If you manage my property, can a tenant pay rent directly to me as the Landlord?

In order to effectively manage your tenant's rent payments, chase arrears, serve notices, pay any maintenance organised by us, and more - we recommend we collect the rent into our trust account and then disburse it to you. Without this, we are unable to keep track of what is being paid and when. 

Is it hard to transfer my property to be managed by Your Commercial?

All we need is your name, email and investment property address to get started. We handle the entire transfer process. If your previous managing agency agreement requires a notice period, we’ll give that notice on your behalf. The industry standard is only a 30 day period, but we recommend you check your management agreement. We start managing your property once that notice period has ended.

Is it expensive to transfer my management?

No, there is no cost involved to transfer your property management. Talk to our property management team today to start the process. 

When does the outgoings reconciliation need to be done in Queensland?

In Queensland, Australia, the reconciliation of outgoings for a retail or commercial lease is typically required to be completed within three months after the end of the financial year. The specific time frame and requirements may vary depending on the terms of the lease agreement, so it's important to review the lease and relevant legislation to ensure compliance.

It's also important to note that the timing of outgoing reconciliation may be impacted by various factors such as the complexity of the lease, the availability of information, and the cooperation of all parties involved. It's advisable to consult with a legal professional or experienced property manager for guidance on meeting the requirements and managing the process effectively.

When does the outgoings budget need to be done?

The timing for preparing an outgoing’s budget for a new financial year may vary depending on the terms of the lease agreement and applicable laws.

In some cases, the lease agreement may require the landlord to provide the tenant with a proposed outgoings budget for the upcoming financial year at least 30 days prior to the commencement of that year. This allows the tenant time to review and provide feedback on the proposed budget before it becomes final.

In other cases, there may not be a specific timeframe specified in the lease, but it's generally recommended to provide the proposed outgoings budget to the tenant as soon as possible before the start of the new financial year to allow for adequate planning and budgeting.

It's important to review the lease agreement and consult with your property manager to ensure compliance with the relevant legislation and terms of the lease.

What is an outgoings budget?

An outgoings budget is a document that estimates the expenses that a landlord will incur in relation to the operation and maintenance of a property and apportions these expenses among the tenants of the property. The amount payable is based on the costs incurred from the year before. The specific items that are included in an outgoings budget may vary depending on the nature of the property and the terms of the lease agreement.

Do you need to provide a tenant with a monthly rental invoice?

In Queensland, there is no specific legal requirement to provide a tenant with a monthly rental invoice. However, it is a common industry practice to provide tenants with regular rental invoices for transparency and clarity in regards to the rent and any other charges they may be required to pay.

In most cases, the lease agreement between the landlord and tenant will specify the terms of rent payment, including the frequency and method of payment. 

It's important for both parties to comply with the terms of the lease agreement to avoid any misunderstandings or disputes.

If the tenant requests regular rental invoices, the landlord or property manager should be able to provide these within a reasonable timeframe. In addition, the lease agreement may also require the landlord to provide the tenant with a receipt or statement of account upon receiving any payment from the tenant.

What are some common dos and don'ts for a retail or commercial lease in Queensland?

DOs:

• DO make sure that the lease is in writing and signed by both parties.
• DO ensure that the lease includes all terms and conditions, including rent, outgoings, maintenance responsibilities, and the length of the lease.
• DO make sure that you understand all of the terms and conditions of the lease before signing.
• DO negotiate the lease terms and conditions with the landlord to ensure that they are fair and reasonable.
• DO ensure that the lease complies with all relevant legislation, including the Retail Shop Leases Act 1994 (QLD).

DON'Ts:

• DON'T sign a lease without seeking legal advice from a solicitor who is experienced in commercial or retail leasing.
• DON'T assume that the lease terms and conditions are standard - they can be negotiated to better suit your needs.
• DON'T forget to factor in additional costs such as rent increases, outgoings, and other expenses when calculating your overall costs.
• DON'T ignore the maintenance and repair responsibilities outlined in the lease agreement, and in particular the make good clause for when the lease ends.
• DON'T delay in addressing any issues that arise under the lease, such as rent disputes or maintenance concerns.

