VIC Increase in Safety & Compliance Obligations in Victoria

Discussion in 'Property Management' started by SydneyInvestor, 29th May, 2020.

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  1. Lil Skater

    Lil Skater Well-Known Member

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    Because it allows clients to budget accordingly for any potential large upgrades that can be quoted now, rather than last minute. I also don’t have any properties that have a fixed term lease until March 2023, and given it also applies to any tenancies rolling to a periodic agreement (same tenant) you need to ensure it’s up to date before that happens. The costs I’ve negotiated are also a lot lower than $800.

    There are some that have asked it be delayed until closer to the present lease expiry, but most are on board to do it as soon as practical for the above reasons.
     
    Last edited: 23rd Mar, 2021
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  2. kaibo

    kaibo Well-Known Member

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    My problem is by outsourcing to these companies is that there may look at remediation works as another income stream and the cost are a lot higher than the $400-$500 a year in inspection costs.

    For this reason I have told my agent that they are to use my own electrician and plumbers for this inspection and the plumber can time his gas heating/hot water system maintenance with this inspection.

    I highly recommend others to follow this path. There will be pushback from agents as these one stop shops offer convenience to THEM and potential kick backs? but at the end of the day I pay my agent to work and liasing between my trades and tenant is one of their core responsibilities
     
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  3. Barcelona

    Barcelona Well-Known Member

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    I too am wondering about kickbacks. Surely if an agent goes out to tender they'd get a better deal than$364.
     
  4. qak

    qak Well-Known Member

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    The interesting thing is nobody requires a homeowner in their own home to get these done? [I don't have gas, so not 100% sure on this, but I think gas appliances are meant to be checked periodically?]
    Why are homeowner lives less important than a tenant?
     
  5. Ronen

    Ronen Well-Known Member

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    Exactly what I'm doing.
    I'm changing the hot water system from gas to electric even tho the current system is 2 years old.

    That will allow me to get rid of gas completely.
    Less complication both to do certs and maintenance.
     
  6. rizzle

    rizzle Well-Known Member

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    Ballpark costs to get that done Ronen?
     
  7. Lil Skater

    Lil Skater Well-Known Member

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    As an agent I can assure you I don't receive kick backs (Detector Inspector). BUT my concern also was about repair costs, how often they'll find a fault etc. Which is why I went private - plus I get to support other small businesses!

    Certainly a one stop shop is easier for me, but that's not really relevant IMO
     
  8. Ronen

    Ronen Well-Known Member

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    New HWS will cost 1K
    Work I have no idea yet. The plumber is a mate and he'll do few jobs, not just that but probably $150-ish.
    Electrician is doing few other jobs as well (I bought the place few months ago and bring up to the level I'm expecting it to be).
    Need to run a line from the switchboard - probably another $200-ish.

    I'd expect 1.5K overall. Maybe selling the gas HWS on gumtree for $200 if I'm lucky (it's only 2 years old).
     
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  9. Ronen

    Ronen Well-Known Member

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    Do bare in mind, it's a freestanding house with easy access to everything.
     
  10. Pev

    Pev Member

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    I may have missed it, but the 2-year grace period from 29th March 2021 to 2023 to have the electrical and gas checks done, does this still apply if the properly is re-leased to the same tenant during this time?
     
  11. Lil Skater

    Lil Skater Well-Known Member

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    It's for any new lease.

    To have the full grace period you would have to enter a fixed term lease before the 29th March 2021 that expires after March 2023. So if you have a tenant who has a current lease expiring on or after the 29th March you have to get it done as soon as practical.
     
  12. Keentolearn77

    Keentolearn77 Well-Known Member

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    With this 2 yrly money grab for electrical and gas inspections, should this really apply to new homes, that come with. 7 yr builders guarantee.
    I’m not sure if the 7 builders guarantee covers only structural or installation of gas appliances and all electrical as well.... & if so should it then negate new homes within 7 years of build - not having to pay for inspection costs until the 7 yrs have passed.....?
     
  13. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    Because their is a severe rental shortage, tenants share houses, it is messy and not practical to charge tenants for gas separately.
     
  14. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Why is Detector Inspector charging to certify the gas and electrical annually if only required every 2 years?

    I'm also trying to understand why the first year's fee is so much higher, their website is vague: "In the first year, all three services must be provided in order to certify your property's compliance and so the first year's fee reflects that". There was mention of 70 pages of paperwork but surely..?
     
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  15. kaibo

    kaibo Well-Known Member

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    No Commission for my agent, I know the agencies plumber and have confirmed he was offered the job but had to turn it down as it is relatively low margin and has a lot of paperwork. Also it's common for agencies to have 100's of rental properties and no regular plumbing company could commit to that (There is a trade shortage as we all know and most domestic plumbers work in small teams of less than 5)
     
  16. dap

    dap New Member

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    Regarding this grace period, where can I find it stated in the Residential Tenancy Regulations? My agent has informed me that I need to provide all certification to them by 30th April 2021. The current one year lease started early this year.
     
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  17. Lil Skater

    Lil Skater Well-Known Member

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  18. SumitK

    SumitK New Member

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    I also got an email and found it very expensive. any updates on people in Geelong who can do at lower cost.
     
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  19. SumitK

    SumitK New Member

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    how much they charge for all 3 services?
     
  20. Owlet

    Owlet Well-Known Member

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