Charging Tenants for Water Usage - The Nitty Gritty?

We are about to start a new lease and for the first time since the law changed regarding water use, we will be charging the tenants for the water they use. Because we don't hold many properties, this will be easy for us to manage.

What about PMs with hundreds of houses under management. Does the PM read the water meter each quarter, or at the start of each lease and then at the end? I cannot imagine how much time that would add to their already busy days if they had to physically read every meter on a regular basis?

Can anyone shed any light on this for me?
 
Hi Wylie.

Wouldn't you just read the water usage on the rates notice to make things easier, then pass that amount on to tenants.

Regards
Marty
 
Hi Marty.

That would be the easiest, but the water usage on the rates notice is out of date. There is a lag of a couple of months (from memory). I do know there is a place to record the meter reading when tenants go into the place. I think from memory it is on the entry condition report, but I have not looked into it as yet. I will be doing that over the next week or so.

The other problem with taking it from the rates notice is that unless they move in coinciding with the exact date, they could well be paying for the previous tenant's usage and when they leave, the next tenant would be paying for their usage.
 
Yep, I should have known it wouldn't be that easy. For long term tenants, the rate notice 'method' would be fine but as you say, it's the beginning and end of lease periods which raise the problem.

Regards
Marty
 
We have just had an IP water rated so will be charging tenant for water. Tenant has been there 6 months and just re-signed, so still to find out how it works at the end of a lease etc.
Marg
 
What about PMs with hundreds of houses under management. Does the PM read the water meter each quarter, or at the start of each lease and then at the end? I cannot imagine how much time that would add to their already busy days if they had to physically read every meter on a regular basis?

wylie,

In NSW where tenants do pay for water usage, the PM reads the water meter at the start of the new tenancy / end of the old one (they are there doing a move out inspection anyway) and then at the end of the tenancy (they are there again doing a move out inspection anyway). During the tenancy, the tenant pays water as per the 6 monthly rates notice and adjustments are made on a pro-rata basis for the start and end of the tenancy. All pretty easy. :)
 
In Victoria, the tenant has their own account (for usage only) with the water company. The landlord has an account for service charges.
 
Property manager will read the meter at the start/end of the tenancy and calculate the amount of water from the last reading (as noted on the rates notice) and work out the cost Then just go off the rates notice throughout the tenancy.
 
Here are the rules for QLD, this was from my PM sorry couldn't find a link.

