Defit and Makegood: What Every Business Needs to Know Before Ending a Lease
When a commercial lease ends, most tenants think it’s just a matter of handing back the keys. But landlords think differently. That’s where defit and makegood come in—two terms that can cost you thousands if you don’t fully understand them.
Whether you’re vacating an office, retail shop, hospitality venue or warehouse, planning for defit and makegood is essential. Let’s break down what it means, what’s expected, and how to avoid common (and expensive) mistakes.
What Is a Defit?
A defit—also called a commercial strip-out—is the process of removing all tenant-installed fittings, fixtures, and finishes from a leased space. This includes things like:
Internal partitions and walls
Flooring (tiles, carpet, vinyl)
Signage and branding
Electrical and data cabling
Joinery, shelving, counters, and equipment
The goal is to return the space to its original, empty shell—basically, how it looked when you moved in (unless the lease says otherwise).
This process usually happens at the end of a lease or when a tenant vacates early. It’s often required before any “makegood” works begin.
What Does Makegood Mean?
Makegood refers to the legal obligation in your lease to restore the premises to a specified condition. It varies widely depending on what’s written into the lease agreement.
Some landlords want a basic clean and patch-up. Others want a full reinstatement, including repainting, replacing ceiling tiles, deep cleaning air conditioning units, or even re-installing items that were removed during your fitout.
Think of it this way:
Defit is about removing what you added.
Makegood is about returning what was already there—or restoring it to the agreed condition.
Common Defit and Makegood Requirements
Typical end-of-lease expectations include:
Removal of all tenant fixtures and joinery
Repairs to damaged walls, floors, or ceilings
Repainting to base colours (usually white or neutral)
Electrical disconnections and safe termination
Final professional cleaning
Air conditioning servicing or filter replacement
Check your lease early. Some makegood clauses are vague, while others are painfully detailed. Either way, surprises during handover are rarely cheap.
Why It’s Worth Hiring Professionals
Trying to manage a defit and makegood yourself might sound cost-effective—but it usually isn’t. Without experience, you risk:
Non-compliant work that fails landlord inspection
Missed deadlines that trigger lease penalties
Safety issues from incorrect demolition or disconnections
Hiring multiple trades without coordination
Professional defit teams handle everything from strip-out to waste disposal to final cleaning. A good provider understands what landlords look for and delivers a clean, problem-free handover.
How to Prepare for Defit and Makegood
Read Your Lease Carefully
Know what the makegood clause requires. Don’t assume it’s just a clean-up.Inspect the Premises Early
Document the current condition and compare it to the original entry report or fitout plan.Engage a Defit and Makegood Specialist
Get a detailed quote and timeline. They’ll manage trades, permits, and landlord communication.Allow Sufficient Time
Leave a buffer before your final lease date. Rushed jobs often lead to disputes or extra costs.
Final Thoughts on Defit and Makegood
Defit and makegood obligations are one of the most overlooked—and most expensive—parts of ending a commercial lease. Businesses often underestimate the scope of work until it’s too late.
Whether you’re in retail, office, industrial, or hospitality, don’t leave it to the last minute. Get clarity early, budget accordingly, and bring in professionals who know what they’re doing. It’ll save you time, money, and some serious stress.
Need Help With Defit and Makegood?
We provide full-service defit and makegood solutions across Australia. Whether you're exiting a lease, downsizing, or relocating, our team handles the entire process—efficiently, safely, and in line with your lease.
Get a free quote today and make your handover seamless.
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