It is important to remember that every lease agreement is unique and has its own set of requirements. It is recommended to seek professional advice from a lawyer or property manager with experience in commerical or retail leasing to ensure that your lease is tailored to your specific needs and requirements.

Why must your option period be exercised within the time frame provided for in the lease agreement.

1. It avoids the risk of losing the option to renew: Typically, a lease agreement will include a specific time frame, typically between 6-3 months before the lease ends, during which you can exercise your option to renew. If you fail to do so within the required time frame, you may lose the option to renew, and the landlord may be free to rent the property to someone else.
2. It provides certainty: By exercising your option period within the time frame provided, you can ensure that you have a continued right to occupy the property for the agreed-upon period. This can provide you with a level of certainty and stability in your business planning.
3. It may give you negotiating power: If you exercise your option period within the time frame provided, you may be in a stronger negotiating position to negotiate the terms of the lease, including the rent and other lease provisions.
4. It can avoid legal disputes: If you fail to exercise your option period within the required time frame, you may be in breach of the lease agreement, which can lead to legal disputes with the landlord.

In summary, exercising your option period within the time frame provided is important to avoid the risk of losing the option to renew, provide certainty and stability, and potentially give you negotiating power. It is always best to carefully review the lease agreement and to seek legal advice if you have any questions or concerns about exercising your option period.

What is property management?

Property management involves the operation, control, and maintenance of a property on behalf of the owner, including managing tenants, collecting rent, and overseeing maintenance and repairs.

Ten reasons why a landlord should have a property manager.

1. Finding and screening tenants: Property managers are experts in marketing, screening and selecting tenants, which can help ensure that a Landlord's property is occupied by reliable tenants. The Property Manager will have your best interest in mind when chosing the tenant, as your best interest is their best interest. If a bad tenant is chosen the Property Manager is just increasing their workload.
2. Collecting rent: Property managers have systems in place for collecting rent from tenants, which can help ensure that landlords receive rent payments in a timely and consistent manner. The trust account systems should produce all the required paperwork a tenant will require related to their rental payments including receipts and rental statements.  Not only that a Property Manager will ensure that they are regularly chasing outstanding rents, which a Landlord may not have the time to do.
3. Handling maintenance and repairs: Property managers can handle maintenance and repair requests from tenants, coordinate repairs with vendors, and ensure that the property is well-maintained. They will have a list of well rounded and vetted tradesmen across all issues a property might encounter.
4. Enforcing lease agreements: Due to the experience and knowledge Property Managers must have to carry out their day to day job, they can help enforce lease agreements, which can help protect landlords from legal disputes with tenants.
5. Handling tenant complaints: Property Managers can handle tenant complaints and concerns, which can help ensure that tenants are satisfied and stay in the property long-term.
6. Managing finances: Property Managers can keep track of income and expenses related to the property, provide regular financial reports to the landlord, and handle tax-related issues.
7. Staying up-to-date on local laws and regulations: Property Managers are knowledgeable about local laws and regulations related to property management, which can help ensure that the landlord is in compliance with all applicable laws.
8. Minimising vacancy rates: Property Managers can help minimize vacancy rates by marketing the property effectively, keeping it well-maintained, and ensuring that tenants are satisfied.
9. Handling emergencies: Property Managers can handle emergencies and urgent requests from tenants, which can help ensure that the property is well-maintained and tenants are satisfied.
10. Providing peace of mind: Property Managers can provide landlords with peace of mind by handling all aspects of property management, so they can focus on other areas of their life or business.

In summary, a Property Manager can help landlords find and screen tenants, collect rent, handle maintenance and repairs, enforce lease agreements, manage finances, stay up-to-date on local laws and regulations, minimize vacancy rates, handle emergencies, and provide peace of mind.

