Property Manager Trying to Charge for Water, Is This Legal?

Hello. I'm from New Zealand. About to sign a tenancy agreement and something has raised a red flag. I've been asked to pay for the water usage in my apartment as part of the tenancy agreement. From reading about tenant / landlord rights in Sydney this is relatively normal if you have a separate meter. The issue I have is the way in which the property manager bills tenants.

The property manager receives a single bill from Sydney Water, which covers both apartment blocks.
The property manager takes a reading of the individual apartment water meters, compares it to the single bill from Sydney Water, to then calculate what will be charged for in terms of water usage.
The property manager then sends me a bill with their branding etc on it.

After speaking with Sydney Water (supplier), I've confirmed they're not able to give an individual bill for an apartment without all of the body corp / strata agreeing to it. So I can't get a bill (or a copy of a bill) from Sydney Water, referring to my individual apartment I'm going to become a tenant of.

Is this legal?

Fair trading determines a separate meter as one that allows a separate bill to be issued by the supplier (which currently isn't possible).

https://www.fairtrading.nsw.gov.au/housing-and-property/rent….

Comments

  • +4

    The property manager takes a reading of the individual apartment water meters…

    Try and find out when this will occur and check the meter around the same time.
    Get a copy of the property manager's reading to verify.

    • +8

      Hello Joe Hockey

    • You mean if I give up the avo toast I can get a proper house?! Awesome!

  • +2

    https://www.fairtrading.nsw.gov.au/housing-and-property/rent…

    /endthread

    It's not illegal. You don't have to agree to it, but then they probably won't agree to rent the place to you.

    • +3

      Did you read your own link?

      "
      A rental property is separately metered if the meter:

      allows a separate bill to be issued by the supplier"

      • +1

        That's what I'm focused on — I can't receive a separate bill from the supplier as it stands.

      • -3

        @star-ggg Did you read the link?

        Water is different to other utilities as it is always connected, and the account for the water supply will be in the landlord’s name.

        Landlords must pay all water supply service charges and all sewerage supply service charges.

        In NSW, a landlord can only ask a tenant to pay water usage charges if:

        the property is separately metered (or water is delivered by vehicle ), and
        the charges are not more than the amount the landlord is billed for by the water supplier, and
        the property meets the ‘water efficiency’ standards.

        I've been asked to pay for the water usage in my apartment
        property manager takes a reading of the individual apartment water meters
        compares it to the single bill from Sydney Water, to then calculate what will be charged for in terms of water usage.
        it's an apartment building so 99.9% will

        • Zeggi you are wrong, read the definition of separately metered on that page.

          the property is separately metered

          https://www.fairtrading.nsw.gov.au/housing-and-property/rent…

          A rental property is separately metered if the meter:

          measures the amount of electricity, gas, oil or water supplied or used only at the property
          allows a separate bill to be issued by the supplier
          for an electricity meter - has a National Meter Identifier (NMI)
          for a gas meter - has a Meter Installation Reference Number (MIRN) or Delivery Point Identifier (DPI)

          • -3

            @deme: dem you are wrong. Read section 39 of the RTA.

            • @Typical16-bitEnjoyer: https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/00…

              11.6.1 are separately metered

              Note. Separately metered is defined in section 3 of the
              Residential Tenancies Act 2010.

              http://www5.austlii.edu.au/au/legis/nsw/consol_act/rta201020…

              "separately metered" means that there is, in respect of residential premises, a meter—

              (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises

            • @Typical16-bitEnjoyer: Sure Zeg:

              https://legislation.nsw.gov.au/view/whole/html/inforce/curre…

              separately metered means that there is, in respect of residential premises, a meter—
              (a) that satisfies an Australian Standard prescribed by the regulations (if any) dealing with electrical, gas, oil or water metering equipment, and
              (b) that has been installed in accordance with the manufacturer’s instructions for installation or industry practice, and
              (c) that measures the quantity of electricity, gas, oil or water that is supplied to, or used at, only those residential premises, and
              (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises, and
              (e) if the meter is to measure the supply of electricity—in respect of which an NMI, within the meaning of the National Energy Retail Law (NSW), has been assigned, and
              (f) if the meter is to measure the supply of gas—in respect of which an MIRN or a delivery point identifier, within the meaning of the National Energy Retail Law (NSW), has been assigned.