Residential Tenancies Act 1994
Know your rights and responsibilities when renting in Queensland
Water Charging
New laws allow lessors (landlords) to pass on the full water consumption costs to tenants provided ALL the minimum criteria have been met.
What is a water efficient rental premises?
Water efficient rental premises are where required internal cold water taps, showerheads and toilets meet the performance standards for a *3 star WELS rating or higher. These water efficiency levels may be achieved through installing 3 star WELS rated products or through the use of ‘add on’ devices, such as aerators or flow restrictors.
Water efficient devices *Minimum water efficient standard required
• Internal cold water taps and single mixer taps (excluding bathtub taps and taps for appliances) Must have a maximum flow rate of 9 litres per minute.
• Showerheads Must have a maximum flow rate of 9 litres per minute.
• Toilets Must have a dual flush function that does not exceed 6.5 litres on full flush
and 3.5 litres on half flush and has a maximum average flush volume of
4 litres (based on the average of 1 full flush and 4 half flushes).
*For more information about the WELS scheme visit www.waterrating.gov.au
When can a lessor start charging tenants once these criteria are met?
From 1 April 2008 • if tenants are currently on a periodic agreement.
• if tenants sign a new agreement (fixed or periodic) on or after 1 April 2008.
Note:
If the periodic agreement doesn’t say the tenants are to pay for the water
consumption, the lessor/agent cannot require the tenant to pay unless
both parties sign any changes to the existing agreement or enter into a
new agreement.
From 1 April 2009 OR the expiry of the agreement, whichever occurs first
• if tenants are currently on a fixed term agreement signed before 1 April 2008.
Note:
If the fixed term tenancy starts before 1 April 2008 lessors/agents cannot
include a ‘special term’ to allow tenants to be charged for water from 1 April
2008. A new agreement will need to be made on or after 1 April 2008.
What are the minimum criteria for water charging?
Lessors will be able to pass on the full water consumption costs to tenants if:
• 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.
33 Herschel St Brisbane GPO Box 390 Brisbane Q 4001
Telephone: 1300 366 311 (for the cost of a local call) Facsimile: (07) 3361 3666
www.rta.qld.gov.au
* ‘Reasonable’ amount of water:
The lessor and the tenant should agree upon what is a
‘reasonable’ amount at the start of the tenancy and include
the amount as a ‘special term’ in the tenancy agreement. The
tenant is liable for any consumption above that agreed amount.
Who pays for water in a rental premises?
LESSOR must pay for all water charges.
1. Are the premises individually metered for water, or is water delivered by vehicle?
2. Does the agreement state the LESSOR must pay for all water charges.
tenant must pay for water?
LESSOR must pay for a ‘reasonable’* amount of water for the period premises is not water
efficient, and any costs if water efficient devices are to be installed.
3.
Are all water efficient devices in place for the entire period full water consumption is to be charged?
TENANT may be asked to pay for all water consumption charges for the period. LESSOR must pay all fixed charges for water supply.
If YES
If NO
Lessors can access the Home Water Wise Service (SEQ only) www.homewaterwise.com, or Home and Garden Water Wise Rebates Scheme www.nrw.qld.gov.au. Water saving tips can be found on the Queensland Water Commission website www.qwc.qld.gov.au.
The Residential Tenancies Act 1994 is the primary source material on the law and takes precedence over this Fact Sheet should there be any inconsistency between the Act and this Fact Sheet.
If you need interpreting assistance to help you understand the information on this Fact Sheet, please contact the Translating and Interpreting Service on 13 14 50 (for the cost of a local call) and ask to speak to the Residential Tenancies Authority (RTA).
March 2008
Version 212.02
Important points to note:
• Tenants and lessors/agents should negotiate obligations at the start of the tenancy and put these in the tenancy agreement (for example, if the lessor is to contribute to water costs).
• It may be helpful to contact the local government (council) about average water consumption in the local area.
• Water billing periods are unlikely to align with tenancy agreements. It’s important that both the tenant and the lessor/agent make a note of the water meter readings at the start and end of the tenancy (on the Entry and Exit Condition Reports) to help calculate water consumption.
• Tenants will not be billed directly by water supply authorities for water.
• Lessors will receive the water bill, pay for the full amount and should provide their tenants with a copy of any water bills or evidence of water consumption figures to verify the amount the tenant is to be charged.
• Tenants have one month in which to pay the agreed amount for water consumption after the lessor provides evidence of the costs to the tenant. The lessor/agent cannot require the tenant to pay more than the billable amount, or charge tenants late fees.
• If the tenant and lessor/agent cannot agree about water charges, the RTA’s Dispute
Resolution Service may be able to assist.
 
Hey, In Vic, an account is set up for the tenant purely for usage and the LL is sent separate rates for water. The PM sends it through to the water board prior to occupation and the water board does the readings.
 
Hey, In Vic, an account is set up for the tenant purely for usage and the LL is sent separate rates for water. The PM sends it through to the water board prior to occupation and the water board does the readings.

Yes, in Victoria it is so much simpler than in QLD. We have an IP in Victoria and do not have to worry about water usage by tenants, the water authority does that automatically. We get the bill for water charges and pay it accordingly.

Our IP in Qld we have to pay for tenants' water consumption unless we do what the government dictates - see the fact sheet.
 
Does anyone know the rules for ACT?

I am being hit with quaterly $400+ charges for water usage. Plus the supply charges.

I have brought this to the attention of my PM. Who advised me that she will have a chat with the tenants and also send a plumber to see if there is any leakages. Tenants have reported occasional leakages in toilets and showers. Which I was not made aware of until know.

PM said if the water usage bill stays high in the future then she will get the tenants to pay for it.

Cheers,
Oracle.
 
Hmmm I might start charging for water - I think I meet the criteria.

We just paid $104 for a plumber to go around & make sure IP was 'water compliant' & make whatever changes if needed. From the lease that starts next month my tenant will be paying for their water which I think is only fair.

Just got our PPOR rates today with a $523 water bill so I dont really want to be paying for my tenants water too!

Cheers
Stella
 
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