Host – Belinda Heit – Communication and Education – RTA

Guest – Michaela Alletsee– Customer Experience – RTA

Host: Welcome to the Talking Tenancies Podcast, brought to you by the Residential Tenancies Authority. I'm your host Belinda Heit. Join me as we explore everything you need to know about renting in Queensland, with experts from the RTA and industry. We're here to help make renting work for everyone.

Lessors are allowed to pass on the full water consumption charges, including bulk water charges, to tenants provided they meet all the minimum criteria. At the start of the tenancy agreement, the managing party and tenant should negotiate agreements for water charging and frequency of charges. Today's expert from the RTA is Michaela Alletsee from Customer Experience. Welcome Michaela.

Guest: Hey Belinda. Thanks for having me.

Host: Thank you for joining us. Now can you tell us about your role at the RTA and what you're responsible for?

Guest: Absolutely so I am one of the team leaders in the Contact Centre here at the RTA. I look after our customer experience officers. This is who you would speak to when calling us for information about your tenancy.

Host: Yes, and they're a busy bunch. Now today we're going to talk about our water charges and also when there's leaks. It's something we get a lot of calls about, right?

Guest: We absolutely do. It's one of our, I guess, hot topics. Especially around the way water is charged.

Host: Alright. Let's get started then. When can a tenant be charged for water usage at a rental property?

Guest: Full water usage, including bulk water charges, can be passed on to the tenant if all of the following conditions are met. There are a few.

• The tenant is enjoying or sharing a benefit of the water service to the premises.
• The property is individually metered. Now this means that there is a meter for the premises that has been installed or approved by a supply authority and it measures the quantity of the water supplied to or used at the specific premises only under a service or facility made available by the authority.
• The property is water efficient, so there is say for example efficient shower heads. We'll go through that a little later in more detail.
• The tenancy agreement states that the amount for water consumption charges for the premises is payable by the tenant. It does need to be actually included in the special terms, and then the tenant is aware.
• The property manager or owner must pass on the full water bill to the tenant in a timely manner, providing proof of water usage, such as the utility bill itself and clear time frames for payment.

Host: We were talking about water efficiency there. I mean, how can we be sure that a property is water efficient?

Guest: There are minimum standards set that need to be met for a water efficient property, and property owners are encouraged to use the most water efficient devices throughout the premises.

Now this is where the list comes in. So for a property to be water efficient toilets, shower heads and internal cold water taps must be water efficient. Toilets need to be dual flush with a maximum full flush volume of 6.5 litres and maximum half flush volume of 3.5 litres and a maximum average flush volume of 4 litres based on the average of one full flush and 4 half flushes. Now that’s your toilets.

Host: Oh, my gosh, Michaela. That's just a drop in the ocean.

Guest: It is! So, [regarding] shower heads and cold internal water taps. They must have a maximum flow rate of 9 litres per minute as installed. A property can be made water efficient by installing fittings with a 3 star or higher water rating or through the use of add-on devices such as accelerators or flow restrictors.

Now it is the property owner who is responsible for paying for and installing water efficient devices if they intend to charge the tenant for the water consumption. If the tenant wants to install their own water efficient devices, but the property owner does not want to and does not intend to charge the tenant for water consumption, then the normal process for installing the fixtures applies. Internal cold water taps that are installed over a hand basin and sink, or laundry sink, including the single mixer taps, need to be water efficient. However, the other taps in the premises, such as bath taps, or taps which supply washing machines or dishwashers, do not need to be water efficient.

Now you may ask, how does this get demonstrated? A property manager or owner should be able to demonstrate the presence of water efficient fittings by providing copies of things such as any plumbing reports or certification receipts, packaging or warranties, or instruction manuals for those taps and shower heads.

Host: Yeah. So I guess the tip there really is, when we see any water carrying appliances or toilets or anything like that, you'll see the little sticker on there that has the stars for the Water Efficiency Labelling and Standards (WELS), water efficiency, or the drops rather. So just look out for those and obviously the less drops the better because we're going to use less water.