              Then your fav 39:

              39 Water usage charges payable by tenant
              (1) A tenant must pay the water usage charges for the residential premises, but only if—
              (a) the premises are separately metered or the premises are not connected to a water supply service and water is delivered to the premises by vehicle, and
              (b) the premises contain water efficiency measures prescribed by the regulations for the purposes of this section, and
              (c) the charges do not exceed the amount payable by the landlord for water used by the tenant.

              Thanks for proving me right.

              • -2

                @deme: This is why you shouldn't keyboard lawyer @dem.

                There is nothing mandating OP pay water usage.
                There is nothing mandating the Landlord pay water usage.

                It's an open area. s 39(2) which you conveniently avoided as it doesn't suit your narrative.

                Read my VERY FIRST POST answering OP's specific question (before you went off on a tangent). It's not illegal for the Landlord to ask. If OP says no then they likely won't lease to them.

                • +1

                  @Typical16-bitEnjoyer: s 39(2) :

                  (2) A tenant is not required to pay the water usage charges unless the landlord gives the tenant a copy of the part of the water supply authority’s bill setting out the charges, or other evidence of the cost of water used by the tenant.

                  Is this seriously what you are relying on?

                  Read more:

                  40 Payment of rates, taxes and certain utility charges by landlord
                  (1) A landlord must pay the following charges for the residential premises—
                  (a) rates, taxes or charges payable under any Act (other than charges payable by the tenant under this Division),
                  (b) the installation costs and charges for initial connection to the residential premises of an electricity, water, gas, bottled gas or oil supply service,
                  (c) all charges for the supply of electricity, gas (except bottled gas) or oil to the tenant at the residential premises that are not separately metered,
                  (d) the costs and charges for the supply or hire of gas bottles for the supply of bottled gas at the commencement of the tenancy,
                  (e) all charges (other than water usage charges) in connection with a water supply service to separately metered residential premises,
                  (f) all charges in connection with a water supply service to residential premises that are not separately metered,
                  (g) all charges for the supply of sewerage services (other than for pump out septic services) or the supply or use of drainage services to the residential premises,
                  (h) any other charges prescribed by the regulations.

                  • -1

                    @deme: You cannot, nor could anyone, make that determination without seeing why the "body corp / strata" won't "agree" to the request. You also can't make that determination without seeing the actual bill from the supplier yourself. Why do you think the conscious decision was made to specifically and separately define Premises and Residential Premises?

                    You're dealing with hypotheticals as absolutes incorrectly. Pretty common on these forums. What is absolute is the 2 specific statements from my very first post. Read it again.

                    • -1

                      @Typical16-bitEnjoyer:

                      You're dealing with hypotheticals as absolutes incorrectly.

                      What are you even talking about Zeg?

                      This isn't a hypothetical, OP has a well defined issue.

                      Why do you think the conscious decision was made to specifically and separately define Premises and Residential Premises?

                      What are you smoking? OP is talking about a residential premise.

                      A residential premise is a premise as defined in the Act. As stated here https://www.ozbargain.com.au/comment/14116158/redir

                      You cannot, nor could anyone, make that determination without seeing why the "body corp / strata" won't "agree" to the request. You also can't make that determination without seeing the actual bill from the supplier yourself.

                      I don't need to see shit, it's quite simple I'd think someone like you could even understand. In your world maybe you think Strata has more power than state law, but not in reality.
                      “`
                      Is the water separately metered?

