Charge tenants water rates?

Just talking to a friend of my wife and she rents a renovated queenslander.

She tells me that the landlord charges her water rates ? Each quarter.

Are many people doing this ?

I thinks it's 50% of the actual rates charged by council?

Any comments ?

Is this a new thing ?
 
Just talking to a friend of my wife and she rents a renovated queenslander.

She tells me that the landlord charges her water rates ? Each quarter.

Are many people doing this ?

I thinks it's 50% of the actual rates charged by council?

Any comments ?

Is this a new thing ?

I think properties that are individually metered (i.e. houses) you can charge water USE.

Properties that are not, such as units, the landlord pays.

At least thats how it is for my house in SA and units in NSW.
 
Far as I am aware the owner is responsible for paying the property rates and taxes for the premises in all states.
Utility connection fee's such as power are the tenants responsibility.

So I would be getting her to ring whatever the tenants association is in QLD and confirming as she can request that money back.

Even water usage fees have some requirements. Must have separate meter for example.
I think QLD has some requirements for water efficiency as well if what I have been told was correct. ie toilets must be dual flush and low flow shower heads.
 
I'd like to know this also and have been meaning to find out.

The RE have told me (on Qld and VIC properties) that we (the owners) need to pay for water, just as we do rates. I am also told it's not tax deductable, which doesn't make sense to me as rates are. However if it's excessive I have forwarded the bill to the RE and they have charged the tenants the excess amount.

Please someone enlighten me, if this is correct.
 
Doovalacky, again afaik, if you install water efficiency devices you can charge tenant. This is all info RE has given me and like I mentioned in last post, I really need to check up on all this.
 
She tells me that the landlord charges her water rates ? Each quarter.

Are many people doing this ?

Yes, residential tenants can be billed for their water consumption, landlords pay the quarterly fixed service fee.

On average our tenants use about $100 per quarter which is $400 per year per IP.


Example
Consumption $ 106.00 (tenants use)
Fixed fee $35.00 ( landlords bill )

Normally LL pays bill as in their name and then bills tenant for the amount they used each quarter.

Residential property needs to be separately metred and in NSW water efficent .


Regards
Sheryn
 
For Queensland:

Water charging

Fast facts

Lessor/agents and managers are allowed to pass on the full cost of water consumption provided:

the rental premises are individually metered (or water is delivered by vehicle), and
the rental premises are water efficient, and
the tenancy agreement states the tenant must pay for water consumption


Rental premises are considered water efficient if certain water fixtures meet the standards listed in the table below.

Water efficient devices Minimum water efficient standard required
Internal cold water taps and single mixer taps (excluding bathtub taps and taps for appliances A maximum flow rate of 9 litres per minute
Showerheads A maximum flow rate of 9 litres per minute
Toilets A dual flush function not exceeding 6.5 litres on full flush and 3.5 litres on half flush and a maximum average flush volume of 4 lites (based on the average of 1 full flush and 4 half flushes)
The requirement for taps applies only to internal cold water taps that are installed over a hand basin, kitchen sink or laundry trough (including single mixer taps). The requirement does not apply to other taps in the premises such as bath tub taps, outside taps for the garden, or taps which supply washing machines or dishwashers. These taps are not required to be water efficient.
At the start of the tenancy agreement, the lessor/agent and tenant should negotiate arrangements for water charging. The presence of water efficient fittings should be noted on the Entry condition report (Form 1a). Tenants must be given 1 month to pay any water bill after receiving the notice from the lessor/agent.

Lessor/agents should be able to demonstrate the presence of water efficient fittings where it may be unclear, such as by providing copies of:

plumbing reports
paperwork from Home WaterWise services
receipts
packaging
warranties or instruction manuals for taps and showerheads
For any water fixtures produced from 2005 onwards, the easiest way to check if they meet the required efficiency standard is to look for products with a WELS rating of three stars or higher. WELS is Australia's water efficiency labelling scheme which rates fixtures including taps, showerheads and toilets according to water efficiency - the more stars the better. To find out more about the scheme or search the registered product database, visit www.waterrating.gov.au.

If it ain't in the tenancy agreement, don't pay it!! If it is in agreement, pay it!!
 
.......we (the owners) need to pay for water..... I am also told it's not tax deductable, which doesn't make sense to me as rates are......Please someone enlighten me, if this is correct.

