VIC Increase in Safety & Compliance Obligations in Victoria

After having spent the last month scraping off paint that was put on without primer (and I'm only half way through the house) I'm kinda paranoid right now about my tenants painting. Especially if they do it in older houses where there's lead paint and it takes you 4-5x longer to do it due to the precautions needed.

 

For stuff like this, if we can no longer refuse, after receiving a request to paint the walls, I would be replying with requesting a formal statement from the tenant as to the scope and method of works, as well as a remediation of works. So many people (not just tenants), think it's a quick trip to Bunnings for a quick DIY without considering the details. Eg. Where and how best to mount a wall bracket. How to properly paint a wall. And what is the plan to restore the works after you vacant? No one ever considers the remediation part.

 

Specifically regarding the smoke alarm compliance, with the new legislation, is a certificate of compliance (if such a thing exists) required? Do we know if these $99 services render such a certificate?

Has the new legislation really made the tenant not responsible for pressing the smoke alarm test button once a year?

 

Here is the email I received today regarding Gas Compliance.

"
We recently communicated the new Safety & Compliance obligations to commence on 29th of March and the package for Smoke Alarm & Electrical Safety Checks, until now we did not have as similar arrangement for Gas Compliance Checks.
We are now pleased to advice we have partnered with Plumbcare to provide a Gas Safety Check program which covers the following:
- Appliance Servicing: Servicing all gas appliances throughout the property as per AS4575
- Fitting Line Pressure Test: Pressure testing the consumer fitting line to all gas appliances throughout the property
- Carbon Monoxide Testing: Carbon monoxide and negative pressure testing of the heater and within the property
- Compliance report: Compliance report upon completion
This all inclusive package will be completed every 2 years at a cost of $365 plus GST per property.
Any additional required work will be quoted, however we encourage you to authorise a repair budget of $150, this will cover the most common faults eg. Faulty/broken thermostats.
Plumbcare can repair these minor issues on the spot saving you a second call out fee. After any work is completed you will receive a report along with photos to support the repairs."

Appreciate how this compares to others?

 

Hi,
I received an email from another PM.

For comparison, they quoted SmartHouse.

Yearly - Smoke Alarm Safety - $90 plus GST
Two Yearly - Electrical Safety Service - $269 plus GST
Two Yearly - Gas Safety Service - $349 plus GST

Key points:
"
Properties with new Rental Agreements entered into after the 29th March 2021 are required to schedule an electrical and gas safety service as soon as possible after the commencement of the Rental Agreement (unless an electrical and gas safety service was completed within the last 2 years).

Current tenancies have 2 years from the 29th March 2021 to schedule and perform the electrical and gas safety services.

We will schedule these services as late as possible within the 2 year period beginning 29th March 2021.
"

So I have a two year grace period to get this organised. I can only see rents going up as Landlords pass on the increased compliance costs to the tenants.

 

Could someone please point me to the relevant website(s) on when the gas and electricity checks need to be done, if I have current tenants in place? My PM said these checks should be done asap. Is this correct - because I thought they should be done when current tenants move out, at the beginning of new lease agreement? Not that I would want to delay the checks. What would happen if I have them done now, then current tenants move out, new tenants move in, do I have to do the checks again - even though they are done less than 2 years?

Appreciate any clarification. TIA.

 

As soon as practical from the 29th March, all new tenancies (including periodic agreements). Existing tenants with a fixed term lease it doesn’t apply immediately, but it’s just best to get it all sorted as soon as you can.

You don’t have to do the checks again if your tenant vacates in 6 months, they’re not dependant on the lease (except the initial start date).

If there’s works required to meet minimum standards these have their own time frames to phase in.

 

If these appliances are that risky, I would replace them with electric ones. Actually, I would probably replace them anyway with these types of running costs.

 

Do you have the contact details of NH Electricals. TIA

 

Thanks, Lil Skater, for your reply

 

It may take a while for the prices to settle down. At present it seems that fear and lack of knowledge are driving some prices. A plumber or sparkie would charge $150-200 for the first hour, and I cannot see any value in paying more. In any case, it seems that landlords have until March 2023 to get the inspections done, and if so I'm going to wait. In time, sparkies and plumbers will probably be set up to do these inspections.

 

Already have replaced a gas hot water heater in one house with electric because the gas was tooo dear and because of the ever increasing supply charge of over a dollar a day. The yearly cost is only $25 interest, less any tax deduction compared to a rising $700. Replaced a gas heater in another with reverse cycle electric that required regular servicing for an interest cost of about $60, saved over $1k in year which has been invested and now worth 1.5k, instead of having expedentially increasing costs, have expedentially increasing saving/profit. And yet RE agents try to tell me how cheap and advantageous gas is. This tells alot about the agent.

 

Shop around. My agent wanted $364 for each unit (we have six). Agent's gasfitter would not provide discount for multiple properties. I found a registered gasfitter who will carry out everything on the checklist for $200 per unit. This is for the gas check.

 

It pays to shop around. We have emailed our owners two packages from the larger companies, one all inclusive from a local company, then separate gas an electrical from a plumber and electrician (individuals rather than larger companies) - the last two came in much cheaper. Even so, some of my owners have chosen the larger companies.

We also sent out specific details to each individual owner in line with their property/s. There is a two year grace period, but that’s if your lease doesn’t change. So that’s no new leases or renewals- after the 29th to do either of those you need the compliance and your disclosure statement.

 

Most properties with mains gas will have more than 1 gas appliance (HWS, stove/oven/cooktop, heater etc) so you should ask your gasfitter how much for multiple items. I'm getting quoted $383.90 ($349+GST) for multiple gas appliances from Smarthouse.

 

Hi guys, you may have received a similar email from your property manager about new legislation requiring servicing of gas and electrical appliances every 2 years (on top of the annual smoke detector check). Please see attached PDF

Smarthouse are offering the following (inc GST):
$99 smoke alarm check (every year)
$295.90 electrical safety service (every 2 years)
$383.90 gas safety service (every 2 years)

This adds up to $778.80 every 2 years to get the 3 items attended to, and $99 every alternate year to get just the smoke detector checked. It's a lot and I will be passing some of this onto my tenants with a small rent increase.

Properties with new Rental Agreements entered into AFTER the 29th March 2021 are required to schedule an electrical and gas safety service as soon as possible after the commencement of the Rental Agreement.

However we have a 2 year grace to get this organised as CURRENT tenancies have 2 years from the 29th March 2021 to schedule and perform the electrical and gas safety services.

So if you fill in the form and consent to Smarthouse doing these checks, make sure they don't do the electrical and gas service until March 2023 (2 years from 29/03/2021)

 

Why would you sort it out soon as you can (and pay $778.80), when it can be deferred for 2 years? If we have 2 years grace, wouldn't it be smarter to get the gas and electrical check done in March 2023 if we have 2 years from the 29th March 2021 to schedule and perform the electrical and gas safety services.

 

Soon yellow vest, hardhats and safety boots will be needed for all tenants visitors and a induction in the event they dont know where exits are located and what to do when they hear any of the alarms

 

The sad thing is this will be mandatory in the near future due to us living in a nanny state

 

As a rental provider (the new legal term) why would you be paying a gas supply charge in Victoria? The tenants (or whatever the new term is) pay this.