End-of-Lease Checklist: Preparing for Expiry or Renewal
21 Jan 2025
End-of-Lease Checklist: Preparing for Expiry or Renewal
Introduction
As your lease term nears its end, planning ahead can ensure a smooth transition, whether you’re renewing or relocating. Commercial leases often include specific requirements and deadlines that tenants must meet, such as providing notice of renewal, addressing make-good obligations, and returning the property in an agreed condition. This guide outlines a detailed checklist to help you prepare for a seamless lease transition.
Checklist for Lease Expiry or Renewal
Review Your Lease Agreement:
Identify make-good obligations.
Check the timeline for providing notice of renewal or intent to vacate.
Understand financial obligations, such as outstanding rent or outgoings.
Assess Property Condition:
Inspect the premises to identify repairs or maintenance tasks required to meet lease terms.
Take photos and document the current state of the property.
Address any damage or wear and tear that falls under your responsibility.
Plan for Make-Good Obligations:
Obtain quotes from contractors for cleaning, repainting, or restoring the premises to its original condition.
Negotiate with the landlord for alternatives, such as paying a make-good settlement fee instead of performing the work yourself.
Communicate with Your Landlord:
Discuss your intentions well in advance of the lease expiry.
Begin renewal negotiations early to secure favorable terms.
Confirm any changes to lease terms in writing.
Explore New Lease Options (if relocating):
Use platforms like Properting’s lead generation feature to find new commercial spaces.
Compare rental prices, lease terms, and amenities to ensure the new property aligns with your business needs.
Conduct inspections of potential new spaces and start fit-out planning early.
Plan the Move (if relocating):
Hire professional movers to minimize disruptions to your business.
Create a timeline for packing, transportation, and setting up the new location.
Notify customers, suppliers, and other stakeholders about your move.
Document the Handover Process:
Conduct a final walkthrough with the landlord or property manager.
Request a written acknowledgment confirming the handover condition of the premises.
Retain copies of all handover documents for your records.
Case Study: Smooth Relocation
Background
A tech startup in Melbourne had outgrown its co-working space in the city’s CBD and was preparing to move to a larger office in Southbank. Their lease required extensive make-good obligations, including repainting, carpet cleaning, and repairing minor damages caused by everyday use. The business’s operations were expanding rapidly, and minimizing downtime during the move was a priority.
Resolution
The startup began preparations six months before the lease’s expiry date. They:
Engaged Contractors Early: Hired cleaning and painting professionals to handle make-good obligations for $5,000, which was 50% less than the landlord’s initial quote.
Found a New Space Efficiently: Leveraged Properting’s lead generation feature to discover and inspect multiple properties, ultimately securing a larger office with favorable lease terms.
Ensured a Seamless Transition: Coordinated their move over a weekend to avoid disruptions to client-facing operations, achieving zero downtime.
The result was a cost-effective relocation that supported their growth and maintained business continuity.
Tools and Resources for End-of-Lease Planning
Lease Management Platforms: Use tools like Properting to track critical dates and manage lease documents.
Professional Services: Engage cleaning companies, property consultants, and legal advisors as needed.
Planning Templates: Create a detailed timeline and checklist to stay organized throughout the process.
Final Thoughts
Proper planning is essential to navigating the end of a commercial lease successfully. By addressing make-good obligations, starting renewal or relocation processes early, and leveraging the right tools, businesses can avoid costly surprises and ensure a smooth transition. Whether renewing or relocating, Properting can help simplify and streamline the process for commercial tenants.
