What Alterations Can Commercial Tenants Make to a Property?

Director of GM Law, Mark McAvoy shares his thoughts on this matter:

1. What alterations can a tenant usually make?

In Queensland, tenants can usually only make alterations to a rental property with the landlord’s written consent unless the alteration is expressly permitted under the tenancy agreement.

If specific alterations are already authorised and detailed in the tenancy agreement, the tenant may not need to notify the landlord again before making those changes. However, if there is any ambiguity, or if additional work is intended beyond what’s listed, the tenant should seek written approval. Clear clauses in the tenancy agreement can prevent misunderstandings and legal issues later. Tenants should keep written proof of the landlord’s consent.

2. What happens if the tenant doesn’t notify about alterations?

If a tenant in Queensland makes alterations to a rental property that are not permitted under the tenancy agreement and without notifying or obtaining written consent from the landlord, they may be in breach of the tenancy agreement. This can have several legal and financial consequences.

Legal consequences:

Breach Notice. The landlord may issue a Notice to Remedy Breach , giving the tenant a reasonable period to rectify the situation — which may involve restoring the property to its original condition or seeking retrospective consent.
Security Deductions. If the tenant fails to return the property to its original state (including at the end of the lease), the landlord may be able to deduct the cost of repairs or restoration from the tenant’s security.
Termination of Lease. In serious cases — especially where structural or safety concerns arise — the landlord may seek to terminate the tenancy.

Example:

If a tenant installs a mezzanine level without approval, even if it improves the Premises, the landlord may require its removal, repairs to any damage caused, or withhold part of the security at the end of the lease until it is removed.

Best practice: Always notify and get written consent before making any changes.

3. Will the landlord agree to compensate part of the cost of alterations if they improve the appearance of the premises?

In Queensland, landlords are not obliged to compensate tenants for improvements, even if they enhance the property. Any agreement for cost-sharing or reimbursement must be clearly set out in writing in the tenancy agreement or in a signed addendum. Without this written agreement, tenants cannot claim compensation. For example, if a tenant alters partitions, a written clause should outline the scope, costs, and whether reimbursement will occur and on what terms.

4. Does the tenant have to return everything as it was after making alterations at the end of the lease?

Yes, usually tenancy agreements generally require tenants in Queensland to restore the property to its original condition at the end of the tenancy. This obligation should be clearly stated in the tenancy agreement. The contract may include a clause such as: “The tenant must, at the end of the tenancy, reinstate any alterations to the premises unless otherwise agreed in writing.” If the landlord agrees to keep the alterations (e.g. upgraded fixtures), that should also be noted in writing. Failure to restore may lead to deductions from the security.

5. What is the best way to specify a clause about alterations in the contract?

The most effective way to include alterations is through a clear, written clause that covers:

Whether alterations are permitted
The type of alterations allowed
The approvals the tenant may be required to obtain
Requirement for landlord consent
Conditions of reinstatement or retention
Allowing the Landlord to monitor the quality of work and check approvals
Any cost-sharing or compensation agreement

Example clause:

“The tenant must not make any alterations, additions, or improvements to the premises without the landlord’s prior written consent. All approved alterations must be performed by qualified tradespeople, and the tenant agrees to return the property to its original condition unless otherwise agreed in writing.”

This ensures both parties understand their obligations and helps avoid disputes.

We service the entire Brisbane metropolitan area

If you need help to get a contract sorted so you can secure a property for your client, we have set up the GM Law agent hotline.

You can email us at AgentSupport@gmlaw.com.au to get urgent personalized support.

We service the entire Brisbane metropolitan area

If you need help to get a contract sorted so you can secure a property for your client, we have set up the GM Law agent hotline.

You can email us at AgentSupport@gmlaw.com.au to get urgent personalized support.

Don't forget we offer the following:

1. What alterations can a tenant usually make?

2. What happens if the tenant doesn’t notify about alterations?

3. Will the landlord agree to compensate part of the cost of alterations if they improve the appearance of the premises?

4. Does the tenant have to return everything as it was after making alterations at the end of the lease?

5. What is the best way to specify a clause about alterations in the contract?

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