HELP!! Tenants used 250kL for a month - $500 for the water usage

[wonderland0515]

I am a new investment property owner. I bought a house on 28.1.2012 and got it rented on February 2012 for 6 months. I have followed the requirements required by the Fair Trading NSW by using the standard tenancy contract downloaded from the Fair Trading and by submitting the bond to the Fair Trading. My tenant is a real estate agent so I was quite believe in him when signing the contract. When it reached to the water usage part, as I have been living in unit and the water bills are paid by the landlord, so I assume I have to pay the water usage for the tenants, and my tenants agree that the landlord should pay for the bills.

However, recently I just received a bill from Sydney Water for the period of 30/11/2011 - 27/2/2012, it costs $600+.As the house settled on 28/1/2012, Sydney Water has requested to previous owner to pay up to 27/1/2012 so I have $150 credit for the settlement adjustment, so I ended up paying $480 for one month water bills (since the previous owner has paid up to 27/1/2012, the $480 is for the period of 28/1/2012 - 27/2/2012). I have checked the average water bills for this property with Sydney Water for past 2 years, the fixed charges and water usage was approximately $300 per quarter, in average $100 per month.

If the water bill for this tenant is around $300 per quarter, I am fine with it. However, as the bill hits to $1500 per quarter (based on the pro rata calculation, $500 per month X 3 months), it is extraordinary high water usage for this tenant.There are 4 ppl in the house, avr water usage for 4 ppl in one quarter is 85kL, but these 4 ppl use 600kL in one quarter.I know I can not do anything while the tenancy contract is not expired yet (The contract is going to be expired on end of July). But I really want to know, once the tenancy contract is expired, is it legal if I sign a month by month contract by passing on the water usage after the end of this 6-months as I want to observe whether the tenant still wasting the water so I do not want to stay in the long term contract. How can I prove about the water efficiency. I check the website states if the water flow is less than 9 L per minute than it is okay to pass on, do I need to find a plumber to check the water efficiency or just check tab by tab (i.e bathtub, laundry, kitchen etc)?

Thanks heaps for your reply

 

[Corey Batt]

Possibly might want to check to see if there is a ruptured pipe also. Have known two properties to have this issue before, ended up being the mains having a constant leak which blew the water usage sky high.

 

[The Fence]

My tenant is a real estate agent so I was quite believe in him when signing the contract.

Check for any leakage. If no leaks, then your realestate friend is using you.

Then get them to be paying for usage and remind them that it is up to them to notify of any possible leaks otherwise they will be up for all usage.

 

[The Y-man]

You did drive by to check if the new 6 vehicle carwash had been set up in the front yard?

We had a small leak - and usage shot through the roof!
Easy to tell when all hte taps are closed, but water meter keeps going.

We told the water company and they refunded part of our bill for "leakage allowance"

The Y-man

 

[matto_]

I dont think I have ever paid for tenants water usage (or had it paid where I am renting).

 

[macca446]

Hi,
As per nsw law if you upgrade to the current water efficiency laws such as taps and shower heads and get a certificate from the plumber you do not pay for water usage the Tenant does, you only pat for the service fee.

Regards,
Don

 

[macca446]

Hi,
If you are not sure get a plumber out there asap he can check the flow rates, charge you a small fee and give you a certificate, it will save you a fortune.

Cheers

 

[vaughan]

Hi,
As per nsw law if you upgrade to the current water efficiency laws such as taps and shower heads and get a certificate from the plumber you do not pay for water usage the Tenant does, you only pat for the service fee.

Regards,
Don

THERE IS NO PLUMBER CERTIFICATE.

Chapter and verse:
http://www.legislation.nsw.gov.au/maintop/view/inforce/act+42+2010+cd+0+N

39 Water usage charges payable by tenant

(1) A tenant must pay the water usage charges for the residential premises, but only if:
(a) the premises are separately metered or the premises are not connected to a water supply service and water is delivered to the premises by vehicle, and
(b) the premises contain water efficiency measures prescribed by the regulations for the purposes of this section, and
(c) the charges do not exceed the amount payable by the landlord for water used by the tenant.

(2) A tenant is not required to pay the water usage charges unless 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.

(3) A landlord must give the tenant not less than 21 days to pay the water usage charges.

(4) A tenant is not required to pay the water usage charges if the landlord fails to request payment from the tenant within 3 months of the issue of the bill for those charges by the water supply authority.

(5) Subsection (4) does not prevent a landlord from taking action to recover an amount of water usage charges later than 3 months after the issue of a bill for those charges, if the landlord first sought payment of the amount within 3 months after the issue of the bill.

(6) A landlord must ensure that the tenant receives the benefit of, or an amount equivalent to, any rebate received by the landlord in respect of any water usage charges payable or paid by the tenant.

Note. Tenants under social housing tenancy agreements may be subject to different provisions in relation to the payment of charges for water usage (see Division 3 of Part 7).

(7) This section is a term of every residential tenancy agreement.

 

[Jtkumnick]

check the bathroom, the tenant may be keeping seals for sea world......

 

[Scott No Mates]

Are you self-managing or using a pm? Did you cross out the recovery of water usage?
Have you installed water efficient taps & toots?

The usage seems on the high side.

Get your plumber to check or install the fittings, then start charging to mitigate your losses.

 

[wonderland0515]

Thank you so much for your replies. Much appreciated.

Unfortunately, I cross Yes to pay for the water usage while signing the contract as I thought I have to pay for it as a landlord (Was too stupid as I never lived in the house and I assume I have to pay for it, I was not aware of the difference between water rates and water usage........) The contract is valid until end of July. May I know whether I can sign a new month by month contract with the current tenants by passing on the water usage? I am not too sure about the step to ensure the water efficiency....How to prove to my tenants that the tabs are water efficient??? I am a bit lost in this part...

I manage investment property by myself. I did check the meter before renting out by closing all tabs in the house and check the meter after 3 hours, it remained the same, so I assume there was no leakage for this property. I have attached the statement for you to have a look. The reading before 2/27/2012 was normal, about 86kL per quarter in average, there was a quarter jumping from 61 to 116kL because of no access for previous quarter (61kL was recorded based on average and then 116kL was recorded to cover the estimation for previous quarter). It looked normal for the water usage across past 2 years....

And, I just got the recent reading on 5/6/2012, but it was recorded based on average water usage as there was no access to the property. The reading will be adjusted for the next quarter.... But the problem is still there....The way the tenants using the water is way too irresponsible...

 

[Spades]

The reading before 2/27/2012 was normal, about 86kL per quarter in average, there was a quarter jumping from 61 to 116kL because of no access for previous quarter (61kL was recorded based on average and then 116kL was recorded to cover the estimation for previous quarter). It looked normal for the water usage across past 2 years....

And, I just got the recent reading on 5/6/2012, but it was recorded based on average water usage as there was no access to the property. The reading will be adjusted for the next quarter....

Problem may lay with the estimate...Estimates aren't accurate...Also,no access,means another fee for you,for a field officer to try and gain access for a read(aka chronic access)...No access,no read=estimate + special read.Provide access for an actual reading(MUCH preferable)and or picture of meter reading for approx date of next reading(not all readers accept this).Then i will tell you if the water is being diverted to toranga zoo next door.
Cheers Spades.

 

[Spades]

My tenant is a real estate agent so I was quite believe in him when signing the contract

The contract is valid until end of July. May I know whether I can sign a new month by month contract with the current tenants by passing on the water usage?

Why month by month contract/lease?Amend contract/lease once expired,so tenant pays for water usage,which is the norm btw.

The way the tenants using the water is way too irresponsible...

Your tenants a real estate agent=irresponsible