Can You Charge Higher Rent with a Better NABERS Rating?
Yes, you can charge higher rent with a better NABERS energy rating. Tenants now prefer buildings that use less energy. Many are ready to pay more for energy-efficient spaces. According to the Property Council of Australia, buildings with high NABERS energy ratings earn up to 20% more rent.
These buildings also face fewer vacancies throughout the year. That is not marketing fluff—it is data-backed real estate evolution in action. And many companies have made it easier than ever to get your NABERS certification done quickly, affordably, and accurately using top-tier tools and accredited assessors.
This blog explores how a higher NABERS energy rating can boost rental income, reduce vacancies, and attract quality tenants. So, let’s dig in:
What is a NABERS Energy Rating?
A NABERS energy rating is a performance score that shows how efficiently a building uses energy. It is part of Australia’s national environmental rating system for buildings. The rating uses a star scale from 0 to 6, where 6 stars mean excellent energy performance.
Here is a quick breakdown:
|
NABERS Star Rating |
Meaning |
Tenant Impact |
|
0–2 Stars |
Very Poor |
High costs, low demand |
|
3–4 Stars |
Average |
Acceptable, but not competitive |
|
5–6 Stars |
Excellent |
High demand, premium rent |
Why Does a Better NABERS Energy Rating Matter to Renters?
Tenants care about costs. A better NABERS energy rating lowers utility bills. It also reduces a building’s carbon footprint. For commercial tenants, it supports key sustainability targets. Here is what better ratings offer:
- Lower energy costs
- Better indoor comfort
- Enhanced brand perception
- Compliance with ESG reporting
A high NABERS rating in Australia is now a make-or-break metric for large companies when signing long-term leases.
Can Higher NABERS Ratings Justify Higher Rents?
Absolutely. Let us break it down.
A 2022 CBRE study found that buildings with NABERS certification command up to 9% higher sale prices and 10–20% higher rents compared to non-rated buildings.
Why? Because tenants trust the system. This way, better ratings do not just improve building performance—they directly boost perceived value. In Sydney, for instance, a 5.5-star building can generate over $70/m² more in rent compared to a 3-star counterpart.
How NABERS Certification Impacts Commercial Property Value?
A high NABERS energy rating can boost your commercial building’s value. It attracts better tenants and makes your asset more appealing to investors. Here is how it works:
- Reduced Vacancy
Tenants prefer spaces with low running costs. Energy-efficient buildings help them save. This makes them stay longer and renew leases.
- Higher Demand
Large companies now follow strict ESG goals. Many require at least a 4-star NABERS energy rating. Buildings with lower ratings often get skipped.
- Increased Asset Value
Investors look for stable, future-ready buildings. A high NABERS rating reduces operational risks. It also shows strong long-term potential.
And here is where Eco Certificates come in—they help building owners achieve these performance goals through detailed assessments, without the jargon or delays.
What Are the NABERS Rating Requirements?
Before you go rating-happy, let's discuss eligibility. Not every building can jump into NABERS certification.
Here are the NABERS rating requirements:
- The building must be at least 75% occupied during the assessment.
- A minimum of 12 months of utility data is needed.
- Certification is valid for 12 months—you will need to renew annually.
Eco Certificates makes the process simple. They collect and check all required energy data. Also, they model usage patterns and offer clear steps to improve performance before submission.
Steps to Improve Your NABERS Energy Rating (Before Asking for Higher Rent)
Want to raise your rent? Here is what you need to do first:
1. Energy Audit
Start with a full check of your building’s energy use. Look for old systems and wasteful practices. Identify what is costing you the most.
2. Upgrade Equipment
Replace outdated lights, HVAC units, and appliances. Choose energy-efficient models with strong performance ratings. Small changes here create a big impact. For example, switching from halogen to LED lighting can cut energy use by up to 75% and improve your NABERS rating significantly.
3. Smart Metering
Install real-time energy monitors. Track how much energy your building uses during the day. This gives better control and faster insights.
4. Benchmark
Use relevant tools to simulate energy use. See how your building compares to others. Get advice on how to boost your score.
5. Apply for Certification
Once improvements are complete, book a formal assessment. Submit your data. A higher NABERS energy rating can now reflect your building’s true performance.
Experts like Eco Certificates use real-time data, advanced simulation software, and assessor expertise to deliver accurate ratings that hold up during lease negotiations and DA submissions.
Is It Worth Investing in a Better NABERS Rating?
Let us flip the question. Is it worth not doing it? If you are losing premium tenants, getting underwhelming rental offers, or facing pressure from ESG investors—then you are already paying the price of a low NABERS energy rating.
Still not convinced? Here is a simple cost-to-benefit comparison:
|
Action |
Cost Estimate |
Benefit |
|
LED Lighting Retrofit |
~$20,000 |
+0.5 NABERS Star |
|
Smart HVAC Controls |
~$30,000 |
+1 NABERS Star |
|
Solar Panels |
~$50,000 |
+1–2 NABERS Stars |
|
NABERS Assessment |
~$2,500 |
Unlocks premium rent potential |
Imagine investing $30K and securing $100K+ in additional rent over 3 years. That is a win.
Real Example: How NABERS Boosted Rent in Sydney?
A property owner in Sydney's CBD upgraded an aging office building’s HVAC system and insulation. With guidance from Eco Certificates, they achieved a 5.5-star NABERS energy rating.
Results?
- Rent increased by $65/m²
- Vacancy dropped to under 3%
- Attracted long-term tenants from the tech and finance sectors
The assessment cost them under $3,000. ROI? Massive.
How Building Consultants Support Your NABERS Journey?
From first energy audit to final NABERS certification—building consultants like Eco Certificates have got it covered.
They offer:
- Accredited NABERS assessors
- Fast document turnaround
- Clear guidance on meeting NABERS rating requirements
- Support for both NABERS energy and NABERS water rating
Whether you are managing a single office or a portfolio of properties, Eco Certificates ensures every square metre counts towards better efficiency and better returns.
