Commercial Outgoings Audit Quotes – Strata & Property

What is a Commercial Outgoings Audit?

A commercial outgoings audit is an independent examination of the operating expenses charged by landlords to commercial and retail tenants. Under most commercial lease agreements, tenants contribute to building outgoings – expenses like council rates, water rates, insurance, cleaning, security, and property management fees. An outgoings audit verifies that these charges are accurate, properly calculated, and comply with the lease terms.

Many commercial leases, particularly those governed by retail lease legislation, give tenants the right to request an outgoings audit annually. This protects tenants from overcharging and ensures transparency in expense allocation.

What Outgoings Can Be Audited?

Common outgoings that can be verified through an audit include:

• Statutory outgoings: Council rates, land tax, water and sewerage charges
• Insurance: Building, public liability, and landlord's insurance
• Building services: Cleaning, security, waste removal, pest control
• Maintenance: Repairs, gardening, lift maintenance, HVAC servicing
• Management fees: Property management and administrative costs
• Utilities: Common area electricity, gas, and water (where applicable)
• Capital works contributions: Sinking fund or replacement fund levies

Why Request an Outgoings Audit?

Commercial tenants should consider requesting an outgoings audit when:

• Outgoings charges have increased significantly year-on-year
• Charges seem disproportionate to the premises size or usage
• The landlord has not provided sufficient documentation
• You suspect expenses are being allocated to the wrong cost centre
• Your lease specifically entitles you to an annual audit

Studies have shown that outgoings audits frequently identify overcharges ranging from 5% to 20% of total outgoings billed, making the cost of an audit a worthwhile investment for most tenants.

Tenant Rights Under Retail Lease Legislation

Each state's retail lease legislation provides specific rights regarding outgoings:

• Landlords must provide itemised outgoings estimates before lease commencement
• Actual outgoings must be reconciled annually with estimates
• Tenants have the right to request supporting documentation
• Many states allow tenants to request an independent audit at the landlord's expense

Outgoings Audit Costs

Outgoings audit fees typically range from $1,500 to $5,000 depending on the complexity of the lease, size of the premises, and the number of expense categories being reviewed. For larger tenancies or shopping centre leases with complex expense allocations, fees may be higher.

In many cases, if the audit identifies overcharges, the recoveries will significantly exceed the audit cost. Some auditors work on a contingency basis, charging a percentage of recovered amounts.

Get Your Outgoings Audit Quotes

Post your commercial outgoings audit job on AuditLink for just $39 inc GST. Receive 3-6 fixed-price quotes from auditors experienced with commercial lease compliance within 24-48 hours.