these obligations, highlighting key legal nuances without exhaustive procedural detail.

Topics Covered

Tenants’ obligations at end of lease
Most common variations of the “make good” obligation
Consider the tenant’s “make good” obligations early
Return of premises in a state consistent with the tenant having performed its obligations
When must the tenant “make good”?
“Make good” considerations on assignment

Essential Insights

Assess how different “make good” variations affect tenant obligations and potential liabilities.
Consider early negotiation of make good terms to influence lease costs and avoid costly surprises.
Understand complex definitions like “premises” and “fair wear and tear” that shape make good scope.
Recognise the importance of timing for compliance to avoid penalties and disputes at lease end.
Explore how assignment scenarios alter make good responsibilities and legal outcomes.

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