Tag Archives: The $1500 Cost Looming Over Landlords

Electrical Switchboard Upgrades, Victoria: The $1500 Cost Looming Over Landlords

In the dynamic landscape of property ownership, landlords face a myriad of challenges and responsibilities. One recent development in Victoria, Australia, has stirred significant concern within the landlord community. It’s the mandatory electrical switchboard upgrades, accompanied by an estimated cost of $1500 per property. This blog delves into the implications of this mandate and the financial pressures it imposes on landlords across the state.

The Mandate: Enhancing Safety Standards

Landlords and rental providers face a pressing deadline, with only three months remaining to secure an additional $1000 to $1500 per property for the essential upgrade of outdated switchboards. This urgent need arises from Victoria’s impending electrical safety regulations, which mandate the installation of modern switchboards equipped with circuit breakers and residual current devices.

The significance of this requirement is underscored by the prevalence of older properties still equipped with antiquated panels and fuse boards or federal fuse boards. Additionally, they do not meet the new minimum standards. In essence, the deadline marks a pivotal moment for landlords to ensure compliance and prioritize the safety of their tenants by investing in the necessary upgrades.

Balancing Act: Landlord Dilemmas

In response to the mandate, landlords are confronted with a challenging dilemma. They must decide whether to absorb the cost and potentially erode profitability or pass the burden onto tenants through increased rent. This balancing act underscores the nuanced considerations at play for landlords navigating the compliance process.

If You Don’t Upgrade What Will The Consequences?

If you fail to complete the necessary switchboard upgrade by the deadline, then it carries significant consequences. Your investment property will be classified as unsafe and non-compliant for rental purposes, rendering it ineligible for lease.

Should you proceed with leasing the property without the required switchboard, it would fall short of meeting the minimum safety standards. In such a scenario, your tenant could classify the issues as urgent repairs, prompting immediate action at your expense if you choose not to address them.

Furthermore, the tenant reserves the right to terminate the lease agreement or postpone their move-in date, seeking compensation for expenses like hotel accommodations incurred during the delay. Additionally, VCAT (Victorian Civil and Administrative Tribunal) may impose hefty penalties, potentially costing thousands of dollars.

What Are The Requirements For Switchboard Upgrades?

According to the new regulations, switchboards must adhere to specific criteria.

  • They must be equipped with circuit breakers and electrical safety switches, commonly referred to as residual current devices (RCDs, RCCBs, or RCBOs).
  • The circuit breaker must conform to AS/NZS 3000 standards for wiring, while the electrical safety switch must comply with AS/NZS 3190, AS/NZS 61008.1, or AS/NZS 61009.1 standards.
  • These additions serve to safeguard against electrical hazards. They prevent damage to wiring caused by current overloads.
  • Additionally, they mitigate the risk of electrocution by cutting off power in case of abnormal current flow.
  • Given the diverse range of switchboards found in properties based on their age, there exist various methods to upgrade a switchboard to meet regulatory compliance.
  • This variation necessitates flexibility in the approach to ensuring that switchboards align with the mandated safety standards.
  • Furthermore, failure to comply may result in the voidance of your insurance coverage if an accident occurs while the property is rented out.
  • Given these potential consequences, the risk of non-compliance far outweighs any perceived benefits, making the switchboard upgrade a prudent and necessary investment.
  • Moreover, where the property is equipped with a fuse board rather than a switchboard, simply adding the necessary components may not suffice.
  • In such scenarios, replacing the fuse board becomes imperative.
    It necessitates the installation of a new switchboard complete with circuit breakers and electrical safety switches across all circuits.
  • This comprehensive upgrade extends to power outlets, lighting fixtures, as well as fixed appliances such as cooking equipment, hot water units, and air-conditioning systems.

How To Schedule A Switchboard Upgrade?

Upgradation falls upon the rental provider to ensure that their rental property meets compliance standards. It is essential to engage a licensed or registered electrician to inspect or upgrade the switchboard. Property managers are encouraged to inform their landlords about the impending legislation and coordinate the inspection or upgrade of the switchboard accordingly. If as a landlord you are not capable of handling the cost then you can also opt for solar power.

While the $1500 cost presents a formidable challenge for many landlords, it underscores the importance of prioritizing safety and investing in the longevity of rental properties. Moreover, by navigating this new terrain with collaboration and support, stakeholders can ensure the safety and well-being of tenants.