Smoke Alarm industry faces stock challenges as the deadline fast approaches.
Every Queensland property investor should be aware of the December 31st deadline to have their rental properties compliant to new smoke alarm legislation.
Our property managers have been very proactive over the past two years, encouraging our clients to approve their upgrade ahead of time to avoid delays and price rises. In fact, our proactive approach has resulted in 85% compliance of properties under our management.
For those property owners who haven’t yet approved the upgrade quotes, the smoke alarm industry has a timely warning for you.
Many smoke alarm suppliers and manufacturers rely on global supply chains to manufacture and ship their products. The ongoing COVID-19 pandemic has slowed transportation and imposed domestic and international border restrictions, causing challenges with smoke alarm stock shortages across Queensland.
Of great concern is the fact that only 55% of all Queensland rental properties have been upgraded. Therefore, as the deadline approaches, hundreds of thousands of property owners will be scrambling to have their properties upgraded.
The current industry average wait time for a 2022 upgrade is 4-6 weeks and the stock challenges may increase this timeframe.
‘What happens if my smoke alarms are not upgraded by January 1st 2022?’
Once a lease agreement ends, you will not be permitted to enter into a fixed term lease unless your property is upgraded. This applies to lease renewals AND new tenancies.
Current tenancies will default into a periodic agreement with little security for owners, as the tenant can leave at any time with 2 weeks’ notice.
If a tenancy ends, you will not be permitted to place new tenants until the property is upgraded. Obviously, the concern is a reduced rental income while your property sits vacant.
As we expect smoke alarm installers to be booked to capacity next year, your loss may become significant.
‘I’m ok – my tenants have just signed a 12-month lease so I can wait until then to upgrade.’
Unfortunately, we can never be 100% sure that a tenancy will run full term because a tenant can apply to end their agreement early (‘Break Lease’) at any time. If this happens from January and your property isn’t upgraded, it could be vacant for weeks while you wait for a contractor with sufficient time and stock to perform the upgrade.
For those who have been waiting for the right time to act – that time has come. Ensure your tenants are safe, your property is protected, and your rental income is secured.
Approve your upgrade NOW so we can all sleep easier.