                      Yes -> Tenant must pay usage
                      No ->
                      Is the water is delivered by vehicle?
                      Yes -> Tenant must pay usage
                      No -> Landlord must pay usage

                      For supply charges for water: landlord must pay.
                      “`

                      separately metered means that there is, in respect of residential premises, a meter—
                      (a) that satisfies an Australian Standard prescribed by the regulations (if any) dealing with electrical, gas, oil or water metering equipment, and
                      (b) that has been installed in accordance with the manufacturer’s instructions for installation or industry practice, and
                      (c) that measures the quantity of electricity, gas, oil or water that is supplied to, or used at, only those residential premises, and
                      (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises, and
                      (e) if the meter is to measure the supply of electricity—in respect of which an NMI, within the meaning of the National Energy Retail Law (NSW), has been assigned, and
                      (f) if the meter is to measure the supply of gas—in respect of which an MIRN or a delivery point identifier, within the meaning of the National Energy Retail Law (NSW), has been assigned.

                      Your first post is WRONG.

                      In NSW, a landlord can only ask a tenant to pay water usage charges if:

                      That's not what the Act says, it says the Tenant must pay if, or the landlord must pay. There is no asking.

                      • -1

                        @deme: So, again hypothetically, if OP was to obtain a copy of the Owner's Corporation Sydney water bill and it itemised every single water AMI meter in the building for usage, would your response change?

                        • -1

                          @Typical16-bitEnjoyer:

                          So, again hypothetically, if OP was to obtain a copy of the Owner's Corporation Sydney water bill and it itemised every single water AMI meter in the building for usage, would your response change?

                          No.

                          Let's run through this:

                          Owner's Corporation Sydney water bill
                          it itemised every single water AMI meter in the building for usage,

                          Supplier = Sydney Water

                          So if we engage our brain here:
                          (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises, and

                          Oh look, it does not enable Sydney Water to issue a separate bill does it?
                          If it did, then we wouldn't be having a discussion here as OP would have a bill from Sydney Water.

                          separately metered means that there is, in respect of residential premises, a meter—
                          (a) that satisfies an Australian Standard prescribed by the regulations (if any) dealing with electrical, gas, oil or water metering equipment, and
                          (b) that has been installed in accordance with the manufacturer’s instructions for installation or industry practice, and
                          (c) that measures the quantity of electricity, gas, oil or water that is supplied to, or used at, only those residential premises, and
                          (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises, and
                          (e) if the meter is to measure the supply of electricity—in respect of which an NMI, within the meaning of the National Energy Retail Law (NSW), has been assigned, and
                          (f) if the meter is to measure the supply of gas—in respect of which an MIRN or a delivery point identifier, within the meaning of the National Energy Retail Law (NSW), has been assigned.

                          • @deme: Engaging your brain is ignoring the question is it? Guess you're not familiar with Sydney Water or what multi AMI metering is. Won't waste my time with you lmfao.

                            By your argument next to zero apartment buildings in Sydney built pre 2014 can charge tenants for water usage since 2020. That's a lot of buildings doing "illegal" stuff champ.

                            • @Typical16-bitEnjoyer: Zegy the answer is still the same:

                              Sydney Water gives the bill: Tenant pays
                              Sydney Water doesn't give the bill: Tenant doesn't pay.

                              You started off arguing some nonsense about asking

                              https://www.ozbargain.com.au/comment/14117423/redir

                              Where Zegy said:

                              Read my VERY FIRST POST answering OP's specific question (before you went off on a tangent). It's not illegal for the Landlord to ask. If OP says no then they likely won't lease to them.

        • I’m in a subdivision and the water bills are generated separately to the same owner. Each water bill is attached to the RE invoice that is sent through for my reference.
          If the water bill doesn’t/can’t be invoiced to the one apartment/premise, they can’t charge for it.

  • I wonder why the landlord doesn't just gross it up into the rent?

