Introduce new law... tenants to pay council rates

[devank]

Rates consist of user type charges such as garbage, water, sewerage, with only water being able to be passed on to tenants.

In Sydney, council rates do not include water & sewerage charges. Sewerage is included in the water bill as part of service charge.

Water rates - I think these should be in the same category as gas and electricity. For gas and electricity tenants have to pay supply charge, special meter reading fees and then usage.

I can think of few issues with passing whole water bills to the tenants.
1. Water is essential. It should never be cut off. Even a vacant property should have water connection. Hence, bill goes to the owner.
2. Unlike power & gas, water companies can't simply turn off their service for a particular property alone.
3. Tenants aren't allowed to change the water fittings without owners permission.

 

[tang]

i dont mind paying council rates. community development/changes = council rates increase = property value increases = owners vested interest.

strata though...

 

[The Fence]

In Sydney, council rates do not include water & sewerage charges. Sewerage is included in the water bill as part of service charge.

They do in Gosford, Wyong and Liverpool Plains Shires.

It's ok to have the tenant pay for the water usage, why not the disposal of it too..? And their rubbish.

 

[geoffw]

They do in Gosford, Wyong and Liverpool Plains Shires.

It's ok to have the tenant pay for the water usage, why not the disposal of it too..? And their rubbish.

In order to enforce this, for consistency, tenants should be charged according to usage. So in multi unit properties we should measure the amount of garbage they throw out. And have poo meters in every unit.

 

[Ideo]

They do in Gosford, Wyong and Liverpool Plains Shires.

It's ok to have the tenant pay for the water usage, why not the disposal of it too..? And their rubbish.

Fine - would you be happy to install the meters and then reduce rent accordingly?

Per income, rents are generally higher in Australia than they are in the UK, because there are greater costs associated with being a tenant.

Would you be happy getting $75 a week less, for arguments sake, and your tenant paying rates, water etc?

 

[devank]

Per income, rents are generally higher in Australia than they are in the UK, because there are greater costs associated with being a tenant.

Do they consider what is included in the rent when they compare rents between countries?

 

[donkey]

Rates in NSW (at least) are pegged to inflation, if any council needs to raise rates above that, they need to make a strong case to IPART to get a special exemption. Usual exemptions tend to be for major infrastructure/capital works eg: purchase of site like Hornsby quarry which had ongoing remediation costs. When this work is complete, special levy component of the rates will cease and the rates will decrease.

If tenants were to pay the rates either directly or through reimbursement, then rents would drop by a corresponding amount as well - in many areas rents are higher than mortgage repayments (if it is an IP you get the tax benefit of the expense in any case).

If $200-300 per quarter is your biggest gripe in the world and going to sink you financially, get out of property and leave your money in the bank where you can sleep soundly on a measly 3-4% return (minus the taxes).

Slightly inaccurate comment to say ''If $200-300 per quarter is your biggest gripe in the world and going to sink you financially, get out of property and leave your money in the bank where you can sleep soundly on a measly 3-4% return (minus the taxes).''

I'm paying $420 per quarter rates and rising every yr above cpi. My money in the bank is earning 4.1% - it was 5.25% this time last yr.

I can't ever see rents going down as suggested by some of the above comments. At least not where my I.P is as there is chronic shortage of rental properties. Rents only go one way and that is UP.

 

[fisherman]

[snip]
Rents only go one way and that is UP.

That is not true. But even where rents do go up, it may be insufficient to cover extra costs to the owner. That is how the nett earnings of residential housing have dropped over the years.

Also, there is vacancy, which in any downturn can be long.

 

[The Fence]

In order to enforce this, for consistency, tenants should be charged according to usage. So in multi unit properties we should measure the amount of garbage they throw out. And have poo meters in every unit.

Why a meter when all the sewerage and rubbish is obviously the tenants?
Apportion the rates to the time they occupy.

 

[fisherman]

Councils say they are there to provide a range of services for all of the community. That is true. As well, all of voting age get to elect local government and therefore have a say in what services are needed and should be supplied.

A property owner, residential or rental, provide much-needed shelter that is regulated by government and s/he is obliged to pay for all local government services including management overheads and provisions for the future. S/he doesn't get to choose to pay only for those s/he consumes personally, except in narrow areas such as water consumption, where the availability of the service and provision for future continuance and expansion of the service MUST be paid for anyhow, irrespective of any consumption, which is also charged.

There is no reason outside of historical accident that tenants avoid paying their equitable share of council taxes.

It is not good enough that some bureaucrats argue 'difficulty' in providing better billing aimed at ensuring that all services by the council pay equally for their share of the services and benefits. But it isn't just a argument based on bureaucratic (in)convenience is it? It is in fact their political decision and political advice they are justifying.

It is easily done by electricity authorities and there is no practical reason why the same arrangements shouldn't apply to tenants for the full range of services council provides that are them for them too, not just someone who happens to have bought a house.

 

[geoffw]

Why a meter when all the sewerage and rubbish is obviously the tenants?
Apportion the rates to the time they occupy.

The issue is multiple dwellings. Like water, which cannot be charged to an imdividual premise unless it's separately metered.

 

[INVSTOR]

I'm having enough probs just getting tenants of PM managed properties to pay for their water usage. Only 1 out of 4 have paid on time without constant chasing up. I'm over the effort, will increase the rent and include water usage.

 

[TMNT]

wouldnt the rent over a period of time naturally adjust to incorporate rates anyway if the tenant pays rates?

 

[Ed Barton]

How do we get this legislation implemented? Who do I write to? Big tony A himself?

I would suggest you write to Santa.

It's that time of the year and you'll probably have more success.

 

[devank]

The issue is multiple dwellings. Like water, which cannot be charged to an imdividual premise unless it's separately metered.

I think, new buildings need to have provisions for future separate water meters (in Sydney). Eventually that will turn into compulsory.

 

[devank]

It is easily done by electricity authorities and there is no practical reason why the same arrangements shouldn't apply to tenants for the full range of services council provides that are them for them too, not just someone who happens to have bought a house.

How do you easily switch off council service or water service?

 

[The Fence]

Why the need for a meter? Seriously?

Owners in strata arent metered for sewer or garbage so just levy the tenant pro rata same as an owner.

Not hard at all.

Just got to be positive about it.

I've heard stories of tenants where water consumption is included in the rent and they brag about how long a shower they have etc.

They cant really abuse the sewer system or garbage can they? LOL !

 

[geoffw]

Why the need for a meter? Seriously?

Owners in strata arent metered for sewer or garbage so just levy the tenant pro rata same as an owner.

Not hard at all.

Just got to be positive about it.

I've heard stories of tenants where water consumption is included in the rent and they brag about how long a shower they have etc.

They cant really abuse the sewer system or garbage can they? LOL !

Regarding sewer and rubbish- I was being tongue in cheek.

Regarding water- you are not legally allowed to charge a tenant for water usage if it's not separately metered.

 

[handyandy]

How do you easily switch off council service or water service?

Remove the water meter. This is what they do in the US where tenants pay for water & sewage just like electricity or gas.

By the way the same thing happens here with gas where they disconnect the supply from the gas meter. They tend not to disconnect immediately in the hope that they don't have to exert the disconnect effort but after a while they come along and physically disconnect the gas.

Same with electricity. On termination they read the meter and may or may not pull the main fuses.

Just because they don't do it doesn't mean hey can't do it.

Cheers

 

[The Fence]

Regarding water- you are not legally allowed to charge a tenant for water usage if it's not separately metered.

Yes I think we all know this, but I'm saying that could and should be changed.

You know, going in with an open mind and all....just saying.