Incorrect. Water rates that you as a LL pay for, that a tenant does not pay for, is tax deductable.

Ian (WA)'s answer on water charging is correct.
 
As soon as new leases were drawn after the date that this change came in (1st April 2009???) we started charging our tenants for their usage.

We had waterwise checks and certificates for the houses.

The only thing I would say is that Sheryn's figures are only an example, but for a real life idea, the figures from a recent water bill for an IP in Brisbane are -

Tenants usage cost $ 92
Fixed cost (landlord) $160

It still costs us way more than the tenants pay just for the "water access" and "sewerage access" charges, but at least they are probably watching their water usage now more than they ever did, just like landlords have to in their own homes.
 
Delilah, in Vic the tenants pays ALL usage costs (it's in the RTA but can't remember the exact section right now but it's under reimbursements I beleive) and you ONLY pay rates.

Unless, you own a property which is not separately metered. Then you cannot charge the tenants at all because they may use less water than the property they share a meter with so you can't just split down the middle.

Most unit blocks I managed with this had the costs paid out of body corp fees.
 
Well Lil Skater I am very surprised then that my VIC RE has told me we must pay the whole bill. I'm going to be ringing in the morning to see what they say and if they tell me again I need to be paying for it, then I'll be looking up the correct info hopefully to prove them wrong. If they manage hundreds of properties how do they get this so wrong.
 
Yep.

FYI - it's Part 2, Division 4 Sec 52 (b) - A tenant is liable for the cost of all water supplied to the rented premises during the tenant's occupancy if the cost is based solely on the amount of water supplied and the premises are separately metered.
 
Well Lil Skater I am very surprised then that my VIC RE has told me we must pay the whole bill. I'm going to be ringing in the morning to see what they say and if they tell me again I need to be paying for it, then I'll be looking up the correct info hopefully to prove them wrong. If they manage hundreds of properties how do they get this so wrong.

Some agents are lazy. One told me they don't like to charge it as the tenants will then be less likely to look after the garden.:rolleyes:
 
My 2 cents:

The law does vary from state to state, so you will need to check the VCat or OFT website or your lease to see what it says about water consumption. The law in NSW changed last year and you can now only charge if water saving fittings have been installed. 12 months grace was given for people on old leases.

Some agents are lazy but if you have read your management agreement, the clause will state the agent charges their fee on all income collected, this includes water usage. They are getting their %, if only they claimed it.
 
Some agents are lazy but if you have read your management agreement, the clause will state the agent charges their fee on all income collected, this includes water usage. They are getting their %, if only they claimed it.

Depends on your contract all mine have been % on rent only or a fixed fee per month.
 
Most agents wont charge a fee on outgoings collected but some WILL so check your management fine print!

I have to be honest, to charge the tenant for the usage, is a little time consuming in the software program required to maintain the collection correctly. BUT You are entitled to receive reimbursement for water usage if the property meets water efficiency standards and has a water meter. If your agent wont do this for you then change agents :)

Another option is to negotiate with the tenant extra rent at the time of signing the agreement to cover water usage.
 
I'd like to know this also and have been meaning to find out.

The RE have told me (on Qld and VIC properties) that we (the owners) need to pay for water, just as we do rates. I am also told it's not tax deductable, which doesn't make sense to me as rates are. However if it's excessive I have forwarded the bill to the RE and they have charged the tenants the excess amount.

Please someone enlighten me, if this is correct.

Delilah,

I wouldn't take anything mentioned by PM's as being gospel. I have heard alot of heresay from PM's in which they are completely wrong. Remember, not all of them are investors, so wouldn't have a clue on what you can claim as a tax deduction.

A good accountant and this forum will set you on the correct course.

F
 
I'd like to know this also and have been meaning to find out.

The RE have told me (on Qld and VIC properties) that we (the owners) need to pay for water, just as we do rates. I am also told it's not tax deductable, which doesn't make sense to me as rates are. However if it's excessive I have forwarded the bill to the RE and they have charged the tenants the excess amount.

Please someone enlighten me, if this is correct.

I dont know about QLD, but in Vic usually the tennant pays for water usage, unless they dont have a meter. If they have a meter they should pay. Seems to me your agent is incompetent.
 
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