What "good or better" means in a commercial lease

A house lease is simple. You hand it back the way your entry report says you got it, less fair wear and tear.

A commercial lease usually asks for more. You are allowed to fit the place out, with the owner's permission, and you pay the outgoings. In return, it usually has to go back as good or better.

This catches people because nobody reads that clause until the lease is ending. Then the landlord walks through and says the floors, carpets and walls are not up to standard, and hands over a list. We have seen tenants told they need to do $10,000 of work.

You can avoid most of that if you start on day one. Keep your entry condition report and photos. Put windows on a three monthly clean and carpets on a six monthly clean. Strip and reseal hard floors when they need it. Know when your air conditioners are due.

A property that has been looked after usually needs a clean and a touch up when you leave. A property that has been ignored needs a bill paid.

If you are signing a lease, or you are near the end of one, talk to us about it. Legal questions about your lease go to your solicitor.