End of Lease Make Good: A Timeline for Commercial Tenants
End of lease make good works best when you start planning 6 to 12 months out. Here is a realistic timeline from lease review to bank guarantee release.
End of lease make good goes smoothly when tenants start planning well before the actual handback date. Leaving it to the final weeks is the single biggest reason make good projects run over budget or delay the return of a bank guarantee. Commercial leasing legal commentary consistently recommends beginning 6 to 12 months before lease expiry.
A realistic end of lease timeline
| When | What to do |
|---|---|
| 6 to 12 months out | Review your make good clause in detail. Check for an entry condition or dilapidation report. |
| 4 to 6 months out | Scope the work with a contractor and get fixed-price quotes. |
| 2 to 3 months out | Book the works, allowing time for any asbestos assessment on older buildings. |
| Final month | Complete the strip out and reinstatement. Schedule a joint inspection with the landlord. |
| Handback day | Walk through with the landlord, resolve any final items, hand back keys. |
| After handback | Follow up on your bank guarantee release once the landlord confirms make good is complete. |
Bank guarantee release
Most commercial leases are secured with a bank guarantee, commonly three to six months' rent, sometimes sized specifically against fit-out or make good exposure. At lease end the landlord checks that rent and outgoings are paid and that make good is complete before releasing it. Leases that are vague about the release timeframe are the ones where tenants end up chasing landlords for weeks or months, so if you are negotiating a new lease, ask for a clear return timeframe written in.
Full guide to bank guarantees and make good
Don't wait for the final inspection to find problems
Ask for an informal walkthrough with the landlord or their agent partway through your works, not just at the very end. Catching a scope disagreement while contractors are still on site is far cheaper than fixing it after they have demobilised.
Request quotes for your make good
Frequently asked questions
How far in advance should I plan my end of lease make good?
Commercial leasing advice generally recommends starting 6 to 12 months before your lease expires, giving enough time to scope works, get quotes and handle any asbestos assessment without rushing.
When is my bank guarantee returned after make good?
There is no universal statutory timeframe for standard commercial leases; it depends on your lease wording. The landlord typically returns it once rent, outgoings and make good obligations are all confirmed complete, so a clear return timeframe in the lease is worth negotiating upfront.
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Sources: Stonegate Legal, Make Good Obligations in Commercial Leases , Sprintlaw, Bank Guarantees for Commercial Leases