Water is different to other utilities, such as electricity and gas, as it is always connected, and the account for the water supply will be in the landlord’s name. Landlords must pay all water supply service charges (other than water usage charges) and all sewerage supply service charges (other than pump out septic service charges).
In NSW, a landlord can only ask a tenant to pay water usage charges if:
- the property is separately metered (or water is delivered by vehicle)
- the property meets ‘water efficiency’ measures
- the charges are not more than the amount the landlord is billed for by the water supplier, and
- the landlord has given the tenant a copy of the part of the water supplier’s bill setting out the charges, or other evidence of the cost of water used by the tenant.
The landlord or agent can request payment from the tenant for water usage charges within 3 months of a bill being issued.
The landlord or agent will need to provide the tenant with a copy of the bill. The tenant must be given at least 21 days to pay the water usage amount owing.
Water usage charges should be paid separately to rent.
Tenants must keep up with their utility payments or organise a repayment plan if they are having difficulties paying their utilities on time.
Important advice about water charges
- Water billing periods are unlikely to align with tenancy agreements. The water meter reading should be noted on the condition report at the start and end of each tenancy to ensure the tenant is not paying for another tenant’s water usage.
- Tenants can contact their local water provider if they think the water bill is too high.
- Tenants will have to pay for water usage if they remove or tamper with the water efficiency measures, and they may have to pay to replace them.
- Social housing tenants must pay water usage as determined by ministerial guidelines issued by the Department of Communities and Justice.
Water efficiency measures
A rental property is only considered water efficient if it meets the required water efficiency measures. A landlord must be able to demonstrate that the relevant taps, shower heads and toilets in the property meet the water efficiency measures.
Learn more about How to improve water efficiency in rental properties.
Resolving disagreements about water usage charges
If a tenant believes they are being incorrectly charged for water usage, the tenant should first raise the matter with the landlord or agent and try to come to a mutual agreement.
Tenants and landlords can also contact NSW Fair Trading to ask a question, get support or make a complaint.
Tenants may also apply to the NSW Civil and Administrative Tribunal to resolve a dispute about water charges if they think the landlord has not satisfied the water efficiency requirements.
Until the matter has been resolved, the tenant should continue to pay the water usage to avoid being issued a termination notice for non-payment of rent or charges. For more information, see Non-payment of water and utilities in a rental property.
Water tanks
If tank water is the only form of water supply to the property (where water is delivered by vehicle), then the landlord should ensure there is water in the tank at the start of the tenancy.
Tenants will be responsible for refilling the tank (if needed) during the tenancy if the property meets the water efficiency measures.
Septic tanks
If the property has a septic tank system, the tenant must pay for the cost of pumping it out when it becomes full.
Septic tanks are one of the most common types of onsite wastewater treatment systems used if there is no sewerage system in the area.
Rebates for water usage charges
If a landlord receives the benefit of a rebate for water usage charges (or an amount the same as a rebate), then this must be passed on to the tenant.
Interference with supply
A landlord or agent who interferes with the supply of electricity, gas, water, telecommunications services or other services to the rented property will be in breach of the tenancy agreement.
This does not include if the interference is necessary to avoid danger to any person or for maintenance or repairs.
Resolving issues as a tenant
If you are a tenant requiring assistance with water charges that are not separately metered or if your landlord or agent has interfered with supply, make a complaint.