What are the primary duties of a property manager?

The primary duties of a property manager include finding and screening tenants, collecting rent, managing maintenance and repairs, handling tenant complaints, and enforcing the terms of the lease agreement.

What is a lease agreement?

A lease agreement is a legal contract between a landlord and tenant that outlines the terms of renting a property, including the rent amount, lease duration, and responsibilities of both the landlord and tenant.

What is the difference between a commercial and residential lease?

A commercial lease is used for renting commercial properties, such as offices or retail spaces, while a residential lease is used for renting residential properties, such as apartments or houses. Different legislation applies to the leases. Commercial leases can vary depending on the lawyer who has drawn them up and the terms agreed in the lease, whereas a residential lease is standardised across the state. Residential leases are intended to provide property rights for daily living, whereas.  commercial leases are intended for business use and contain fewer protections for the tenant and must be negotiated carefully.

What is a security deposit?

A security deposit, also referred to as a bond or bank guarantee, is a sum of money that a tenant pays to the landlord to cover any damages or unpaid rent that may occur during the lease term.

What is rent arrears?

Rent arrears are payments that a tenant has failed to make on time or has not made at all.

What is an eviction?

An eviction is the legal process of removing a tenant from a property due to non-compliance with the terms of the lease agreement or failure to pay rent.

What is a property inspection?

A property inspection is a visual examination of the property to assess its condition and identify any maintenance or repair needs.

What is a property inspection?

A property inspection is a visual examination of the property to assess its condition and identify any maintenance or repair needs.

What is a maintenance request?

A maintenance request is a request made by a tenant to a property manager or landlord for maintenance or repair work to be carried out on the property.

What is a property appraisal?

A property appraisal is an evaluation of a property's market value conducted by a licensed valuer.

What is a strata manager?

A strata manager is a professional who manages the administrative, financial, and maintenance aspects of a strata-titled property on behalf of the owners' corporation.

What is a body corporate?

A body corporate is a legal entity that represents the owners of a strata-titled property and is responsible for managing the common areas and amenities of the property.

What is a tenancy agreement?

Also known as a Lease, a tenancy agreement is a legal contract between a landlord and tenant that outlines the terms of renting a property, including the rent amount, lease duration, and responsibilities of both the landlord and tenant.

What is a notice to vacate?

A notice to vacate is a legal document served by a landlord to a tenant, requiring them to vacate the property by a specified date.

What is a lease renewal?

A lease renewal is the process of renewing a lease agreement between a landlord and tenant, often with revised terms and conditions.

What is a market analysis?

A market analysis is an assessment of the current and projected market conditions, trends, and rental rates for a specific type of property in a particular location.

What is a property condition report?

A property condition report is a detailed document that outlines the condition of a property at the beginning and end of a lease agreement, including any pre-existing damage or defects.

What is typically included in an outgoings budget?

Typical items that may be included in an outgoings budget for a commercial or retail property in Australia are:

• Maintenance and repair costs for the property and its common areas, excluding capital works (unless agreed to in the lease)
• Insurance premiums for the property and its contents
• Property management fees
• Rates and taxes, including council rates, land tax and water rates (note land tax cannot be applied to retail leases)
• Utility expenses, such as electricity and gas
• Security expenses, such as security patrols or CCTV
• Cleaning costs for common areas
• Pest control expenses
• Fire protection system maintenance and testing and other compliance servicing
• Landlord's legal expenses related to the property

The lease agreement should specify the basis for apportioning these expenses among the tenants, such as a fixed percentage of the total expenses, or a proportion based on the area of the premises leased by the tenant.

It's important to note that the specific items and the apportionment method for an outgoings budget can vary depending on the property, location, and lease agreement. It's advisable to consult with a legal professional or experienced property manager to ensure compliance with the relevant legislation and terms of the lease, and to accurately reflect the actual expenses incurred for the property.

