Published: August 13, 2026丨Author: Capital Business Centre Editorial Team丨Estimated Reading Time: Approximately 8–10 minutes 丨Suitable for: Hong Kong SME owners, startup founders, Chief Operating Officers (COO), and heads of foreign company representative offices in Hong Kong
In Hong Kong, a fast-paced international financial centre, flexibility and efficiency are essential for business survival. Many SMEs, startups, and project teams of multinational companies initially choose to move into a Hong Kong Business Centre, Serviced Office, or co-working space precisely because of the advantages of “ready-to-use, flexible lease terms, and comprehensive facilities.”
However, all good things come to an end. When business expansion requires relocation to a larger space, or when the lease expires and operational strategies need adjustment, many corporate administrators and business owners suddenly discover that moving out of a business centre is far more complicated than expected.
> “Do minor scratches on the walls need to be repainted when moving out?”
> “Do we have to dismantle the glass partitions we installed ourselves?”
> “Why is the management office deducting several thousand Hong Kong dollars in move-out cleaning fees from our two-month deposit?”
These questions play out almost daily in major commercial buildings across Hong Kong. Reinstatement disputes in the commercial leasing market often stem from tenants confusing the boundaries of reinstatement responsibilities between “traditional offices” and “business centres.” To help you avoid the various “hidden pitfalls” during the move-out process, this article provides an in-depth breakdown based on local Hong Kong leasing legal practices, practical case principles, and industry insights, complete with a step-by-step cost-saving operation manual to safeguard the full return of your deposit!
To avoid move-out disputes, the first step is to understand the soul of a commercial lease—the Make Good / Reinstatement Clause.
In Hong Kong’s traditional commercial building leasing market, landlords typically hand over premises in “Bare Shell Condition.” This means tenants receive only concrete floors, original ceilings, and unfinished walls upon move-in. Therefore, at the end of the lease, tenants must bear extremely strict “Bare Shell Reinstatement” obligations—they must dismantle at their own expense all self-built partitions, carpets, lighting fixtures, and even fully restore the ceiling and walls to the building’s original condition. This work often costs tens of thousands or even hundreds of thousands of Hong Kong dollars.
In contrast, business centres and serviced offices are usually delivered “Fully Furnished & Fitted-out.” As a result, their reinstatement requirements are relatively more lenient—but this does not mean tenants have no responsibilities at all.
In standard English contracts for business centres, the reinstatement clause is commonly referred to as:
• Make Good Clause
• Reinstatement of Premises
• Yield Up Condition
The core requirement of a business centre reinstatement clause is usually: “Upon vacating, the tenant must restore the Private Office to the condition as handed over at the commencement of the lease, subject to reasonable wear and tear arising from the passage of time.”
In other words, if during the tenancy you made any unauthorised or even authorised minor alterations to the room (e.g., nailing to hang pictures, installing wall-mounted shelves, applying company brand logo stickers, or changing electrical layouts), you are responsible for restoring them to their original condition before moving out. Otherwise, the management office will arrange for the work to be done and deduct the related costs from your Security Deposit.
To give you a clearer understanding of move-out costs, we have compiled the five core challenges most frequently encountered by tenants of Hong Kong business centres, analysed from legal, customary practice, and practical operational perspectives.
Not necessarily. If the condition falls under “reasonable wear and tear” due to natural ageing over time, payment is usually not required. However, if there is drilling, adhesive residue from stickers, man-made scratches, or unauthorised changes to wall colour, the tenant must bear the cost of repair or repainting.
“Wall damage and repainting” ranks as the number-one source of disputes when vacating a business centre. To determine who bears the cost, three levels must be examined:
Level 1: Does it constitute “Reasonable Wear and Tear”?
According to Hong Kong leasing legal practice, wall ageing that occurs naturally over time is generally considered an operating cost that the landlord or business centre should bear itself, and they are not entitled to demand that the tenant pay for a full-room repaint. Examples include:
• Natural yellowing or slight fading of wall paint caused by prolonged exposure to sunlight.
• Very light marks left by the back of an office chair rubbing against the wall under normal use.
• Fine cracks in the wall caused by natural minor settlement of the building structure.
Level 2: In which situations must the tenant “definitely” bear repainting or repair costs?
If the walls show the following man-made signs, the business centre is entitled to require the tenant to carry out the repairs themselves or to deduct the corresponding engineering costs from the deposit:
Private drilling and nailing: Holes left from installing TV mounts, whiteboards, company logos, or wall-mounted shelves.
Sticker and adhesive residue damage: Use of double-sided tape, strong adhesive tape, or brand wall stickers that cause paint peeling or leave difficult-to-remove glue marks when removed.
Serious man-made soiling: Residual coffee or beverage spills, or dents and corner damage caused by collisions when moving large furniture.
Unauthorised change of wall colour: Painting the walls in the company’s brand colours (e.g., black, dark blue, or red) without the management office’s written consent. Upon move-out, the walls must be repainted at the tenant’s expense back to the original standard white or beige.
