charging QLD tenants for excess water usage

Hello, the law in QLD now allows landlords to charge tenants for excess water usage if the property is metered. I am currently filling in a 20a (property management agreement) and came across this clause which allows me to charge for excess water usage.



There are 3 options and i want to tick either option 1 or 2 but i think option 2 is the fairest.

I don't have my rates notice handy so can anyone please advise what is considered a 'normal' amount of water to use for a 2BR unit with 2 occupants? I want to find out what is considered average and then charge them for any excess over this.

It looks like if i tick option 2, i have to insert an amount of litres... or would that be megalitres or something else?
Rates notices for this unit arrive every 6mths.

I have done a search on this topic and came up with 2 threads, one by wylie here:
http://www.somersoft.com/forums/showthread.php?t=48671

and another by belleren here:
http://www.somersoft.com/forums/showthread.php?t=46972

However neither of them answer my question so any feedback would be appreciated thanks

I will call my property manager tomorrow and find out what her other landlords are inserting here..... i just thought i'd see what people on here are doing.

hi shuggy

please wait for a few more replies from QLD, but as far as i'm aware, you would have had to have your IP fitted with water saving fittings in order to claim this.

as for the current usage (option 2), i would put it just above the current restriction and target of 200L per person per day.

personally, i have not bothered with either, as i'm only paying around $50 a quarter on water usage on top of the base charge, but it is an issue that PM's seem to worry about up here. i only have one IP btw.

cheers.

dan

Hi shuggy,

You'll probably need to get a plumber out to confirm your property conforms to the water saving requirements, but I'd tick option 1. The tenant uses water, the tenant pays for it. No different to electricity or gas.

I have to pay for all water used in the property I rent in NSW.

In Queensland you can ONLY charge your tenant for water usage if the property has been certified by a plumber as being water efficient. This includes dual flush toilets to the waterwise rating (some older dual flushes aren't compliant), low-flow shower, efficient taps etc. This is a one-off expense. We paid $253 for our water efficient certificate as there were a few things to be done. Earlier this year we recouped $83, so expect to be in front in the next year or so.

You must also include the fact that water will be charged to the tenant in the lease.

But you cannot charge a tenant for water if the property does not have an individual meter. As you have a unit, check this out first.

If unsure, ring the RTA.
Marg

As others have said, you not only need to have individual metering, you also have to have water efficiency compliance. If you have these things, I agree with dan75 that just above the water saving targets is reasonable. Our household is well below - we're down to under 70L per person per day.

In Queensland, you can only pass on the charges for water if the property is individually. Most older style unit blocks only have 1 metre for the whole block. The easiest way to tell is from your Council Rates Notice. If it is not individually metered, then the rates notice will show a percentage of the total consumption ie if there are 10 units in the block you will be charged 10% of the total complex consumption.

Hope this helps.

Hi guys, thanks for the replies.
Yes the property is a unit and is individually metered (strata title).
FYI, I have chosen option #2.
This is what the agents reply was:

We can only pass on the water charges if the units are separately metered. However if agreed in the Tenancy Agreement we can charge the tenants for excess water.

We put in a clause that the tenants are allowed 290kl per annum, there after $1.45 per kilo litre. I can work this out from your rates notice.

That is what seems to be the standard rate with all agencies at the moment. So option 2 is good.

Click to expand...

According to the RTA you do not need a plumber to certify that the property is water efficient - you just need to have receipts to prove that you have installed the water saving devices. These include dual flush toilets, shower heads and restriction washers to bathroom, kitchen and laundry taps.

I have done two of our IP's now. $20 for a washer kit and $14 each for water efficient shower heads from Bunnings. Total cost per IP = $48 and half an hour to fit and we can charge the tenant approx $200 pa for the water they use.

I believe the user should pay. Just as the tenant has to pay for electricity, gas, phone, Foxtel etc. They use it so they should have to pay for it Unfortunately, in the case of water, we have to collect from the tenant.

Cheers,

Bazza

Thanks for the intel Bazza.
So it sounds like you chose option #1 and will be charging your tenants the full amount?

How do you collect the water charges? Do you send your PM a copy of your rates notice and then they work out how much to collect for the water component?

Bazza said:

Unfortunately, in the case of water, we have to collect from the tenant.

Click to expand...

shuggy said:

Thanks for the intel Bazza.
So it sounds like you chose option #1 and will be charging your tenants the full amount?

How do you collect the water charges? Do you send your PM a copy of your rates notice and then they work out how much to collect for the water component?

Click to expand...

Yes Shuggy, option one is the go - I'm not running a charity.

I self manage so I just send the tenants a copy of the rates bill with the calculation of their contribution ( no. of kl x $1.65) and allow them 30 days to pay. It is written into the tenancy agreement so they just pay up. I haven't had a problem yet.

Cheers,

Bazza

G'Day Bazza,

the only thing the government have not thought about with the ability to charge tenants water consumption is the consequences if the tenant does not pay the water account.

You have to pass onto the property manager your rates notice so that the water consumption can be apportioned.

There is nothing in legislation to force the tenant to pay the water ie you can not breach them for none payment of a water account, unlike non payment of rent.

Also the owner has to pay the rates notice in full and has to wait to get reimbursed by the tenant. The owner will get charged default interest if they do not pay their rates on time, but there is no penalty for the tenant.

If the tenant does not pay for water consumption, then the owner will have to wait until the tenant vacates the property at the next lease renewal and then claim the outstanding amount from the bond(which the tenant can dispute)

I think that it is a great idea that the government have introduced the ability to pass water consumption onto the tenant, but until the time that tenants have to get their own account (like electricity,gas,telephone etc) the landlord will be the one responsible.

Jason Rose said:

G'Day Bazza,
There is nothing in legislation to force the tenant to pay the water ie you can not breach them for none payment of a water account, unlike non payment of rent.

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Hi Jason,

The tenant agrees to pay for water when they sign the Tenancy Agreement. If they don't pay up then IMO they have breached the agreement and you could send them a notice to remedy breach.

Excerpt from the RTA web site:

Lessors will receive the water bill, pay for the full amount and should provide their tenants with a copy of any water bills or evidence of water consumption figures to verify the amount the tenant is to be charged. Tenants will not be billed directly by water supply authorities for water.

Tenants have 1 month in which to pay the agreed amount for water consumption after the lessor provides evidence of the costs to the tenant. The lessor/agent cannot require the tenant to pay more than the billable amount, or charge tenants late fees.

So, they have one month to pay....

Cheers,

Bazza

We pay our water charges, send a photocopy of the notice to the PM, the tenant is notified and the amount is debited to the tenant's account. It is all written into the lease. So far no problems.
Marg

marg4000 said:

In Queensland you can ONLY charge your tenant for water usage if the property has been certified by a plumber as being water efficient.

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Hi Marg,

Can you please let us know who told you this information?

I rang the RTA yesterday and they said certification is not required.

I wouldn't be surprised though if you get a different answer depending on who picks up the phone.

On the website it says you 'should' have 'evidence' to back up your claim the property is water efficient if it is ever unclear. Evidence can be as simple as the receipts or packaging of a water saving tap. The cert is obviously the best proof but I'd rather not pay it unless I had to.

My take on what is says on the net (http://www.rta.qld.gov.au/Renting/During-a-tenancy/Rent-and-other-payments/Water-charging.aspx) is that we must be prepared to show some form of proof if you have to (but the cert is not mandatory).


Regards,

David.