Non-payment of water and utilities in a rental property

Landlord or agent's rights and responsibilities

If a tenant falls more than 14 days behind with water usage or utility charges, the landlord or agent can serve them with a non-payment termination notice, giving them 14 days to leave the property.

The notice must:

• be in writing
• be signed and dated by the landlord or agent
• state the address of the rented property
• give the day on which the tenant is requested to move out
• state that the reason for giving the notice is because the tenant is more than 14 days behind with the water usage charges or utility charges
• include a statement informing the tenant that they do not have to leave if they pay all the water usage or utility charges owing or enter into, and fully comply with, a repayment plan agreed with the landlord.

This applies unless the Tribunal makes a termination order on the basis that the tenant has frequently failed to pay rent, water usage charges or other utility charges on time. The notice must also include this information.

A landlord can write their own notice or use NSW Fair Trading's sample termination notice form.

Tenants who catch up with their utility bills

There is a ‘general guarantee’ that a tenancy will continue if:

• a tenant catches up with payment of the water usage or utility charges and any rent owing, or 
• there is a repayment plan agreed with the landlord that is being followed.

If this happens after:

• a landlord has applied to the NSW Civil and Administrative Tribunal (NCAT), then the Tribunal cannot make a termination order and the tenancy will continue
• the Tribunal has given a termination order and the tenant has not vacated the property, the tenancy will continue. This means a landlord will not be able to enforce the order even if they already obtained a warrant for possession.

The exception to this is where the tenant frequently pays rent and/or water usage charges late. In that case, the Tribunal can make an order that a tenancy will definitely end, even if the tenant pays the water usage charges they owe.

Help with utility bills

Tenants having difficulty paying utility bills can get help.