Hi
With utility charges set to soar over the next decade I think landlords should be looking to factor this into rental agreements going forward so that tenants pay for what they use. The current one that generally gets paid for by landlords is water, which really needs to be covered by the tenant and can be passed on under NSW legislation changes made a couple of years ago.
I've got one under this arrangement via a very active manager but the others agents I use don't seem to be that interested – not surprising because it probably just means more work for them.
Does any one out there actively push this with there agents and what experiances have they had?
Feedback would be appreciated.
Thanks
TheBish
G'day Bish,
All of my tenants here in WA pay for their water usage and rightly so, wish I could get them to pay the rates aswell!!!
Regards,
Fitzer.
I have IPs in Brisbane. The legislation states that the landload must provide a certain number of kilolitres of water per quarter, and anything they use above this, they must pay for. My agent is supposed to be monitor this for me and charge the tenant for the usage. but it has never happened. I dont look, i just file the rates notices away every time they come. Meh
Definitely standard practice in NSW – I'd hammer my agents if they weren't diligent in managing the lease. If they are not recouping water consumption from the tenant, then advise them you want it out of their fees as they aren't doing their job.
anybody know who pays water usage and rates in melbourne rental properties – is it the landlord or tenant?
is it house or units diedre? We have a house in Victoria and it is like another utility bill for the tenant, however we pay it on the provisio that they keep the plants alive. With units, we only paid for usage when we were tenants – the landlord must have paid sewerage and connection.
Thanks for the feedback and input everyone.
I think I'll be making sure this is all incorporated in the rental agreement when I get the next change over in tenants and make sure the agent follows through.
If water charges are going to increase faster than rent going forward I want to make sure my net return isn't impacted.
Thanks again
I have a place in Redbank Plains and I jsut forward on the rates notice to the Property manager and they collect teh water charges from teh tenants, been like this for the past 18 months now. I think you can only recoup the water charges if the property meets water guidelines ie. water tank, low flush toilets and shower heads etc.
In NSW , landlords need a water meter for each tenant in order to charge for water.
Some old flats and multiple occupancy premises have a shared meter for a number of tenants, which doesn't allow tha landlord to charge for water, at least not legally anyway, and without a meter, charges can't be enforced by Tribunal.. Need to get those meters installed.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
In Qld, the new act came into play April 1st, 2009 it states that:
If the property is 3 star wells water efficient (by a plumber, providing a compliancy certificate) then the tenant can pay FULL water consumption, around Brisbane it costs about $200-$400 (depending on how big your property is etc) and this is a one off payment.
If the property is not 3 star wells water compliant, then the tenant must pay for the reasonable amount of excess water (normally anything over 75kl per quarter or 100kl per person, per day).
I would contact your local agency or residential tenancies agent to ask the question for any other state though.
I have a couple of properties in Adelaide and in both cases I pay for the connection and basic allocation however always get tennants to pay any "excess" – I think its fair and encourages them to be "water wise" which just makes sense.
deirdre browne wrote:anybody know who pays water usage and rates in melbourne rental properties – is it the landlord or tenant?In Victoria in a set of flats/units/town houses where there is not a separate water meter per unit the landlord is responsible for paying for rates/service charges/usage. If there is a separate water meter per unit or the rental is a house then the landlord is responsible for the rates and service charges and the tenant is responsible for usage where the bill is sent to them directly.
The NSW Residential Tenancies Act 2010 and its associated Regulation took effect on 31st of January 2011 (incidentally there are over 100 changes and effect existing tenancies as well as new ones).
Landlords will be required to make premises ‘water efficient’ if they wish to charge tenants for water usage.
Water efficiency measures required for payment of usage charges by tenants: s 39 (1) (b) of Act – The prescribed water efficiency measures that residential premises are required to contain before a tenant can be required to pay water usage charges for the premises are as follows:
a) all showerheads on the premises must have a maximum flow rate of 9 litres per minute,
b) all internal cold water taps and single mixer taps for kitchen sinks or bathroom hand basins on the premises must have a maximum flow rate of 9 litres per minute,
c) there must be no leaking taps on the premises at the commencement of the residential tenancy agreement or when the water efficiency measures are installed, whichever is the later
Note: Taps and showerheads having a maximum flow rate of 9 litres per minute have a 3 star water efficiency rating.Thanks Belinda
I first posted this query back in 2009 but the issue is really starting to bight now. The costs on water usage are rising quickly.
