A Guide to Water Usage and Billing for Tenants and Landlords in NSW
Water management in rental properties differs from other utilities like electricity and gas. Water is always connected, and the account for the water supply is in the landlord’s name. Understanding the responsibilities and rights of both tenants and landlords is essential for a smooth tenancy experience.
Who Pays for What?
Landlords are responsible for covering all water supply service charges (excluding water usage) and sewerage service charges (excluding pump-out septic service costs).
Tenants may be asked to pay for water usage if specific conditions are met:
- The property is separately metered (or water is delivered by vehicle).
- The charges match the landlord’s bill from the water supplier—no extra fees can be added.
- The property meets water efficiency standards.
- The tenant receives evidence of usage—a copy of the relevant part of the water supplier’s bill or equivalent proof.
Billing and Payment Process
Landlords or agents can request water usage payments within three months of the bill being issued. Tenants must receive a copy of the bill and have at least 21 days to make the payment. Importantly, water usage payments should be made separately from rent.
If tenants face difficulties paying, they are encouraged to arrange a repayment plan.
Tips for Accurate Water Billing
- Record water meter readings: Log the reading at the start and end of a tenancy to avoid disputes over water usage.
- Check the bill: If tenants think a water bill is too high, they can contact their water provider for clarification.
- Keep water efficiency intact: If tenants remove or tamper with water efficiency measures, they may have to pay for replacements and usage costs.
Water Efficiency Standards
For landlords to pass on water usage charges, rental properties must meet specific water efficiency measures:
- No leaking taps or toilets throughout the property.
- Showerheads must have a maximum flow rate of 9 litres per minute.
- Internal cold water taps and single mixer taps for kitchen sinks or bathroom basins must also have a maximum flow rate of 9 litres per minute.
- Dual flush toilets (minimum 3-star WELS rating) will be mandatory by 23 March 2025.
Landlords should provide proof of water efficiency through the condition report or other evidence upon request.
Maintaining Water Efficiency
Landlords are responsible for ensuring that any replaced showerheads, taps, or toilets comply with water efficiency standards. Upgrading to dual flush toilets with a minimum 3-star WELS rating is a forward-looking choice that aligns with the 2025 requirements.
Special Cases: Water and Septic Tanks
- Water Tanks: If tank water is the primary supply, landlords must ensure the tank is full at the start of a tenancy. Tenants are then responsible for refilling it during their tenancy if water efficiency standards are met.
- Septic Tanks: Tenants are required to cover the cost of pumping out septic tanks when full.
Rebates and Fair Practices
If landlords receive rebates for water usage charges, these savings must be passed on to the tenant. Additionally, landlords or agents must not interfere with water or other utility supplies unless it’s necessary for repairs or safety reasons.
Getting Help
If there’s a dispute over water usage or billing, tenants can lodge a complaint through NSW Fair Trading’s online service. Assistance is also available for tenants being charged for water usage when the property isn’t separately metered.
Water management doesn’t have to be a hassle. With clear communication and adherence to responsibilities, both landlords and tenants can ensure a fair and stress-free rental experience.
Relevant Legislation: