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Compliance requirements from 29th March 2023

Investors / Investment
23 November 2022
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As you are likely aware, there are additional requirements for modern-style switchboards that rented properties need to meet as of the 29th March 2023.

Any property that has started a new lease or had a lease converted from fixed term to periodic since 29 March 2021 is subject to minimum standards under the RTA. For most rental portfolios, this likely means close to 100% of properties.

From 29 March 2023, those properties must have modern-style switchboards with circuit breakers and safety switches for all power outlets and lighting circuits.

According to Detector Inspector data, 20% of managed properties likely require a switchboard upgrade to meet this RTA mandatory requirement.

There are significant penalties for noncompliance that RRPs need to be made aware of in the event that their properties fail to meet this requirement by 29 March, 2023:

The penalties:

Renters can terminate the lease without notice or penalty prior to moving in. In a current lease, the renter can immediately request a switchboard upgrade as an “urgent repair” and incur up to $2,500 in costs if the agency fails to respond to that request; and for the rental provider, the RTA provides financial penalties for renting out a property that doesn’t meet minimum standards, with penalties ranging between $11,000 - $55,000.

Most property owners have now signed up for Gas, electrical and smoke alarm services that are carried out by a third party. Through this process you may have received a quotation to upgrade your switchboard but have not given the go ahead, thinking you have plenty of time. We expect there will be a rush on trades and supply chain issues on stock, as we get to March 2023 and thus we urge you to approve quotations as soon as possible or to contact your Property Manager if you are unsure if your property requires an upgrade, this will help to avoid delays on getting works done.

Investors / Investment
23 November 2022
Save Article

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