Commercial Defit Checklist: Avoid Hidden Costs at Lease End

Stepping out of a commercial tenancy can be almost as complex as moving in. Whether you’re a café operator, retailer, or office tenant, the final phase of your lease — the defit — can throw up unexpected challenges if it’s not properly planned.

A defit is the process of returning a leased space to its original condition, or as close to it as your lease agreement requires. It sounds straightforward in theory, but in practice it usually involves far more than removing signage or repainting walls. Understanding what’s included — and what’s expected — can be the difference between a smooth exit and a costly dispute.

This guide outlines what’s generally included in a commercial defit and how to avoid surprise make good costs that can catch tenants off guard.

Understanding a Defit: More Than Just a Clean Slate

When you first move into a commercial tenancy, it’s common to customise the space — installing partitions, lighting, flooring, and branding to suit your business. When your lease ends, however, you’re usually responsible for removing those modifications and restoring the space to a neutral or “base building” condition.

A retail defit generally covers three key stages: deconstruction, repair and restoration, and final presentation.

• Deconstruction involves removing all tenant-installed fixtures, fittings, and equipment.
  
• Repair and restoration covers making good any damage caused by removal or general wear and tear.
  
• Final presentation ensures the space is clean, repainted, and meets the landlord’s handover requirements.
  

Every lease is different, but the responsibility for returning the space to its original state almost always lies with the tenant. That’s why understanding your obligations early is essential.

Your Defit Checklist: What’s Typically Included

A professional defit checklist helps tenants prepare for what’s involved and prevents last-minute surprises. While specific requirements depend on your lease and property type, the following items are commonly included:

Removal of Fixtures and Fittings
This includes joinery, shelving, counters, partitions, shopfront signage, window decals, promotional materials, lighting, display units, ceiling installations, air-conditioning units, cabling, and any technology systems added during your tenancy.

Flooring and Wall Works
Lifting and removal of flooring such as tiles, carpet, or vinyl is typically required. Walls may need repainting or re-plastering to the original colour and finish, and any holes, fixings, or mounting damage should be repaired.

Plumbing and Electrical Disconnection
Tenants are generally responsible for capping and making safe any plumbing or gas connections, removing appliances or kitchen equipment, and testing and certifying electrical systems after disconnection.

Waste Disposal and Cleaning
All debris and waste materials should be disposed of responsibly. The space must be thoroughly cleaned, including floors, walls, and surfaces, and returned free from odour or residue — particularly important for food tenancies.

Base-Building Restoration
Ceiling tiles, lighting grids, and HVAC vents may need reinstatement. Fire systems, sprinklers, and alarms must be compliant and functional, and any structural integrity affected by heavy equipment or fitout works should be restored.

Managing Make Good Costs: The Hidden Expense

One of the most common surprises at lease end is make good costs. These are expenses incurred to return the premises to the condition specified in your lease, and they can include removal, repair, repainting, and even refitting certain base-building elements.

High make good costs often arise from changes made without landlord approval, wear and tear beyond “reasonable use”, structural modifications not properly reinstated, or engaging professional contractors too late.

Engaging a fitout or defit specialist early can help interpret your obligations, budget accurately, and complete works to the landlord’s satisfaction — often at a lower cost than last-minute remedial work.

Timing and Planning: Start Early

A successful retail defit is as much about timing as it is about scope. Tenants often underestimate how long it takes to remove, repair, and reinstate a space — particularly in shopping centres or multi-tenanted buildings with strict access and compliance requirements.Start planning your defit at least eight to twelve weeks before your lease expires. This allows time to review your make good clause in detail, obtain quotes, schedule contractors, secure landlord and building management approvals, and conduct a final inspection to confirm compliance. Leaving it until the final month often results in rushed work, higher costs, and unnecessary stress.

From Exit to Opportunity

While the defit marks the end of one chapter, it’s also the beginning of another. A well-executed defit not only protects your bond and avoids disputes — it leaves your business reputation intact and positions you positively for your next venture.

With the right defit checklist and expert guidance, what is often viewed as a burden can become a smooth, strategic process that protects your investment and ensures a professional handover.

How Total Fitouts Can Help

At Total Fitouts, we’ve helped countless tenants across retail, hospitality, and commercial sectors complete their defits on time and within budget. Our experienced teams understand landlord requirements, compliance obligations, and building codes — ensuring every step of the process is handled professionally.

From planning and project management through to demolition, waste removal, and reinstatement, we deliver a complete defit-to-refit solution. Whether you’re exiting a lease or preparing to rebrand and rebuild, we make the transition seamless so you can focus on what’s next for your business.

Avoid unexpected make good costs — speak to our NZ defit specialists today and plan your lease exit with confidence!