What is included in outgoings?

Outgoings consist of costs associated with the running of the commercial property or tenancy such as: council rates, insurance premiums, water/utilities bills, land tax, management fees, scheduled maintenance, compliance servicing, repair costs and any non-capital expenditure. The payable amount is an estimate of the next year’s outgoings, based on the actual costs of the previous year.

The rental amount on a gross lease is inclusive of all outgoings, whereas the rental amount on a net lease is not, and the outgoings can be charged on top of the rent payable. Outgoings will either be invoices, or charged on a prorata basis.  

How are commercial leases paid?

Commercial leases are typically paid by the month and are payable one month in advance. All leases state the ways rent is payable, so please check your current lease agreement.  

How much is a commercial lease deposit? Is it required?

Depending on the length of the lease, and the agreement made between parties, a deposit may be required. Please check with your agent, the agreement to lease, or the lease agreement for your specific tenancy. 

How much space do I need?

Every business has their own unique requirements. Speak to one of our Leasing Executives today.

What is a gross lease vs a net lease?

The rental amount on a gross lease is inclusive of all outgoings. Thee rental amount on a net lease does not include outgoings which are charged on top of the rent payable either via a set monthly amount or as and when invoices are received. There are different net lease structures available, contact one of our Leasing Executives to discuss the various options. 

Is my lease a "Retail Shop Lease" and why does that matter?

A lease will be a “Retail Shop Lease” if it meets the criteria set out in the Retail Shop Leases Act. If you are a retail tenant, you may gain additional rights and protection, provided under the Act, if certain criteria are met. If you are a landlord, you have a number of obligations and limits under the Act. If these obligations and limits are breached, it can result in severe consequences, for example the tenant walking away in the first six months of the lease, or your annual rent increases being ineffective, etc. We recommend you consult with one of our Leasing Executives to ensure your lease is right for you. 

Do I need to engage a lawyer to assist with a new lease?

The average lease is between 30 and 70 pages long. Whilst some of the lease clauses will be relatively standard, other clauses may be detrimental to you. Many short “standard form” leases are unsuitable and could potentially not meet your requirements, or not contain important elements. It is recommended you engage a lawyer or solicitor to assist you. They will be able to explain to you the important clauses and advise you of any undesirable clauses which should be amended. If you have any specific requirements your lawyer or solicitor can ensure that these are inserted into the lease. YourCommercial has great working relationships with solicitors, and are able to put you in touch with one that will meet your needs. 

What is a Lease?

A lease is a document setting out the relationship between landlord and tenant. A lease dictates key information, such as the amount of rent and the length of the term (and any options). The lease will also contain clauses that address other events such as default by the tenant, installing and removing the fit out.

Are the terms of a lease negotiable?

All terms of a lease are negotiable, prior to the lease being executed. 

Is it possible to renew a commercial lease?

If there is a lease option included in the lease agreement, a tenant will have the right to renew the lease at the end of the term. If there is no lease option included, the tenant cannot renew the lease. However a tenant and landlord could agree to continue the tenancy on whatever terms they may agree upon.

What are lease options?

Lease options allow tenants, upon meeting certain conditions, to renew their tenancy for an additional period of time at the end of the original term. A lease option does not impose any obligation to renew. 

Can the agreed terms of a commercial lease be changed?

A lease can be changed, only if both the landlord and tenant are in agreement of the proposed changes, and a variation of contract is executed by both parties.

Do commercial tenants have to pay building insurance?

The lease agreement should state who is responsible for arranging and paying for the building insurance. The landlord has the ability to arrange and pay for the building insurance but then pass on the costs (or an appropriate proportion of the costs) to the tenant, should they choose to do so. 

Is a tenant covered for a fire or flood situation?

