Water management in rental properties can sometimes be a tricky subject, especially for tenants and landlords in New South Wales (NSW). Unlike other utilities such as electricity and gas, water is always connected to the property, meaning that the landlord typically holds the responsibility for the water account. However, tenants can be required to pay for their water usage under certain conditions. In this guide, we'll break down the key aspects of water usage charges, water efficiency requirements, and responsibilities for both landlords and tenants.
Who is Responsible for Water Charges?
In NSW, landlords are responsible for paying all water supply service charges, which include sewerage supply services and any pump-out septic service charges. However, landlords can pass on the water usage charges to tenants if specific conditions are met. This creates a shared responsibility where landlords cover the fixed costs while tenants may be asked to pay for their individual water usage.
Conditions for Tenants to Pay Water Usage
According to NSW legislation, tenants are only required to pay water usage charges if the property meets the following conditions:
- Separately Metered Property: The property must have a separate water meter, or water must be delivered to the property by vehicle.
- Landlord Billing: The landlord can only charge tenants for the actual amount billed by the water supplier, and these charges cannot exceed what the landlord has paid.
- Water Efficiency Measures: The rental property must comply with mandatory water efficiency measures, which will be discussed in detail later in this article.
- Bill Transparency: The landlord must provide the tenant with a copy of the water supplier's bill, showing the water usage charges or evidence of the amount billed.
If these criteria are met, the landlord or agent must request payment from the tenant within three months of the bill being issued. Furthermore, tenants are given a minimum of 21 days to settle their water usage bill, which should be paid separately from rent.
Water Efficiency Measures
For a rental property to qualify for passing on water usage charges to tenants, it must meet specific water efficiency standards. These measures aim to reduce water consumption and promote sustainability. Below are the mandatory water efficiency measures that landlords need to follow:
- Leaking Taps and Toilets: There should be no leaking taps or toilets anywhere on the property at the start of the tenancy. Additionally, whenever water efficiency upgrades or repairs are made, this condition must be maintained.
- Shower Heads: All showerheads must have a maximum flow rate of 9 litres per minute. This ensures that water usage during showers is kept to a reasonable level.
- Internal Taps for Kitchen and Bathroom: Internal cold-water taps and single mixer taps for kitchen sinks or bathroom hand basins must also have a maximum flow rate of 9 litres per minute.
- Dual Flush Toilets: By March 23, 2025, all toilets on the property must be dual-flush models with a minimum 3-star Water Efficiency Labelling and Standards (WELS) rating. This further helps in reducing water wastage.
It's important to note that these flow rate restrictions do not apply to other taps on the property, such as outdoor garden taps, laundry taps, or taps used for washing machines and dishwashers.
How to Check Water Efficiency
Tenants who want to verify that their property meets these water efficiency standards can perform a simple test at home. By placing a bucket under a tap, turning it on fully for one minute, and measuring how much water is collected, tenants can calculate the flow rate. If more than 9 litres of water is collected, the tap or showerhead does not meet the required standard, and the landlord should address the issue.
Billing and Payment
One common challenge is that water billing periods rarely align with the tenancy agreements. This is why it is crucial to record the water meter reading at both the start and end of the tenancy. By doing so, landlords and tenants can ensure that no one is paying for water usage that occurred before or after their tenancy.
Additionally, water usage charges should always be billed separately from rent, and landlords are expected to provide tenants with a copy of the water bill for transparency.
Maintaining Water Efficiency Standards
If any of the water efficiency fixtures, such as showerheads or taps, need to be replaced during the tenancy, landlords must ensure that the new fixtures comply with the water efficiency standards. This is essential if they wish to continue charging tenants for water usage. As for toilets, landlords who upgrade their toilets should consider installing dual-flush models with a 3-star WELS rating in preparation for the upcoming March 2025 regulations.
Special Considerations: Water Tanks and Septic Tanks
Some rental properties, particularly those in rural areas, may rely on tank water or septic tank systems rather than traditional water and sewage connections. In such cases, additional rules apply:
- Water Tanks: If tank water is the only available water supply, the landlord must ensure that the tank is full at the start of the tenancy. After this, the tenant is responsible for refilling the tank as needed, provided the property meets water efficiency standards.
- Septic Tanks: For properties with septic tank systems, the tenant must cover the cost of pumping out the septic tank when it becomes full. Septic tanks are commonly used in areas where sewerage systems are unavailable.
In Conclusion
Understanding water usage charges and responsibilities in rental properties is essential for both tenants and landlords in NSW. With clear regulations around water efficiency, billing practices, and the responsibilities of both parties, managing water usage should be straightforward. Tenants should ensure that their property meets the required water efficiency measures before agreeing to pay water usage charges, while landlords must maintain compliance to continue passing on these charges. By adhering to these guidelines, both parties can enjoy a transparent and fair arrangement regarding water costs.
EMAIL | hello@c21newcastle.com.au
PHONE | 02 4943 6333
155 Pacific Highway
Charlestown NSW 2290