Financial Compliance 

Preface: After 20 years of building his business Precision Group, Mr Shaun Bonett (one of Australia’s Top 200 Richest People) says that the most important aspect of business in the Australian Commercial Property Sector is that it is done with a focus on substance and relationships, instead of appearances. Here he shares his insights he has acquired in building his business in Australia.

There are strict obligations on landlords in Australia under various Government Acts that govern the manner that landlords collect rent and outgoings from their tenants, undertake market reviews, and so many other aspects of property management. It is absolutely essential for a landlord to have confidence in their management team that represents them. That their manager has the relevant professional skills to ensure that they remain in compliance under the law.

In most cases, Australian laws and regulations impose processes that a landlord must comply with in their charging of rent and outgoings to a tenant of their property. The obtaining of a survey of a property that is intended to be leased, disclosure of key information pertaining to the property, and the provision of a breakdown of all outgoings to a tenant (if outgoings of a property are being recovered from a tenant) are all standard practice in Australia. In addition, the requirement for a landlord to obtain audited statements to verify that the outgoings that have been charged to a tenant are accurate is also common practice. Similarly, this is also the case with the collection of promotional funds from a tenant in a shopping centre.

Whilst Australian laws tend to be quite prescriptive on the way a landlord acts, the result of this is that the Australian property sector is a very stable and secure environment to do business in. In does require landlords to vigilantly comply with Australian laws, but the rewards of doing so over time are likely to be very favorable.

（Shaun Bonett, CEO and Managing Director of Precision Group）