At the end of a commercial lease, the Tenant is required to reinstate the property to the condition it was in at the commencement of the lease. This is covered by the lease terms and conditions and is variably referred to as “yield up”, “handover” or “make good” – either way, it is important to have a clear understanding prior to the vacating date as to the Landlord’s specific requirements.

One of the usual contentious issues involves tenancy fit-outs from previous occupants (for example, a café changes hands several times), but when a business is purchased, all of the Tenant’s fittings form part of that purchase and therefore, the new Tenant accepts responsibility for ownership, maintenance and their ultimate removal, if directed to do so by the Landlord.

It’s always wise to have a Condition Report at the commencement of a Lease which is counter-signed by the Tenant, and also if the Tenant’s business changes hands, to ensure all parties are aware of their obligations.

As always, we recommend that if you have any questions, concerns or seek guidance for a specific situation, please contact your legal representative.