Investing in real estate is a lucrative venture, but it comes with a myriad of responsibilities, especially when it comes to complying with local regulations. In Queensland, Australia, one aspect that demands careful attention is water charging and compliance for investment properties. This blog aims to shed light on the key considerations and obligations property owners need to be aware of to ensure a smooth and lawful management of water-related matters.
Understanding Water Charging
Water charging in Queensland involves the fair and equitable distribution of water usage costs among tenants and property owners. The Residential Tenancies and Rooming Accommodation Act 2008 outlines the regulations regarding water charges for residential properties. Generally, property owners can pass on water consumption costs to tenants, provided certain conditions are met.
Tenants can only be charged for all water consumption if:
the property is individually metered (or water is delivered by vehicle), and
the property is water efficient, and
the tenancy agreement states the tenant must pay for water consumption
The property owner must pay all fixed charges, including sewerage charges. The tenant cannot be charged more than the billable amount.
Proving water efficiency
It is a good idea for the property manager/owner to be able to demonstrate the presence of water efficient fittings by having copies of:
plumbing reports (or compliance certification)
receipts
packaging
warranties or instruction manuals for taps and showerheads
Only internal cold water taps installed over a hand basin, kitchen sink or laundry trough (including single mixer taps) need to be water efficient. Other taps such as bath tub taps, outside taps for the garden, or taps which supply washing machines or dishwashers do not have to be water efficient to meet the requirement.
Compliance with Water Efficiency Standards
Queensland has strict water efficiency standards that property owners must adhere to when renting out their investment properties. The property needs to meet the minimum water efficiency standards, which include:
1. Installation of water-efficient devices: Property owners must ensure that all taps, showerheads, and toilets in the premises are water-efficient.
2. Obtaining a water efficiency certificate: Before entering into a tenancy agreement, property owners must provide tenants with a water efficiency certificate. This certificate is obtained through a qualified plumber, confirming that the property meets the water efficiency standards.
If the property is not water efficient, but individually metered and the agreement states the tenant must pay for water, the property manager/owner must pay for a 'reasonable amount' (not defined by the Act) of water consumption and the tenant may be required to pay excess water charges.
Investing in property in Queensland comes with the responsibility of adhering to water charging regulations and efficiency standards. Property owners who prioritise compliance and open communication with tenants not only fulfill their legal obligations but also create a positive and sustainable living environment. By staying informed and proactive, investors can navigate the complexities of water management in investment properties and contribute to the overall water conservation efforts in Queensland.
Talisha Buttsworth - Gladstone Property Manager
Island Sands Asset Management
assetmanager1@islandsandsam.com.au
0450 199 628
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