    • +6

      Because the usage costs fluctuates.

    • +12

      Because people will use more if it doesn't cost them any more.

      • +2

        Does the same apply to "free" healthcare?

        • +1

          Guess so on Medicare bulk billing or once they hit the PBS Safety Net.

        • +3

          Yes.

          See NDIS rorting.

          • +2

            @mitt: NDIS is being rorted by the providers, not the customers.

            But yes, medicare, the PBS and free public hospitals do drive increased usage.

            Also, using extra water because you're not charged for it is very different to intentionally ripping off disabled people and their families.

        • but you don't have to wait 3 weeks for water to come out of the tap

      • Yes this is the exact reason why landlords should send the water usage bills onto the tenants.

        • True, but if you can't prove how much water they used, you can't bill them which IMO is fair.

          • @JimB: Yeah that does make it difficult. Even if they are charged less than their actual usage at least they might think twice before using excessive water.

      • Lol. When I was living in apartments I never used more just because I wasn’t invoiced for it.

        I just used what I needed.

    • +2

      Because not getting a water bill is a free pass to water wastage.

      • -1

        Free anything is an invitation for wastage; except maybe air. But some would say that for some people the air they breathe is a complete waste of oxygen.

  • You have an independent meter but was it installed internally by the apartment or by Sydney Water?

    • I'm not sure. From what I've been told, there's a meter under the kitchen sink. There's a remote meter reading unit. However as it stands Sydney Water is only able to bill the apartment blocks themselves, not individual apartments, because the strata / body corp would need to setup and organise that themselves.

      I don't know who exactly installed the meter.

      • +2

        OK sounds like it's not Sydney Water. If your tenancy agreement mentions that water is a separate charge, then you may not have a choice in how you're billed. However, since the meter is in your kitchen, you should read the counter regularly and challenge the agent if they overcharge. Take photos if possible, that's better evidence than writing numbers in a book.

        • https://www.fairtrading.nsw.gov.au/housing-and-property/rent…

          A rental property is separately metered if the meter:

          measures the amount of electricity, gas, oil or water supplied or used only at the property
          allows a separate bill to be issued by the supplier
          for an electricity meter - has a National Meter Identifier (NMI)
          for a gas meter - has a Meter Installation Reference Number (MIRN) or Delivery Point Identifier (DPI)

  • -5

    About to sign a tenancy agreement and something has raised a red flag

    You don't want to use water?

    Is this legal?

    Of course it is legal.
    It is their property, not yours.
    If you don't like the terms, then don't rent it.

    • Jv, I've put the definition from the Residential Tenancies Act which defines what is regarded as 'separately metered' below. I'm focused on the fact that I'm unable to receive a separate bill from the supplier — which is Sydney Water. I ultimately don't care if I have to pay water quarterly, it is what it is. However if the law is being skirted in order to push the costs on to the tenants of these apartment blocks, I want to raise it as an issue and get insight from others.

      separately metered means that there is, in respect of residential premises, a meter—
      (a) that satisfies an Australian Standard prescribed by the regulations (if any) dealing with electrical, gas, oil or water metering equipment, and
      (b) that has been installed in accordance with the manufacturer’s instructions for installation or industry practice, and
      (c) that measures the quantity of electricity, gas, oil or water that is supplied to, or used at, only those residential premises, and
      (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises, and
      (e) if the meter is to measure the supply of electricity—in respect of which an NMI, within the meaning of the National Energy Retail Law (NSW), has been assigned, and
      (f) if the meter is to measure the supply of gas—in respect of which an MIRN or a delivery point identifier, within the meaning of the National Energy Retail Law (NSW), has been assigned.

      • +1

        I'm focused on the fact that I'm unable to receive a separate bill from the supplier — which is Sydney Water.

        Then don't rent it…

      • Scroll down to Section 39.

        You're "focussed" on something that is completely irrelevant to your issue.