In most cases, tenants are responsible for obtaining their own commercial property insurance. This insurance should usually cover the tenant’s portion of the building, including things such as structural walls and fixtures. Tenants are also responsible for insuring their inventory, company’s assets and potentially more. We suggest consulting an insurance broker to ensure you and your company is fully covered. The Your Commercial team can refer you to a broker should you wish to seek professional advice. 

What is a landlord responsible for in a commercial lease?

A commercial landlord is responsible for all the fixtures and fittings they own, ensuring these are all safely installed and maintained properly. A commercial lease agreement usually states clear guidelines of what each party is responsible for. 

Who pays utilities in commercial leases?

It is common practice that the tenant in a commercial lease pays both: its own outgoings (e.g. telephone, electricity and gas); and. the landlord’s outgoings (e.g. rates, taxes and levies).

What amount of bond or bank guarantee should I pay for a new lease?

Typically it's 3 - 6 months in the current market, however it may be shorter or longer depending on the lease term and how much incentive you are getting. Some Landlords will want enough security to cover the incentive amount.

What are the costs associated with selling a property?

A property transaction is associated with different costs and expenses, some of which are commonly unknown, and many which are tax deductible when selling a commercial property. A prior understanding of the costs can help you plan your budget effectively. Each property could be different, but some of the common expenses you must account for when buying property are:

• Stamp duty

• Fees and charges related to obtaining a mortgage

• Search costs

• Conveyancing fees

• Agents fees

• Advertising fees

• Taxes and rates over the period for which you will own the property

We recommend you speak to your financial adviser or accountant for the specific details.

When is an ATO ‘Clearance Certificate’ required?

If a property exceeds $750,000 + GST all Australian residents need to produce an Australian Tax Office (ATO) ‘Clearance Certificate’. If this is not provided, 12.5% of the purchase price will be withheld at the settlement of the property. 

When is GST payable when a commercial property is sold?

Typically, GST is payable on the sale of a commercial property if the property is occupied, however, some exceptions can apply. Please consult your solicitor and accountant for professional, tailored advice. 

What are the common four ways to sell commercial property?

There are 4 main ways to buy real estate in Australia 

1. Private treaty - when the vendor, or seller, sets the price they would like to sell their property for and their real estate agent negotiates individually with prospective buyers to achieve a sale price as close to this as possible. 
2. Auction - a public sale conducted by a licensed auctioneer. Properties are offered up for bid and if the reserve price is reached the property is sold to the highest bidder. Typically, the property is sold at Auction with no conditions to be met.  
3. Tender and Expression -  of Interest are processes when buyers must submit a single offer, typically along with a 5% or 10% deposit, and it is either accepted or rejected by the vendor.
4. Privately - Selling a house privately is an option for all homeowners across Australia. If you choose to sell your own house or apartment, understanding the steps involved is important, there are various legislative requirements for a sale and/or purchase. While some homeowners love the sound of selling their house without an agent and saving on the commission, having an expert who is skilled at the process can make a huge difference to the final sale price. 

What is stamp duty?

Stamp duty is a charge which is applied by state governments in Australia and is in relation to the transfer of land or property. The State Government charges may vary depending on the purpose of the property purchased. We recommend speaking to your accountant for professional advice of the total amount payable.

How does Your Commercial achieve the best sale price?

We've developed a recognised sales strategy to maximise the return on your property. It starts with understanding your goals as the Vendor, discussing ways to increase your property’s value and present it in the best possible way, to selecting the right marketing strategy, and rolling out the sales campaign. Every small detail can make a huge difference.

What is a property appraisal?

A property appraisal is an informal process that provides the property owner with an estimated market value of your property. One of our Sales Executives will do a comparative market analysis, looking at similar properties that have sold, along with current competition, wider market trends and the key features of your property.

What are fees / commissions?