Guest: Yes, that is correct. Yeah.

Host:  As a tenant, how do you know if you're paying just the excess water portion or the full water usage?

Guest: So this can sometimes be a little bit of a confusing point as well. So as mentioned before, so full water usage can only be passed on to a tenant if the property is individually metered, water efficient and it's stated into the tenancy agreement. So that is all 3 points which must be met.

For example, if the premises are individually metered and most water devices are water efficient, but there's no water efficient dual flush toilets, then the property manager or owner cannot pass on the full consumption charges because the property is then technically not considered water efficient. 

At this point, the property owner must pay for reasonable amount of water charges for any period of time that the premises is not water efficient. I guess you may ask ‘what is a reasonable amount?’, and this should be discussed and negotiated between the tenant and the property manager. The agreed amount should also be included in that tenancy agreement.

Things to consider, though, when determining a reasonable quantity of water could include: 

• the number of people living in the property
• whether there are water efficient devices installed
• the land size of the property
• water usage charges information for similar properties in the local government area or provided by the supply authority
• any terms of the agreement that affect water usage, such as the watering of plants and the garden.

The tenant may be asked to pay excess water charges above the included amount as outlined in the agreement.

Host: There's so much to consider, isn't there? Whether it's excess water or full water usage. I know I've had some of these previously and it got quite confusing, so I’ve got a scenario for you, Michaela. When it comes to gardens and maintenance, quite a lot of water can be used in keeping a garden alive during a drought, which we're familiar with here in Queensland. Who's responsible and who pays?

Guest: Very, very good question there, Belinda. One we do get quite regularly here in our Contact Centre. So, I guess [the way] we look at it, tenants have a responsibility to keep the premises clean and in good condition as per the legislation. So regular household jobs like mowing and weeding are generally considered the tenant's responsibility, as it concerns the general maintenance, the standard condition of the premises.

Now the Queensland rental laws do not specifically reference the maintenance of gardens, fruit trees, lawns or gutters. In this situation, if you are renting a property that has gardens and lawns associated with it, you should discuss the maintenance arrangements of the gardens and lawns with the property manager or owner. The agreed arrangements should be then documented in the special terms section of that tenancy agreement before signing the tenancy agreement to rent the property.

It's important to also make sure the condition of the gardens and lawns are documented in the entry condition report.

Now, if the gardens, lawns and plants do take a fair amount of water to keep alive and in a similar condition, you may want to discuss and negotiate the related water usage and consumption with the property manager as it could be reflected in the water bill and then passed on full to the tenant. Again, remember to document all agreed arrangements in writing in the tenancy agreement. The local council water restrictions should also be considered at this point. The tenant may not be held responsible if lawns, trees, and other plants die because they simply are just complying with local laws.

Host: Yeah, I've been in some rental properties for, you know, over 5 years and the gardens and lawns can change so much between the start of the tenancy and the end of the tenancy, so it's really important you get that in the entry condition report.

So I’ve got another scenario for you now this one is more interesting, and Michaela, this did actually happen to me. This was real. This is not fake. OK, I had a pipe burst in a bathroom vanity in a rental property and it started to flood the bathroom. Luckily, I was home at the time. What should you do in this situation? Well, what I did? I switched the water off and contacted the managing party, who then arranged a plumber and covered the expenses. What should people do step by step in a situation where they find themselves in this position?

Guest: Well, first of all, Belinda, I can tell you, you did the right thing by switching off that water and obviously good to know that you knew what it was. Letting your property manager know also is great. Then they're across the problem.

When emergencies or accidents like this happen, the first thing you should do is try and stop the situation from getting worse. Next, you should also contact your property manager or owner immediately to let them know about the situation. More often than not, the managing party will appreciate knowing about it sooner rather than later, so they can also take action quickly to ensure your safety and prevent any damage to the property.