        • Can you explain further?
          I don't believe the premises meet the definition of what is 'separately metered'.
          The landlord cannot give me a copy of the part of the water supply authority's (Sydney Water) bill outlining the charges or any evidence of water used by the tenant.

          Section 39:
          (1) A tenant must pay the water usage charges for the residential premises, but only if—
          (a) the premises are separately metered or the premises are not connected to a water supply service and water is delivered to the premises by vehicle, and
          (b) the premises contain water efficiency measures prescribed by the regulations for the purposes of this section, and
          (c) the charges do not exceed the amount payable by the landlord for water used by the tenant.

          (2) A tenant is not required to pay the water usage charges unless the landlord gives the tenant a copy of the part of the water supply authority’s bill setting out the charges, or other evidence of the cost of water used by the tenant.

          • +2

            @MrHappy8D: "or other evidence of the cost of water used by the tenant."

            oh shit you could argue the property manager measuring the meter, and comparing it to the quarterly bill fits that requirement.

          • -2

            @MrHappy8D: 'Premises' and 'Residential Premises' have distinct and different definitions in the Act.

            • @Typical16-bitEnjoyer: Once again full of shit mate:

              'Premises' and 'Residential Premises' have distinct and different definitions in the Act.

              But don't take my word for it: https://legislation.nsw.gov.au/view/whole/html/inforce/curre…

              residential premises means any premises or part of premises (including any land occupied with the premises) used or intended to be used as a residence.

              premises includes a moveable dwelling within the meaning of the Local Government Act 1993.

              separately metered means that there is, in respect of residential premises, a meter—
              (a) that satisfies an Australian Standard prescribed by the regulations (if any) dealing with electrical, gas, oil or water metering equipment, and
              (b) that has been installed in accordance with the manufacturer’s instructions for installation or industry practice, and
              (c) that measures the quantity of electricity, gas, oil or water that is supplied to, or used at, only those residential premises, and
              (d) that enables a separate bill to be issued by the supplier for all charges for the supply and use of the electricity, gas, oil or water at those residential premises, and
              (e) if the meter is to measure the supply of electricity—in respect of which an NMI, within the meaning of the National Energy Retail Law (NSW), has been assigned, and
              (f) if the meter is to measure the supply of gas—in respect of which an MIRN or a delivery point identifier, within the meaning of the National Energy Retail Law (NSW), has been assigned.

              If it wasn't obvious to anyone with a small grasp of English, a Residential Premise is a Premise.
              Just like a Square is a Rectangle.

      • Even if you rent a house, you won't get a bill from the water supplier, you will get one from the landlord or agent. The landlord is paying the water supply charges, and just extracting the water usage to bill the tenant.

        I don't know of any scenario in Australia where a tenant gets a bill from a water supplier.

        You could ask for details of how the agent's bill was calculated if you want to be that guy.

        • In victoria, tenants set up an account with the water retailer and are billed directly for usaage. Landlords get a separate bill for supply charges

    • jv - the most unhelpful person on this page.

      • that's just your opinion, so irrelevant.

        I only deal with facts.

        • You crack me up at least.

          Your “facts” are ridiculous!!!

          • @bobwokeup:

            Your “facts” are ridiculous!!!

            Facts are facts, regardless of whether you think they are ridiculous or not…

            • @jv: Sorry, should’ve said they are pointless facts and no one ever listens to them!

              Yes like you love pointing out that’s my opinion but I’m not the only one that thinks that.

  • +1

    It’s not great if you’re a water miser and your neighbour lets the shower run all day, but it’s legal and normal.

    • +3

      The property manager takes a reading of the individual apartment water meters

      • -3

        Not for OP. Single bill for the complex then split by agent.

        • +5

          "The property manager takes a reading of the individual apartment water meters, compares it to the single bill from Sydney Water, to then calculate what will be charged for in terms of water usage."

          It's split based on usage.

          If it's split equally and not based on usage, then the landlord can't bill them for usage.

