Water Usage Standards
Property Management Basics - Water Usage Standards Mean?
Water is the one utility account which always remains connected in the Landlord’s name. There are two parts to a water bill;
the fixed service charge (for having water and sewerage services to the property), and
the water usage component (for eligible properties)
Some properties do not have a water usage component — for example, some strata properties are not separately metered within the complex and, as a result, water usage for each individual unit is not calculated. For most new developments they are now introducing separately metered water usage for each individual property at the construction phase.
If a Landlord is charged for water usage on their water bill, they can collect water usage from the Tenant as reimbursement of this expense. However, in order for a Landlord to charge a Tenant for water usage, three conditions must be met;
✔️ The property is separately metered
💵 The usage charges are not more than the amount the Landlord is billed by Sydney Water
📝 The property meets water efficiency standards
So, what does this mean? As mentioned above, if a property is separately metered it will be charged water usage for the billing period. Located on the property will be a water meter and as water is consumed on the dwelling the number will tick over for each kilolitre used. At the end of a billing period the water company will read the meter. Based on the previous reading and the new reading they will calculate how much water was used in that period and it will be charged at a certain rate per kilolitre.
If a property is not separately metered there is no usage charge calculated. In some cases where an additional dwelling is added to a property, for example a granny flat, only one water meter exists to the main home — a plumber can install a water meter to the second dwelling so that usage can be manually calculated. This meter is not monitored by the water company but the Landlord or Agent can take a reading of the second meter and work out how much that dwelling consumed and then deduct this from the total water usage on the bill. If a separate meter is not installed to the second dwelling water usage can not be charged to the tenant in that dwelling.
Secondly, the usage charges must be equal to or less than what is charged on the water bill for that period. You can not charge the tenant a higher amount than the water usage component of the bill.
Lastly, the property must meet the water efficiency standards which in short means that certain taps and toilets on the property must meet maximum flow rates or have dual flush capabilities. You can read about the water efficiency standards in more detail here.
If the above conditions are not met you can not pass the water usage charges onto the Tenant for reimbursement to the Landlord.
It should also be noted that the water usage charges issued to the Tenant are time sensitive as per the below timeframes;
the Landlord or Agent can request payment of the water usage from the Tenant within 3 months of the date the water rates were issued. If the water usage is issued to the Tenant for a period more than 3 months ago the Tenant is not liable to reimburse the Landlord.
the Tenant must be given at least 21 days to pay the water usage charges to the Landlord or Agent from the date you invoice the tenant.
a copy of the water bill noting the usage amounts needs to be supplied to the Tenant with the water usage invoice.
Photo | R ARCHITECTURE on Unsplash
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