How to pass on water rates and increase rent legally upon the expiry of lease

Good Morning all!

I am a newbie of the investment property market (was just jump in January 2012) and my tenant is a real estate agent so I wanna make sure every single step I am going to take is legally complied ><

As I really can not afford to pay the water usage for my tenants (Past quarter payments for this property was $170 water charges & $150 water usage = $320 per quarter and now jump to $1450 solely for the water usage for one quarter.....I was nearly fainted when I look at the bills... Only 4 people in an 100 sqm house ....I check the meter by comparing the difference between midnight and early morning, no issues for the water leaking.... so it should be the problem of tenant's behavior of using water excessively), I really have to pass on the water usage upon the expiry of contract...

Option 1:
How to pass on the water usage legally to tenant upon the expiry of contract?
Can I pass on the water usage legally without signing a new contract? Can I use the old contract and amend the clause "The landlord agrees to pay for water usage?"
What if the tenant disagrees with that?

Option 2:
If the tenant disagree with the water usage's passing on....
The rent appraisal for this property was $800-850 and the tenant has negotiated the rent down to $750 + rent prepayment for 6 months equivalent to $30 for interest saving =$780....And, now I am thinking of increasing the rent to $820 and pay on fortnightly basis if I cant pass on the water rates....is it excessive rent increase? The market rent is $830?
The following is the notice of rent increase NSW download from fair trading... As I don't want to sign a new contract with this tenant, can I just give him this notice upon the expiry of contract(30/7/2012)? there are 60 days notice required for rent increase. Can I give him on 30/6/2012 (before the expiry of contract) to notify him the rent will be increased from 31/8/2012 (given there are 60 days notice in between)?

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NOTICE OF RENT REVIEW
Residential Tenancies Act 2010 - Section 41

Important: This notice must be served at least 60 days before the increased rent is payable.

Please complete this form using a black pen in BLOCK LETTERS
To:….…………………………………………………………………………………….……..............................
(name of tenant/s)

I give you notice of an increase in rent in relation to the premises at:

Address of premises ………...…………………………………………………………………………………..
…………………………………………………………..Postcode……………………..


Payable from: ___/___/___ Your new rent will be $.............week/fortnight
(insert date on which increase is to take effect) (insert amount)

SERVICE OF NOTICE (section 223)
Notice given by:  Delivering it to the tenant in person at the premises
 Mailing it to the tenant (allow 4 working days for service)
 Personally putting it in the tenant’s letterbox, in an envelope addressed to the tenant
 Delivering it to somebody in person over 16 at the premises
 Faxing it to the tenant




………………………………………………………….. ……../…..…/……..
(signature of landlord or agent) (date delivered/posted)

Name of landlord/agent………………………………………………………………………………….
Contact phone number of landlord/agent……………………………………………………………...

For information about your rights and obligations as a tenant, contact:
• NSW Fair Trading on 13 32 20 or www.fairtrading.nsw.gov.au
• Law Access NSW on 1300 888 529 or www.lawaccess.nsw.gov.au
• your local Tenants Advice and Advocacy Service at www.tenants.org.au

Notes:
1. The tenant can negotiate with the landlord or agent to have the increase reduced or withdrawn. If the increase is reduced it still takes effect on the same day and no new notice is required.
2. If the tenant believes the increase is excessive they may apply to the Consumer, Trader and Tenancy Tribunal for an order determining what the rent should be. The onus of proof is on the tenant. Such applications need to be made within 30 days of receiving this notice.
3. The date from which this increase is payable cannot be within the period of a fixed term agreement of less than 2 years, unless the agreement contains an additional term that sets out the amount of the rent increase or the method for calculation of the rent increase.
4. During a lease of 2 years or more the rent can be increased at any time, but no more than 1 increase each 12 months is permitted. The tenant has the option of terminating the lease early without penalty during the rent increase notice period (see section 99 for further details).
5. Notice of a rent increase must still be given even where the details of the increase are already set out in the agreement or where the same parties are renewing a lease.
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Thank you in advance for your inputs!! Much appreciated!!
 
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