Water Usage & Utility Charging

Modified on Wed, 8 Apr at 4:38 PM

TABLE OF CONTENTS

Utility Charging
Water Usage Charging

Utility Charging

A tenant is generally responsible for all services supplied to the premises - this includes electricity charges, phone charges & gas charges.

The tenancy agreement must state that the tenant must pay for those services & that the tenant pays 100% of the total charge for those services.

In most circumstances, the tenant will organise their own utilities through service providers. Their may be some situations where the owner is the utility account holder. If this is the case, the invoice must be provided from the owner so the tenant can reimburse the cost to the owner. This arrangement should be noted in the tenancy agreement.

The agreement should also specify how the services must be paid. Typically this section would state 'DIRECT TO SUPPLIER' or something similar.

Water Usage Charging

A tenant is responsible for the cost of water usage during the tenancy, if requirements for charging water usage are met. Water usage charges include the full consumption charges (including bulk water charges)

Water Usage vs Service Charges

Please note, the tenant is responsible for the actual incurred cost of water usage only. The tenant is not responsible to reimburse the owner for access charges, service charges or sewerage charges.

Requirements for charging Water Usage

There are specified requirements that must be met in order for water usage to be charged to a tenancy.

1. The tenancy agreement must state that the tenant is to pay for water supplied to the premises

2. The property must have it's own individual water meter (other circumstance is water is delivered by vehicle)

3. The billing period must match the period the tenant is occupying the property. If the tenant only occupied the property for a portion of the billing period, their usage charges will be adjusted according to their water meter reading from when they took possession of the property.

4. The water bill from the water supplier must be provided. The bill must be issued with the tenant's invoice. The water usage charges must be invoiced to the tenant within a certain timeframe after receiving the water bill. Please check your specific State requirements, there are some examples below:

- In NSW, the water usage can only be charged to the tenant within 3 months of receiving the bill

- In QLD, the water usage can only be charged to the tenant within 4 weeks of receiving the bill

- In WA & SA, the water usage can only be charged to the tenant within 30 days of receiving the bill

5. In some states, a water efficiency certificate must be supplied for the premises or water efficiency must be adequately proven. Please check your specific state requirements.

Partial Billing Period

Partial billing refers to a billing period that includes only part of the time covered by the water bill.

For example, if a tenancy agreement starts on 1 February, but the water billing period is 1 January to 31 March, the partial billing period would be from 1 February to 31 March.

A tenant pays for water during a partial billing period if the requirements listed above are met. Additionally:

a meter reading must be recorded in either the entry or exit condition report
the partial billing period starts when the rental agreement begins
the amount owed is calculated based on a reasonable estimate of a tenant's water consumption using the meter reading from the entry or exit report
the rate used for calculation is the current rate stated in the water consumption charges document

Head Office Rentals will adjust the water usage charges to the tenant for a partial billing period based on the above requirements & the water meter reading you provide.

How long a tenant has to pay an invoice

The below information refers to invoices for utility charges. Invoices issued to the tenant for other reasons may have different timeframes as per the state legislation.

QLD: For general tenancies, a tenant has one month to pay an invoice once they have received it from the lessor or lessor's agent. The lessor can then breach the tenant using a Form 11 & provide them with 7 days minimum to remedy the breach.

NSW: For general tenancies, a tenant must be given not less than 21 days to pay an invoice once they have received it. The invoice must remain unpaid for at least 14 days before a non-payment termination notice can be issued.

VIC: For general tenancies, a tenant must reimburse the lessor within 28 days of receiving the invoice. If it's not paid, the residential rental provider can issue a Breach of Duty Notice. This notice specifies the breach, requires the renter to pay the amount (compensation) within a "required time" (generally 14 days for residential premises), and warns that further action may be taken.

WA: The act does not specify a specific period of time, however, it does note that the tenant must reimburse the lessor within a reasonable timeframe. This period is usually 14 days.

TAS: The Act does not set a universal payment deadline. The deadline is usually set by the terms of the lease or the due date on the specific invoice provided by the owner. If the payment is not made by the agreed deadline, it is considered a failure to comply with a provision of the residential tenancy agreement.

An owner can then issue a Notice to Vacate for this breach, which also requires 14 days' notice. Just like with rent, if the tenant pays the outstanding amount or otherwise "complies" with the agreement before the 14 days are up, the notice has no effect and the tenancy continues.

SA: Once a valid invoice is provided, the tenant is expected to pay by the date agreed upon in the tenancy agreement. If no specific date is listed in the agreement, it is generally considered due within a reasonable timeframe after the invoice is provided. A landlord can serve a Form 5 (Notice of breach to tenant - termination of agreement) immediately after the payment becomes overdue according to the lease terms.