Every business manager or business owner wants to save money on office make good. When a tenant is negotiating his or her lease for a new office space, he or she will be building the cost of leaving the lease into their models when it comes time to move. One of the major costs that people face is the make-good obligation. This is also known as the make-good clause. It can impact the decision of a company whether to extend for a longer lease or relocate.
Make good obligation
This is the clause in a lease setting out how a tenant should leave an office at the end of their lease term. When the day comes to leave a leased office and hand back the keys to the property owner, the property should be in a good condition or the condition that is stipulated in the lease. We have different types of make good that you should know – back to base building, back to the condition of the premises at the commencement of the lease and patch and paint make good.
What tenants should know
The make good should be completed within the lease term. For most offices between two hundred square meters and two thousand square meters, this could take three to six weeks and would mean having to vacate the current office before the expiry of the lease.
This means that any fit-out works to the new space should be completed in three to six weeks prior to the expiry of the lease. So you should look for office interior designers for your make good project even before your lease expires. If an agreement is made with your landlord to vacate the office for them to do the make good, the three to six-week period will still apply.
In case there is an office fit-out done at the beginning of the lease, the cost of returning the office to its original condition will be higher. Taking on an existing fit-out and making no changes to the new office space will reduce the costs. Here are some more tips to reduce costs.
Complete your project and take the office to its original condition
This takes time and will be managed after delivering the fit-out to your office without all the excitement of getting a brand-new office.
Coming to an agreement with the building owner
You can agree on the compensation paid to the owner to leave the office the way it is. However, this route enacts a game of mouse and cat between the landlord and tenant and only the tenant does not have the time on their side and the property owner knows it.
Start the process early
If you want to reduce the cost of your office make good, you should consider starting the process early. Request quotes for a make-good as part of the design and office fit out process for your new space. It makes sense to enjoy the benefits of economies of scale.