If the property manager has been notified and is taking action to sort the problem out, like in your situation, Belinda, then that's all good and well. If the property manager is not contactable after multiple attempts and is it is an emergency or an issue that impacts your health and safety or the liveability of the property, you can contact the nominated repairer in your tenancy agreement directly to get assistance.

Now the pipe burst would most definitely increase the water usage or consumption charges for the month. When working out how much to bill a tenant in these types of situations, parties need to talk to each other and agree on what would be a reasonable amount. Communication is key.

The difference in water charges would depend on multiple factors, such as how quickly the pipe is fixed, whether the water was able to be turned off after the incident, and if the tenant still had water access and basic amenities. You may be able to look at past water bills to get an idea of what a reasonable amount is. Supply authorities may be able to provide you some guidance as well. Whatever is agreed upon in terms of water charges passed on should be stated in writing to avoid any confusion about the matter when the bill is issued.

Host: Yeah. And I was lucky in that situation that they were paying for full water, so I didn't have to worry about that, so I was very lucky in that situation. And another hot tip for you - you know the drains that they have in bathrooms? Don't cover those up.

Guest: No, I think yeah, that would be your main area of water escaping.

Host: Yeah. I discovered that they're very useful. I found out why I shouldn’t cover those [laugh].

Now, what if the water usage in the property is high, yet there's not a detectable leak or usage pattern? What can you do to resolve this?

Guest: Yeah. So, another common one, we have tenants that may believe that their water usage is quite high when they get that bill. But they can't put it down to the reason why. Supply authorities, in this instance, may be able to provide guidance about the average water consumption for a property of a certain size.

I've also seen water bills that give you a comparison between the water usage in similar properties in the neighbourhood, which may be also a good indication of whether the water consumption is unusually high. Now tenants can ask the property manager to show them the water bill.

Apart from all of this, looking at the bill itself, a tenant or property manager could also conduct their own troubleshooting at the property, such as meter tests, and determine whether at that point a professional opinion in the matter is reasonable. In any case, communication is key and again, anything that is agreed upon should be put in writing.

Host: Yeah. Now when it comes to water bills from the provider, these also often include sewage costs. Can that also be charged to a tenant?

Guest: No. So, sewage costs and any other fixed charges such as your water access charges cannot be passed on to a tenant. If the property manager receives a water rebate, it should be passed on to the tenant if the tenant is paying for water consumption. Now, the property manager owner cannot charge the tenant for bore or pump water as well.

Host: So when we look at the managing parties and passing on bills to tenants, how do they do that?

Guest: Generally, your property owner will receive the water bill. They will pay the full amount and then provide their tenants with a copy of any water bills or evidence of water consumption to verify the amount to be charged. Tenants will not be billed directly by water supply authorities. Generally, this is in the name of the owner.

Tenants have one month to pay the agreed amount for water consumption after the property manager or owner provides evidence of the cost to the tenant. The property manager or owner cannot require the tenant to pay more than the billable amount. Now, the tenant can also not be charged the fee for when a payment is late.

Water billing periods are unlikely to align with tenancy period. It is important parties note down water meter readings on the entry and exit condition reports to calculate water consumption, particularly at the start and at the end of the tenancy.

Host: It’s important to keep a track of that and you feel like you're paying bills all the time.

Guest: Yes, absolutely.

Host: There's so much to cover when it comes to water leaks and usage and charges in a tenancy.

Guest: And especially that list of what is water efficient.

Host: Exactly. So, I guess it really helps you know to be informed and do your research. And I can't thank you enough, Michaela, for joining us today and helping us to get a great understanding of what we need to know when it comes to water charges and leaks.

Guest: Thanks so much for having me, Belinda.

Host: Thank you for listening to the Talking Tenancies Podcast. For more information about the residential Tenancies authority, visit rta.qld.gov.au.