In April 2016 the rules around property management changed. Changes to the Health and Safety at Work Act (HSWA) have given extra duties to property owners and managers alike to ensure that the wellbeing of all property stakeholders is protected while maintenance work is being carried out.
Under the new legislation, property owners and managers are deemed to be Persons Conducting a Business or Undertaking (PCBU). This means that they are responsible for the health and safety of everybody involved with, or affected by, maintenance work carried out on a property under their care.
Whether it’s due to wilful damage, careless negligence or general wear and tear, every so often repairs and maintenance must be carried out. For residential landlords, this means your property will temporarily become a work site, and as PCBU you will be held directly responsible for what happens on your property. Reckless conduct that exposes people to risk of serious injury carries a penalty of five years in prison, a $600,000 fine or both, while simply failing to comply could result in a fine between $100,000 and $300,000.
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When it comes to a landlord health and safety obligations, it’s your responsibility to ensure the tradesman or contractors carrying out the work are appropriately experienced and qualified to do so. If you hire a family friend who’s handy on the tools to carry out electrical work and someone is injured, then you as the landlord can be held directly responsible. This is because the family friend was not sufficiently qualified.
This doesn’t mean you must become an expert in all the trades and watch over contractors to ensure they’re doing everything correctly. This is not something you can directly influence or control. Whoever you hire becomes PCBU and is responsible for ensuring there are no health and safety risks arising from their work. Just make sure you hire qualified, experienced tradespeople who have the skills to do the job, and you’ll be covered.
It’s also your responsibility to ensure that contractors and tradespeople are sage when on your rental property. Are there dogs or any other animals that have to be restrained so they can gain access? Is there anything the contractor should know beforehand or may need from you in order to perform the work they were hired to do? These precautions are to protect the wellbeing of the contractors and are directly within your influence and control.
Tenants only have responsibilities under the HSWA when work is being carried out on the property, and as landlord it’s your duty to inform them of this. Tenants are required to take reasonable steps to protect their own wellbeing, and the wellbeing of those around them. They must also follow reasonable health and safety instructions given by contractors working on the property. For instance, if a contractor needs to be shown where the fuse box or water mains are, or if they ask the tenant not to use an electrical switch while they’re working on something. If a tenant goes against what a contractor has reasonably asked them to do, then they will be liable under the HSWA, not the contractor and not you, as the landlord.
Some of it may seem like common sense, but the HSWA has made it law. So long as you hire qualified tradespeople, and take all reasonable precautions to keep them and your tenants safe, you can protect yourself when your rental property becomes a workplace.
Download our free guide to learn how to avoid other risks associated with managing your rental property.
