KEY TAKE OUTS:
- Can a landlord require a tenant to pay for water usage in addition to rent
- What are the current water efficiency measures
- What new water efficiency measures will come into effect
In NSW, a landlord can require a tenant to pay water usage, in addition to the agreed rent, if:
- The property is separately metered; and
- The charges are not more than the actual amount that the landlord is billed for by the water authority; and
- The landlord has given the tenant a copy of the part of the water bill which sets out the charges or other evidence showing the cost of the water used by the tenant; and
- The property meets the ‘water efficiency’ measures.
This is usually provided for in the tenancy agreement between the parties. The tenant has an opportunity to view this before signing.
It is the last dot point that is worth discussing in more detail, in anticipation of changes that are coming on 23 March 2025.
Water efficiency measures
What are the current water efficiency measures? In order for a rental property to meet water efficiency measures, it must have:
- For cold water and single mixer taps – a maximum flow rate of 9 litres per minute for internal kitchen sinks and bathroom hand basins. Taps for the bathtub, laundry sink, washing machines, dishwasher and outdoor taps are exempt from the 9 litre per minute flow rate requirement
- For shower heads – a maximum flow rate of 9 litres per minute
- No leaking taps or toilets
What is changing?
From 23 March 2025, in order for a rental property to meet water efficiency measures, all toilets on the property must have dual flush functionality with a minimum 3-star Water Efficiency Labelling and Standards (WELD) rating.
Let’s explore this a little further with a ‘did you know’. Did you know …
- If a landlord is charging a tenant for water, the usage charges should be paid separately to rent
- A landlord must request payment for water usage within 3 months of the bill being issued and give the tenant at least 21 days to pay
- If a landlord is passing on water usage charges to the tenant but then replaces any shower head, tap or toilet, the new items must meet water efficiency measures in order for them to continue to pass on water usage charges
- If a tenant tampers with water efficiency measure, they may have to pay to replace them
- Water efficiency measures should appear on the condition report for the rental property
- A landlord must be able to demonstrate that the taps, shower heads and toilets in the property meet the water efficiency measures
- Tenants can ask the landlord or agent to provide evidence demonstrating water efficiency. This could include receipts, packaging, warranties, instructions manuals or a report from a licensed plumber
- You can test for water efficiency i.e. checked if the tap, shower head and/or toilet meet the water efficiency measures
- If a tenant believes they are being incorrectly charges for water usage, they should first raise the matter with the landlord or agent. They can also contact NSW Fair Trading and/or apply to the NSW Civil and Administrative Tribunal. Until the matter is resolved, the tenant should continue to pay the water usage charges to avoid being issued a termination notice for non-payment
- The account for water supply incorporating both service charges and usage will be issued in the landlord’s name not the tenants
ABOUT MELINA MAIOLO
Melina joined the Coutts team in 2010 working as a Licensed Conveyancer within our Property & Conveyancing team, based out of our Campbelltown office. Her commitment to client services saw her progress further and into the role of a Senior Licensed Conveyancer in July 2022.
She graduated with a distinction in the Advanced Diploma of Conveyancing and is accredited with the Australian Institute of Conveyancers NSW.
For further information please don’t hesitate to contact:
Melina Maiolo
Senior Licensed Conveyancer & JP
info@couttslegal.com.au
1300 268 887
This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.
