Commercial property ownership and management come with a myriad of responsibilities. Among the most critical are compliance obligations—requirements that ensure safety, environmental health, and legal transparency. Falling short on these responsibilities can lead to hefty fines, reputational damage, or even legal action. In this blog, we’ll unpack the key compliance areas for commercial properties and provide practical insights to help you stay ahead.

General Compliance Obligations

1. Maintaining an Asbestos Register

Under workplace health and safety laws, commercial properties built before 2004 must have an up-to-date Asbestos Register. This document identifies the location and condition of any asbestos-containing materials (ACMs) within the property. A compliant register ensures:

• Regular inspections are conducted.
• Any identified ACMs are appropriately managed or removed by licensed professionals.

Failing to maintain this register can put occupants at risk and expose property owners to significant penalties. The register must be reviewed and updated at least every five (5) years (in NSW).

2. Fire Safety Compliance and AS1851 Updates

Fire safety regulations are ever-evolving to ensure the protection of property and human life. AS1851, the Australian Standard for the routine service of fire protection systems and equipment, has undergone recent updates to align with modern safety practices, with enforcement of these requirements coming into effect from February 2025.

A couple of key changes include:

• Enhanced testing and maintenance schedules for fire systems.
• Improved documentation requirements for compliance records.

Commercial property managers can assist Landlords to ensure that fire safety equipment—such as sprinklers, alarms, passive fire systems, hose-reels and extinguishers—is routinely serviced by qualified professionals. Keeping detailed records of inspections is also essential for demonstrating compliance.

You can read more detailed information about the changes under AS1851 on the fire industry association website at www.fpaa.com.au.

3. WHS Obligations: Managing Hazards and Risks

Workplace Health and Safety (WHS) laws require property owners and managers (as well as tenants, as they are in effective control of a workplace) to identify and mitigate hazards that could pose risks to tenants, employees, and visitors. This includes:

• Conducting regular risk assessments.
• Addressing issues like poor lighting, uneven flooring, or unsafe building materials.
• Providing accessible emergency exits and clear safety signage.
• Urgently action repairs of damage that could lead to serious injury or loss of life.

A proactive approach not only ensures legal compliance but also fosters a safe and welcoming environment for all occupants.

Sector-Specific Compliance

The Retail Leases Act

For properties or tenancies subject to the Retail Leases Act, The Act imposes additional obligations to promote transparency and fairness. Among these are:

• Disclosure: Landlords must provide tenants with a ‘Lessor Disclosure Statement’ before they enter into a lease, setting out all the key information about the lease terms and the property, including any costs that the tenant should expect to incur under the lease.
  
  
• Outgoings Budgets: Landlords must provide tenants with an annual estimate of property outgoings and what proportion of those outgoings are payable by the tenant.
  
  
• Outgoings Reconciliations: At the end of the financial year, reconciliations must be supplied to tenants, detailing actual costs incurred versus estimated costs, with any resulting adjustments made as appropriate. With this requirement there may be an additional requirement for the outgoings to be independently audited (depending on what outgoings are recoverable).
  
  
• Notice Periods: Landlords are required to adhere to strict notice periods for various things under the Act. Examples are the time frame for supplying both outgoings budgets and reconciliations, or how much notice an owner must give to their tenant if they do not intend to offer them a new lease term.

Non-compliance with these requirements can lead to disputes and undermine tenant trust, as well as a breach of the legislation, which may carry financial implications. Clear communication and accurate record-keeping are vital to meeting these obligations.

Upcoming Legislation Changes

Staying ahead of legislative changes is crucial for maintaining compliance. In the coming years, we expect to see:

• Tighter environmental standards for building materials and energy usage.
• Enhanced WHS requirements addressing new workplace risks, including mental health concerns.
• Additional scrutiny for Fire Safety of commercial buildings, furthering the requirements to adhere to and enforcement of same.

Property managers should actively monitor regulatory updates and seek professional advice to understand their implications. Proactive preparation—such as upgrading outdated systems or implementing new safety measures—can save time and resources in the long run.

Best Practices for Ensuring Compliance

1. Conduct Regular Audits
   Schedule periodic reviews of your property to identify and address compliance gaps. Engaging third-party experts can provide an unbiased perspective.
   
   
2. Partner with Specialists
   Collaborate with professionals in fire safety, asbestos management, and WHS compliance to ensure your property meets all requirements.
   
   
3. Keep Tenants Informed
   Open communication with tenants is key to fostering a collaborative approach to compliance. Share updates, provide clear documentation, and address concerns promptly.
   
   

Conclusion

Compliance in commercial property isn’t just a legal obligation—it’s a cornerstone of responsible ownership. By proactively managing risks, staying informed of regulatory changes, and engaging experts, you can protect your property, your tenants, your financial risk and your reputation.

Navigating compliance can be complex, but with the right strategies, you’ll ensure your property remains safe, compliant, and attractive to tenants. When in doubt, seek professional advice to guide you through the ever-evolving landscape of commercial property compliance.

If you are looking for assistance in managing your commercial property, please contact our team and we will be happy to help.