Water usage in Queensland
June 24, 2021
Water usage in Queensland rental properties is the most contentious and misunderstood issue in the industry today. Property Owners have been given the authority to charge tenants for water usage (under strict guidelines), but the Legislation makes it very hard for them to enforce this right. The issue is further complicated for interstate owners because water billing policy varies greatly between states. To try to clarify some of the challenges, here are a few facts that you as a property Owner needs to be aware of:
Fact 1: Water Billing Policy in QLD
In Queensland, all water bills are sent to the property owner and not the resident. This is because all the bills are in your name and it is a legislative requirement that you as the owner must pay the bill in full irrespective of whether you will be on charging the tenant.
Fact 2: Which part of the bill is chargeable to the tenant?
The owner must pay the full water bill before on charging the water usage part to the tenants. In the scenario below, the property is water compliant. Therefore, the tenant is charged the water usage section of the bill. The owner must pay for the full bill before on charging the tenants their portion of the bill.
The scenario below suggests the owner must pay $353.09 and on charge the tenants the water usage part of the bill = $160.01. Moreover, the tenant has 30 days from the day that they receive the invoice to reimburse the owner of the water usage part of the bill.
Fact 3: Can I charge the tenant the full water usage?
The tenant can be charged the full water usage if the property is ‘water compliant’ according to the Water Efficiency Labelling and Standards (‘WELS’) Scheme. You will need to contact a certified plumber to conduct an inspection on the property and provide the water compliance certificate. Should the property not be made water compliant, we can ask the tenant to pay anything above 35KL? If the property is water compliant, this will reflect Scenario 1. However, if the property is NOT water compliant, this will reflect Scenario 2.
Scenario 1:
The Property is water compliant the tenants are charged the full water usage = $160.01.
SCENARIO 2:
Here, the property is not water compliant, the tenants may be charged anything above 35KL. This bill is charged as below: 126KL-35KL = 91 KL. 126/517.08 = $4.10 * 91KL = $373.44. Hence, the tenants will be charged $373.44.
Fact 5: How long do the tenants have to pay for the water bill?
As per legislation the tenants have 30 days within receiving the bill to pay for their portion of the water usage. If the invoice is not paid for, they are in breach of their agreement and a Notice to Remedy Breach (RTA Form 11) will be issued.
Fact 6: How do you charge the tenants a water bill if they move or vacate the premises in between the water billing period?
When the entry condition report/exit report is conducted a water meter reading will be taken. This is calculated as per below.
Fact 7: What happens if there is faulty plumbing?
In the event of a water leak, the tenant can put forward an argument to avoid paying the water usage bill. Should they take matters further and progress to QCAT, studies have shown that adjudicators do favour the tenants in regard to this situation. Thus, ensuring your property is well maintained will prevent tenants from seeking compensation.
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