What is the definition of fair?

We’re a country built on one simple word – fair. A fair fight, a fair go, a fair result. However, we are finding more often that building occupiers, specifically tenants are unaware that the term “fair” will not necessarily provide them the “fair go” they think it provides them at the end of their lease term.

With the term “fair wear and tear”, a usual caveat in modern leases, tenant’s time and time again are falling back on this as their argument to protect against damages brought on by a Make Good Schedule at lease expiry.

Tenants have been surprised that cleaning roofs, walls, floors and ceilings, electrical and mechanical maintenance repairs and replacements, as well as repairing concrete slabs can fall outside the realms of “fair” and form part of their end of lease obligations.

At PEP we always recommend to our clients when signing a new lease:

• Have a Building Consultant review the repairing and make good lease clauses;
• Obtain a condition report prior to entry; and
• Prior to the lease expiry have an independent assessment completed to determine the approximate make good cost.

If you are a tenant and know you will have a future make good requirement we recommend you speak to a PEP representative to ensure you’ll have the best opportunity for a fair fight.

Article by Greg Millsopp – Senior Consultant at PEP Solutions

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