          • +2

            @JimB:

            It's split based on usage.

            Which is fair as long as it is transparent.

          • @JimB: Oops. Didn’t read that thoroughly.

            I’m aware of the same situation from a friend who’s complex didn’t have individual meters. It wasn’t fair on the water misers.

            As long as the agents are only charging the Sydney water usage rate and possibly a small service charge I guess it’s fair

            • @Euphemistic: I agree, if evenly divided it's not fair on people who use water normally (let alone water misers).

              Not good for the environment (nor landlords/property owners).

              Service charges must be paid by the landlord, no matter how small.

              • @JimB:

                I agree, if evenly divided it's not fair on people who use water normally (let alone water misers).

                That is effectively what happens when it is built into your rent too… You will end up paying more most of the time.

            • @Euphemistic: I don't think they can charge a service fee. The landlord is paying the agent for the service.
              And without separate meters, the tenants cannot be charged. It would have to be covered by the rent.

  • No, it's quite obvious from your link.

    "allows a separate bill to be issued by the supplier"

    Report this to https://www.fairtrading.nsw.gov.au/contact-us

    If you need more help: https://www.tenants.org.au/

  • If it's on the level, then you'd probably be better off as most of the bill is for things like parks.

    If they are just giving you a number and saying 'trust us bro' then that's a bit too shady. I would insist on a copy of the full bill along with my individual usage.

  • +1

    The landlord or real estate agent will send you the bill and your portion to pay.

    For example on a Sydney water bill you have
    1. Water service charge
    2. Waste water charge
    3. Storm water drainage charge

    Then separate on the bill is the "usage charges" which is your portion to pay.

    Example of my bill:
    https://ibb.co/zQK108L

    My bill is 37.50 payable.

  • Just adding here after reading more of the Residential Tenancy Act.

    I was required to pay the bond before signing the tenancy agreement, which is also against the act (Section 159.2)
    The condition report is going to be provided on the start date of the tenancy, the day I'm moving in. Which is also apparently against the act (Section 29.1)

    I haven't signed the tenancy agreement yet, and maybe this is just normal / casual for Sydney but its all pretty shit & shady to me.

    • You've given them the bond or did you lodge the bond online?

      • Shit I might need to stop skim-reading the act. They registered with Rental Bond Online and I paid it there. Which I think they might be able to do, before signing the tenancy agreement, my bad if so.

    • +1

      all pretty shit & shady to me.

      Welcome to the Australian housing market.

      • He’s In for a rude awakening.

    • +1

      Mate.
      It’s an absolute shit show here.
      Familiarise yourself with your rights as a tenant and make sure the real estate/landlord don’t take you for a ride.
      At the same time you don’t want to make too much noise otherwise they may try anything to evict you.

  • +3

    My parents have a block of units (yay boomers) that were built in a place and time when water was free and unmetered. These days we need to pay for it so in order to know who uses how much, we have private meters at each unit.

    Our agent takes a photo of each meter at the time we get our rates notice and bills each tenant their exact usage. I assume it's all above board if they do it. They charge us a nominal yearly fee for each unit for this service.

  • +1

    If it's any help, my apartment is billed separately.
    2 person household is around $200/qtr.
    Last Sydney Water bill (q2) was:
    Fixed costs:
    Water supply $18
    Sewage $156
    Stormwater $7
    Water usage $27
    There's no GST applicable on water bills so make sure the RE doesn't add a lazy 10% on top

  • kinda separate comment, I own a duplex in victoria with shared meter. I pay all the water usage and so far all the tenants haven't been wasteful, which is kinda cool.

  • Landlord should just put the rent up to cover it.

  • If it is only 1 meter at the entrance, DO NOT pay for it as this is illegal business practices.
    i pay my tenant's water usage which is about $165 per quarter. That's NOT Fair. Again just pay for your weekly rent as that's included water fee.

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