Commission or fees is the payment an owner makes to the agency for successfully selling their property. All good agencies will ensure they secure their income by working extremely hard, and always in the best interest of their Vendor. A sales fee is generally 3% + GST of the selling price. Your selling Agent should provide you with regular feedback throughout the sale process. The feedback should be constructive towards the successful selling of your property. All inspections should be accompanied by a qualified agent. 

What are the costs associated with buying a property?

A property transaction is associated with different costs and expenses, some of which are commonly unknown. A prior understanding of the costs can help you plan your budget effectively. Each property could be different, but some of the common expenses you must account for when buying property are:

• Stamp duty
• Fees and charges related to obtaining a mortgage
• Search costs
• Registration fee
• Conveyancing fee
• Moving costs
• Taxes and rates over the period for which you will own the property

We recommend you speak to your financial adviser or accountant for the specific details. 

What is a cooling-off period?

There is a clause in a contract called the ‘cooling-off period’. This clause allows the buyer to have a change of heart and cancel the contract. During this period, the seller is unable to sell the property to another buyer. A cooling-off period does not apply if you have successfully bid at a property auction, or if the clause has been removed from the contract prior to execution. 

What is a Strata Title?

A Strata Title is a type of ownership where an individual or company owns separate ‘lot or lots’ within a property and shares ownership of all common areas. A ‘lot’ is essentially the unit of ownership within a commercial property, such as an office space or retail space. Owners will generally have to pay a strata levy to cover the general maintenance and management of common areas which is commonly managed through a Body Corporate Manager.

What is a buyer’s agent?

A Buyer’s Agent is hired by the buyer, acts exclusively on the buyer’s behalf and is paid by the buyer. The Agent helps the buyer identify properties suited to their needs, organises inspections, negotiates the selling price and contract, and monitors the contract from sale to settlement.

When should you organise insurance when purchasing a property?

While it is not necessary to have insurance until settlement, it is recommended  buyers organise insurance from the time of contract being signed. In Queensland the standard commercial contract of sale form identifies that the property is at the risk of the buyer from 5pm on the next business day after the contract date.  If you are purchasing a strata titled commercial property the insurance may be included via the body corporate.

What are the benefits of investing in commercial real estate?

Commercial real estate can offer several advantages over residential real estate, including higher potential income, longer lease terms, and the ability to negotiate lease terms and rent increases.

How is the value of commercial real estate determined?

The value of commercial real estate is typically based on its current income/potential income, the condition of the property, and the location.

A potential investor will want to know what their return on investment (ROI) is when looking at a potential purchase. The ROI or yield is calculated as a percentage based on the property’s sale price and running costs versus the income received from the property (often between 5-10%). For example, if the property is expecting a sales price of $1,000,000 with an income of $100,000 the yield would be 10%. It’s important to remember that yield doesn’t take into account any increases or decreases in the property’s value over time.

How long does it take to sell a commercial property?

The length of time it takes to sell a commercial property can vary depending on several factors, such as the condition of the property, the location, and the state of the market. It is best to work with a professional commercial real estate agent to get an accurate estimate.

What are some common financing options for commercial real estate?

Financing options for commercial real estate include traditional mortgages, commercial real estate loans, SBA loans, and private funding.

What are some common due diligence tasks when buying a commercial property?

Due diligence tasks when buying a commercial property include property inspections, financial analysis, zoning and land use reviews, and tenant lease reviews.

Should I work with a commercial real estate agent when buying or selling a property?

Yes, it is recommended to work with a professional commercial real estate agent who has the expertise and knowledge to guide you through the process and help you make informed decisions.

What are the different types of commercial properties?

Commercial properties can include office buildings, retail spaces, industrial facilities, warehouses, apartment complexes, hotels, and more.

What are the important factors to consider when buying commercial property?

Some important factors to consider include the property's location, condition, zoning and land use regulations, potential for income, tenant occupancy and lease agreements, and financing options.

How do I find the right commercial property for my needs?

It is recommended to work with a professional commercial real estate agent who can help you find properties that meet your specific needs and criteria.

