If you are, (and particularly if you own an older rental property), there’s an important date coming up that may affect you.

Whilst many investors have already addressed this issue, it’s important to keep in mind that all residential rental properties are required to have modern-style electrical switchboards installed by March 29th this year. Modern rental properties are likely to have this already installed, however some older properties will need an update in order to comply with the laws.

Under the Residential Tenancy laws in Victoria, any property that started a new lease or had a lease converted from fixed term to periodic since 29 March 2021 is subject to these new minimum standards, so it’s likely that close to 100% of rental properties in our area are affected.

The law states that as of March 29th 2023, rental properties must have modern-style switchboards with circuit breakers and safety switches for all power outlets and lighting circuits. The word from some of our suppliers is that close to 20% of rental properties around Melbourne are likely require a switchboard upgrade to meet this mandatory requirement.

From our perspective, most rental providers have already authorised these works in anticipation of the deadline. However, for those who have been delaying this decision, you need to be aware that there are significant penalties for noncompliance if your property does not meet this requirement by the deadline in March.

The updated laws allow renters to terminate their lease without notice or penalty prior to moving in. Alternatively, a current renter can request an immediate switchboard upgrade as an “urgent repair” and incur up to $2,500 in costs if the agency or owner fails to respond to that request. The rental provider can also incur financial penalties for renting out a property that doesn’t meet minimum standards, with penalties ranging from $11,000 and $55,000.

As we get closer to March 2023 there is likely to be a rush on equipment and qualified tradespeople, potentially creating delays. So we would urge you to contact your Property Manager as soon as possible to check if your property needs an upgrade as this will help to avoid delays on getting works done.

Remember, if you have any questions at all regarding your specific rental property or the broader rental market in the City of Hume, don’t hesitate to give us a call this week at Barry Plant Gladstone Park on 9330 1088.

Cheers,

Nick Pugliese - Sales Manager

and Bill Karp - Director

Barry Plant Real Estate

Gladstone Park