Level 3: Comparison of Common Repainting Charging Models Among Hong Kong Business Centres
| Type of Business Centre | Repainting Approach | Cost Estimate & Explanation |
| Premium Executive Centre (High-end Serviced Office) | Most contracts already include basic administrative / move-out cleaning fees; ordinary repainting is usually not charged separately if there is no serious damage | If there is obvious drilling or damage, charged on a per-point basis or repaired at the designated contractor’s fixed price |
| Budget / Economy Business Centre | Terms are stricter; contracts commonly stipulate a fixed “Make Good / Wall Renovation Fee” upon move-out | Usually charged as a one-time repainting fee based on room size |
| Co-working Space (Dedicated Desk / Hot Desk) | Fixed desks or flexible seating do not require bearing repainting costs | Only need to clear personal items and keep the desk tidy; no wall reinstatement issues |
Yes. In principle, all “tenant-funded additions” must be removed and reinstated, unless prior written exemption has been obtained from the management office.
Many companies make moderate alterations during occupancy for privacy or functional needs. Common items include: glass partitions, additional locks on private office doors, extra track lighting, dedicated network cabling, company nameplates/signage, and wall-mounted screens.
Common scope of removal responsibility:
Self-purchased furniture and appliances: Ergonomic chairs, air purifiers, mini-fridges, private security cabinets, etc., brought in by the tenant must all be removed. Left-behind items will be treated as rubbish, and the business centre will charge high disposal fees (typically starting from HK$500–$2,000 per item).
Network and IT infrastructure: If the tenant previously arranged for a dedicated ISP to install private routers or server racks, engineering staff must be arranged upon move-out to dismantle and clear the cabling.
Company signage and frosting film: Company name stickers, metal nameplates on office doors or glass partitions, or privacy frosting film applied to glass must be completely removed before departure, and the glass thoroughly restored to a clean condition using adhesive remover.
Structural alterations or fixed equipment: Such as adding walls, modifying ceilings, raising floors, or installing wall-mounted TVs and projector brackets—these must be dismantled, nail holes filled, and walls repaired.
⚠️ Industry Hidden Rules & Negotiation Tips:
Even if your alterations were previously approved in writing by the management office, the lease will often still state that “the premises must be restored to original condition upon lease expiry.” This is because “approval to carry out works” is not the same as “exemption from reinstatement.”
However, if the quality of your alterations is very high (for example, high-quality transparent glass partitions or premium carpet), the next tenant may very much like them. It is recommended that you proactively approach the Community Manager 30–45 days before the end of the lease to enquire whether the premises can be handed over on an “As-is Condition” basis. This can often save you several thousand Hong Kong dollars in dismantling costs!
The core of move-out disputes often stems from differences in perception between the two parties regarding “natural wear and tear” versus “man-made damage.” To avoid relying solely on verbal claims, mastering industry-standard comparison benchmarks is crucial:
▪ Carpet and Flooring:
Reasonable wear and tear: Natural compression marks from prolonged foot traffic, reasonable abrasion from normal walking, and slight fading.
Abnormal damage: Large-area staining from coffee or concentrated ink, burn marks from cigarette butts, or tears and dents caused by dragging heavy objects. (Remedy: Pay for deep cleaning or partial re-carpeting costs.)
▪ Complimentary Office Desks and Chairs:
Reasonable wear and tear: Natural sinking of gas-lift cylinders over time, slight loosening of mesh under normal use, and very minor surface friction on desktops.
Abnormal damage: Broken armrests, knife scratches on desktops, or severe irreversible stains. (Remedy: Full compensation or deduction of replacement part costs from the deposit.)
▪ Door Locks and Door Panels:
Reasonable wear and tear: Insertion marks from normal use of keys or access cards, and normal loss of lustre on door handles.
Abnormal damage: Man-made damage to access control locks, loss of keys requiring full lock cylinder replacement, or dents in the door panel from collisions. (Remedy: Tenant bears the full cost of lock replacement and door repair.)
⚖️ Legal Tip: He Who Asserts Must Prove
Although under Hong Kong leasing legal principles the party claiming damages (the business centre) bears the burden of proof, the most effective protection for the tenant is to take high-resolution photos and videos of the entire premises on the first day of check-in and require the management office to record existing defects on the Check-in Inspection Form. This original documentation will become the most powerful weapon against unreasonable claims upon move-out.
In Hong Kong, business centres typically collect 2 to 3 months’ rent as a performance deposit. Upon move-out, many tenants are most concerned about the deposit being delayed without reason or being subject to unreasonable deductions.
To protect your rights, be sure to master the following three legal and practical details:
1. Principle of Contractual Primacy
Hong Kong courts and the Small Claims Tribunal strictly follow the principle of “contract supremacy” when handling leasing disputes. If your lease clearly states: “Upon move-out the tenant shall pay a fixed move-out cleaning and wall renovation fee of HK$1,500,” then even if you leave the office in pristine condition, this clause remains legally valid and the fee cannot be waived. Therefore, carefully reviewing the terms at the time of signing is the first step.