The legislation in NSW is pretty strict on this issue – almost forcing landlords to take on the cost. This is hardly condusive to reducing water usage.
Cheers
The BishA rent increase demand for the stated reason of offsetting water costs would very likely be overturned by a Tribunal even if morally reasonable because the legislation states that you can only charge for water as per the individual meter for that tenant.
No meter : no charge.
A rent increase demand for "market" reasons will stick if the increase is legal under the lease conditions and reasonable for the premises in the current market.
Mention water without a meter and you're sunk ( oops that's a groaner, sorry)
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I began stating as a Condition on my Property Manager's Lease Agreements 13 years ago, that I'd pay 90% of the tenant's excess water useage (to encourage them to maintain the lawns & gardens to my standard that I'd provided for them).
Regardless of what I thought was my extreme generosity, my lawns & gardens were allowed to die (& the P/Mgrs didn't give a damn), so I reduced the 90% to 80%, then it became 70% & so forth til I eventually decided enough was enough.
For the last coupla years the Condition states that "if the lawns & gardens are maintained to the same standard FOR THE DURATION OF THIS LEASE PERIOD, as shown in the photographs taken at the beginning of this lease, the landlord will refund an amount equal to 30% of the excess water charge AT THE END OF THIS LEASE PERIOD, to a maximum amount of $100.00."
Now all tenants keep my lawns & gardens half watered, which means my effort to green everything up between tenants is lessened.
One of my business books states that we can't tell our staff or tenants or kids how their behaviour affects US. They'll only take notice and act if you tell them what affects THEM.
In effect, my tenants now EARN their 30%. The onus is totally on them to earn my 30% "bonus."
As a consequence by the way, they also report any leaks or split hoses etc far more quickly now.……sorry, forgot to state that I'm in W.A. – if that matters?
Cheers,
LizHi there,
I have a granny flat on my IP in NSW and I find myself having to pay for the tenants water bill.
My agent have given all reasons why I should be paying. I am not happy with their response.
Which active agent do you currently use?
Thanks
Jac
If the granny flat has a separate water meter and you have water efficient taps etc you can charge the water usage portion of the bill.
If your agent is not sending the tenant the bill show them the legislation and/or change agents.
Some agents don't like charging it. I had one say it discourages the tenants from looking after the garden. (shaking head).
Jacpru, as Catalyst said – the premises needs to be separately metered & have water efficient measures installed. If not, you have to wear the cost.
From one of the leases that I use:
10. The tenant agrees to pay:
10.1 all charges for the supply of electricity, gas (except bottled gas) or oil to the tenant at the residential premises if the
premises are separately metered, and
10.2 all charges for the supply of bottled gas to the tenant at the residential premises, and
10.3 all charges for pumping out a septic system used for the residential premises, and
10.4 any excess garbage charges relating to the tenant’s use of the residential premises, and
10.5 water usage charges, if the landlord has installed water efficiency measures referred to in clause 11 and the
residential premises:
10.5.1 are separately metered, or
10.5.2 are not connected to a water supply service and water is delivered by vehicle.
11. The landlord agrees that the tenant is not required to pay water usage charges unless:
11.1 the landlord gives the tenant a copy of the part of the water supply authority’s bill setting out the charges, or other
evidence of the cost of water used by the tenant, and
11.2 the landlord gives the tenant at least 21 days to pay the charges, and
11.3 the landlord requests payment of the charges by the tenant not later than 3 months after the issue of the bill for the
charges by the water supply authority, and
11.4 the residential premises have the following water efficiency measures:
11.4.1 all internal cold water taps and single mixer taps for kitchen sinks or bathroom hand basins on the
premises have a maximum flow rate of 9 litres per minute,
11.4.2 all showerheads have a maximum flow rate of 9 litres per minute,
11.4.3 there are no leaking taps at the commencement of this agreement or when the water efficiency measures are installed, whichever is the later.
12. The landlord agrees to give the tenant the benefit of, or an amount equivalent to, any rebate received by the landlord for water usage charges payable or paid by the tenant.
Points 10.5 & 10.5.1 are the ones you need to review (this is not the lease from the Office of Fair Trading NSW). You will need to check what your lease says but the cost recovery may have been crossed out
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