As of 1 January 2022, all rental properties in Queensland must comply to the new smoke alarm legislation. The legislation adds several new smoke alarm requirements which can cost a landlord over a thousand dollars to install – dependent on the size of their property. Hearing this, your landlords may be reluctant to implement the changes now and choose to wait until 2021 in hopes the prices will go down. However, this may end up being extremely costly for your landlords. There are a number of factors that signal smoke alarm installation prices will spike as we move towards 2022.
Demand is Much Higher Than Supply
Under the classic demand and supply model, prices are low when supply is high and demand is low, but prices are high when supply is low and demand is high. Many landlords seem to be under the impression that installation prices will go down as the deadline moves closer. However, with 550,000 rental properties in Queensland, there are simply not enough providers in Australia to meet this demand in such a short span of time. As of 1 October 2019, there are 566 working days until the legislation needs to be implemented. This means that approximately 980 properties per day need to be upgraded to meet the deadline. Smoke Alarm Solutions is Queensland’s largest smoke alarm compliance provider and we anticipate demand will see us triple our workforce in the next 24 months.
Properties Not Upgraded by the Deadline Are Unrentable
It has been predicted that there will be a tradespeople shortage when it comes to implementing the 2022 legislation. Property managers can expect that smaller smoke alarm providers will be overwhelmed and may not have the time to upgrade all properties by the deadline. If a property is not compliant by the deadline it becomes unrentable and landlord’s insurance may be rendered void. Rental properties that don’t comply from 2022 might miss out on hundreds of dollars of rental income until they comply their property.
Rectification Costs of Using an Untrained Electrician
With respectable providers being overwhelmed, landlords may be tempted to use any regular electrician. However, the new smoke alarm legislation laws are very complex and most electricians are unaware of all the requirements. Many landlords have already attempted to upgrade their properties through untrained electricians which has led to an epidemic of properties needing rectification because the smoke alarms installed do not comply with legislation. It can cost landlords thousands of dollars in rectification work, often with all alarms requiring replacement.
By upgrading smoke alarm systems in rental properties now, landlords can avoid the 2021 rush and the price rise but most importantly be assured that they are taking the necessary steps to keep their tenants safe from the risks of house fires. For more information on upgrading your rent roll to the 2022 legislation click NEW QLD Upgrade Installation Quote & Booking below.