What is due diligence and why is it important when buying commercial property?

Due diligence refers to the process of thoroughly evaluating a property before finalizing the sale. This can include inspections, financial analysis, lease reviews, and more. Due diligence is important to ensure that the property meets your expectations and to identify any potential issues or risks.

What are the financing options for buying commercial property?

Financing options can include traditional mortgages, commercial real estate loans, SBA loans, and private funding. It is recommended to work with a commercial real estate lender to determine the best financing option for your needs.

What are the potential risks and challenges when buying commercial property?

Risks and challenges can include unexpected expenses, tenant turnover, zoning or land use changes, and changes in the local market or economy. It is important to work with a professional commercial real estate agent and conduct thorough due diligence to minimize these risks.

What is the process for making an offer and closing the sale?

The process can vary depending on the property and location. It typically involves making an offer, negotiating the terms of the sale, conducting due diligence, securing financing, and closing the sale with the help of a real estate attorney and other professionals. It is important to work with a commercial real estate agent who can guide you through the process.

How important is position in regards to a commercial property?

In the terms of commercial property, position plays a significantly different and sometimes more complex role than residential. The importance of location is relative to the type of business operating in the property. A property in close proximity to public transport, with good parking facilities and other amenities will generally demand higher rental prices. Position should always factor before the superficial aspects of a property. A modern fit-out in a retail setting will do nothing if the property is in an undesirable location. Poor foot traffic might lead to tenants leaving and longer periods of vacancy. However, an industrial property that manufactures product will need to be in close proximity to major road/transport links.

What is a WALE?

The Weighted Average Lease Expiry (WALE) is what underpins commercial property value. It’s one of the most important pieces of information an investor should use when considering a property. WALE is the average time in which all the leases for a property will expire. Or to put it another way, the average time each tenant leases the property for. A WALE of 5+ years is ideal, as it indicates that vacancy rates won’t be an issue in the short term.

What is the Commercial Building Disclosure (CBD) Program?

The CBD Program requires energy efficiency information to be provided in most cases when commercial office space of 1000 square metres or more is offered for sale or lease. The aim is to improve the energy efficiency of Australia's large office buildings and to ensure prospective buyers and tenants are informed. It was established by the Building Energy Efficiency Disclosure Act 2010  (BEED Act) and is managed by the Australian Government.

Buildings are a major energy consumer, and account for almost one quarter of Australia’s emissions. Improving building energy efficiency is one of the quickest and most cost-effective ways to reduce Australia’s greenhouse gas emissions and help mitigate the effects of climate change.

What is a Building Energy Efficiency Certificate (BEEC)?

Most sellers and lessors of commercial office space of 1000 square metres and more will be required to obtain a BEEC before their building goes on the market for sale, lease or sublease.

BEECs are valid for up to 12 months and include:

• A National Australian Built Environment Rating System (NABERS) Energy for offices star rating for the building

• A Tenancy Lighting Assessment (TLA) of the relevant area of the building.

Standard energy efficiency guidance information previously included on the last 6 pages of the BEEC is now provided online. This includes information on how building owners and tenants might improve a building's energy efficiency.

Only CBD accredited assessors can apply for BEECs on behalf of building owners or lessors. See Find an accredited assessor. For more details about BEECs, see Get and use a rating.

What is a NABERS Energy for offices rating?

The Commercial Building Disclosure (CBD) Program requires sellers and lessors of commercial office space to obtain a NABERS Energy for offices rating for their building. The NABERS Energy for offices rating can be either a whole building or a base building rating.

NABERS is a national rating system that measures the environmental performance of Australian buildings. The CBD Program integrates the NABERS Energy for offices rating into the information disclosed to prospective buyers and tenants of large commercial office spaces.

NABERS is managed by the NSW Office of Environment and Heritage on behalf of the Australian, state and territory governments.

For more information on NABERS, see www.nabers.gov.au.