Mandatory switchboard upgrades

Mandatory switchboard upgrades From March 29, 2023, the minimum standards for rental properties in Victoria require that switchboards have safety switches for all power outlets and lighting circuits.

The issue Any property that has started a new lease or had a lease convert 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.

The minimum standards require that, from 29 March, 2023, rental properties must have modern style switchboards with circuit breakers and safety switches for all power outlets and lighting circuits.

Fire brigades respond to more than 300 domestic electrical fires each year and the number of electrocutions are much higher.

Safety switches are an important form of protection that can turn off the power within 0.03 of a second where there’s a problem saving people’s lives.

Did you know? ~20% of your managed properties likely require a switchboard upgrade to meet this RTA mandatory requirement1.

1.

On average, where Detector Inspector completes an electrical

safety check, ~20% of properties require an upgrade to the switchboard to meet the minimum standards required by 29 March, 2023.

What’s at stake?

As the agency, your duties under the RTA include: •

To ensure that properties you rent out meet and maintain minimum standards at all times;

•

That you respond immediately to any request that qualifies as an “urgent repair” or compensate the renter for works they arrange; and

•

That you engage providers to carry out the urgent repair work that are suitably qualified to return the property to the minimum standard.

In the context of switchboards at your rental properties, this means that both you and your rental provider expose yourselves to a range of risk and possible penalties if action isn’t taken.

For example, if a switchboard hasn’t been upgraded at 29 March, 2023, renters can terminate the lease without notice or penalty prior to moving in. In any current lease, from that date, the renter can 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.

For any lease signed after 29 March, 2023, the consequences could be greater, with penalties for renting out a property that doesn’t meet minimum standards attracting fines of $11,000 for individuals and $55,000 for companies2.

2.

Section 65A of the Residential Tenancies Act (Vic) 1997 states that a residential rental provider must ensure that rented premises comply with prescribed rental minimum standards on or before the day on which the renter enters into occupation of the premises.

What’s the process to upgrade a switchboard?

Where Detector Inspector has completed its comprehensive electrical safety check, the requirement for a switchboard upgrade will have been identified, as well as any additional work required at the property.

We can also upgrade the switchboard at properties that have not yet had an electrical safety check, though there are some important things to be aware of (see below).

To upgrade the switchboard, one of our employed, qualified and trained electricians will disconnect the power to the property. The installation usually takes around 2 hours to complete.

Once completed, the power cannot be reconnected to the switchboard unless and until the work has been signed off by a qualified electrical inspector. This is an ESV requirement and failure to complete this step could be unsafe, renders the upgrade noncompliant and exposes you and the rental provider to potential breach of duty under the RTA and fines of up to ~$55,000 per breach.

By engaging Detector Inspector for the switchboard upgrade, we’ll guarantee same day reconnection in almost all cases. The only exceptions would be where the switchboard upgrade process uncovers asbestos or other pre-existing faults not previously identified.

Important points to note 1.

Sometimes, the upgraded switchboard will be a different size to the existing one. This may require patching and painting that is excluded from our service and would be the responsibility of the owner.

2. The introduction of safety switches may uncover pre-existing faults in the

electrical wiring, fittings or appliances that will incur additional costs for owners to rectify.

3. Asbestos was used in many switchboards prior to 1990. Where asbestos is

identified in the existing switchboard, a specialist asbestos contractor must be engaged to make it safe.

4. Your renters will suffer some inconvenience due to power outage at the

property. We will make this clear to them but your support to ensure they understand the importance of these works being carried out as scheduled, minimising cancellations, is greatly appreciated.

Our solution Starting at $539 +GST. All switchboard upgrade quotations include associated inspector’s fees and prescribed certificates (as required) 6-year workmanship guarantee and a 2-year manufacturer’s warranty on all products Guaranteed same-day reconnection3 following an upgrade

5% multi-property discount when an owner upgrades 4 or more properties 105 employed electricians who can perform critical upgrades at scale right across Victoria 3.

By engaging Detector Inspector for the switchboard upgrade, we’ll guarantee same day reconnection in almost all cases. The only exceptions would be where the switchboard upgrade process uncovers asbestos or other pre-existing faults not previously identified.

Factors driving price A number of factors contribute to the customised pricing for each property: •

The number of modules required;

•

Whether an earthing upgrade is needed;

•

Where there are pre-existing faults in the electrical wiring, fittings or appliances.

Some of these may only be uncovered following the introduction of safety switches; and

•

The presence of asbestos. Where asbestos is identified as present in the existing switchboard, a specialist asbestos contractor must be engaged to make it safe.

Next steps For properties that have had an electrical safety check, a quote for a switchboard upgrade will have been provided if required. Your account manager can send you a list of properties and associated quotes to fast track the process.

For any property that hasn’t had an electrical safety check, we must act quickly to identify whether upgrades are required prior to 29 March, 2023.

Request a meeting with your account manager to put together a plan of action.

Emily Varga emily.varga@detectorinspector.com.au 0499 008 989

Lexie Wegener lexie.wegener@detectorinspector.com.au 0458 111 051

Nicolas St Flour nic.stflour@detectorinspector.com.au 0429 149 494

Anna Reardon anna.reardon@detectorinspector.com.au 0488 766 896

Ellianna Gillham ellianna.gillham@detectorinspector.com.au 0487 555 127

Joel Gocs joel@detectorinspector.com.au 0438 222 533