BLOX Commercial

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.

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

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

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.

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.

In NSW, 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.

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.

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 commercial or retail leasing to ensure that your lease is tailored to your specific needs and requirements.

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.

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.

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.

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.

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.

10 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 minimise 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, minimise vacancy rates, handle emergencies, and provide peace of mind.

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.

The rental amount on a gross lease is inclusive of all outgoings. The 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, so contact one of our Leasing Executives to discuss the various options.

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 pro-rata basis.

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.

Depending on the length of 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.

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.

The average lease is between 30 and 70 pages long. While 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.

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.

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.

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

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.

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 are fully covered. The Your Commercial team can refer you to a broker should you wish to seek professional advice.

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.

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).

Typically, it's 3 - 6 months in the current market, however it may be longer depending on the lease term and how much incentive you are getting.

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.

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.

There are 3 main ways to buy real estate in Australia:

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.

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.

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.

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.

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.

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.

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.

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

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.

In 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.

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.

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.

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.

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.