2. Deposits Cannot Be Unilaterally Offset Against the Final Month’s Rent
Unless the contract contains an explicit special clause authorising it, tenants have no right to unilaterally declare that “the final month’s rent will be offset against the deposit.” If a tenant arbitrarily stops paying the final rent, the business centre is entitled to issue a lawyer’s letter, charge interest on arrears, and even record the matter, which may affect the company’s credit reputation.
3. Deposit Refund Timeline and Depreciation Calculation Principle
Standard leases usually stipulate that after the tenant has fully returned the premises and settled all outstanding charges (such as extra printing fees, meeting room bookings, and telephone charges), the management office must refund the remaining deposit balance within 30 working days.
⚠️ The Small Claims Tribunal’s “Depreciation Principle”:
Suppose the business centre’s carpet is already 4 years old (approaching the typical 5-year depreciation life of commercial carpet). If the tenant accidentally stains the carpet, the business centre cannot demand that the tenant pay 100% of the cost of a brand-new carpet. When adjudicating, the Tribunal will only support “compensation for residual value after depreciation” or “reasonable cleaning costs.” Understanding this point gives you stronger leverage when negotiating.
To ensure a flawless relocation process, it is recommended that corporate administrators and operations teams strictly follow the following 30-day golden preparation timeline before move-out:
30 Days Before Move-Out (Contract Review Period):
– Verify the “Notice Period” in the lease (generally 1 to 2 months) and ensure that a formal written notice of termination in the standard format has been sent.
– Re-read the Make Good clause carefully to confirm whether there is a “designated contractor” requirement or a “fixed move-out cleaning fee.”
14 Days Before Move-Out (On-Site Pre-inspection):
– Proactively invite the business centre’s Community Manager for an on-site walkthrough.
– Itemise on the spot any items that need repair and clearly ask: “Do these wall marks need to be handled by us, or will you deduct the costs and handle them yourselves? How is the fee calculated?” This avoids last-minute surprises.
3 Days Before Move-Out (Self-Repair & Deep Cleaning):
– For small screw holes or drill holes, purchase DIY wall filler (Spackle) to fill and sand them smooth.
– If stickers have left adhesive residue, use a professional adhesive remover spray (such as 3M citrus-based remover) to clean thoroughly.
– Clear out all self-purchased furniture and miscellaneous items to avoid high Disposal Fees.
Move-Out Day (Handover & Evidence Preservation):
– After completing the move, take high-resolution photos and videos of all four walls, the ceiling, the floor, and the complimentary desks and chairs (be sure to enable the timestamp function on your phone).
– Jointly confirm the condition of the room with management staff, sign the Handover Form, and request a copy on the spot.
14 to 30 Days After Move-Out (Deposit Follow-Up):
– Proactively follow up with the finance department on the refund progress and request a complete “Statement of Account” together with any deduction invoices (if applicable).
Answer: First, never engage in private verbal arguments. Immediately request that the management office provide a detailed quotation / itemised invoice from a third-party contractor. Next, retrieve the photos taken on your check-in day for comparison to prove that the damage was “pre-existing” or constitutes “reasonable wear and tear.” If the two parties cannot reach a consensus, first issue a formal written Complaint Letter. If the amount is substantial and the other party is making unreasonable deductions, you may file a claim with the Hong Kong Small Claims Tribunal, which offers simple procedures and very low costs.
Answer: Absolutely yes. Whether in a commercial building or a business centre, any destructive installation on walls, ceilings, or floors (including nailing, drilling, or altering electrical wiring) requires prior written consent from the management office. It is recommended to prioritise using damage-free hooks or freestanding display stands (Roll-up Banner / Standing Signage) to completely avoid wall repair costs upon move-out.
Answer: The fixed move-out cleaning fee typically covers professional carpet vacuuming, basic desktop disinfection, rubbish bin clearance, and standard carpet steam cleaning in preparation for the next tenant. Please note: the move-out cleaning fee usually does not cover man-made wall touch-up painting, disposal fees for large abandoned furniture, or specialised chemical cleaning of large areas of serious staining.
Answer: Never treat the business centre as a rubbish dump. Business centres usually regard left-behind items as “abandoned waste” and engage external cleaning companies for disposal. The related costs (including labour and landfill disposal fees) will be deducted directly from your deposit and often range from HK$1,000 to HK$3,000—far higher than the cost of arranging your own removal service.
In summary, whether you need to bear repainting or removal costs when moving out of a Hong Kong business centre depends primarily on “whether there has been man-made alteration / damage” and “the specific provisions of the lease.” As long as you carefully review the Make Good clause when signing the contract and properly manage photo records and timeline milestones during occupancy and relocation, you can significantly reduce the risk of disputes upon move-out and ensure that operating funds are smoothly returned.
As a leading flexible workspace provider in Hong Kong, we fully understand the high demands that SMEs and startups place on cost control, operational efficiency, and transparency of terms. We are committed to providing every client with the most worry-free and secure office experience.
Therefore, whether you are currently facing questions about move-out reinstatement or are looking for a highly cost-effective Hong Kong business centre or serviced office with clear and transparent terms, our professional workspace consultants are ready to provide you with free consultation services at any time!
