October | Water, Utility and Service Charges

Important Rental Law Changes for Landlords – Effective 30/09/2024

As of 30th September 2024, significant updates have been made to rental law, particularly in relation to water, utility and service charges for tenants. These changes place additional responsibilities on landlords and property managers to ensure that tenants are correctly invoiced for service charges. Understanding these updates are crucial for staying compliant and ensuring smooth operations. Here’s what landlords need to know:

Water, Utility, and Service Charges:

If tenants are responsible for paying water or other service charges, landlords and property managers must now provide tenants with a copy of the relevant service provider’s bill. The bill must be forwarded to the tenant within four weeks of the landlord or property manager receiving it.

• Key Compliance Requirement: If a tenant does not receive the bill within the four-week window, they are not required to pay for that service.
• Example: This includes charges for utilities like water, where the bill issued to the property owner by the water provider shows how much water was used in the property.

Water Invoicing for Landlords:

Water invoicing compliance is key under the new laws. We can only pass on water charges to tenants if the investor (landlord) sends us the water bill. If the bill is not forwarded within the 30-day window from the received date, tenants are not required to pay for the water charges. To ensure a smooth process:

• Can We Pay Your Council Rates, Body Corporate, and Water Bills? Consider allowing us to manage these payments on your behalf to avoid delays. By centralising these responsibilities, we can ensure that all necessary bills are paid promptly.
• Take Action Now: Contact your utility provider today and request that all future bills (council rates, body corporate fees, and water) be sent directly to RayWhiteMaroochydore@email.propertyme.com. This will allow us to process the bills within the required timeframe and avoid any unnecessary issues.

Handling Water Consumption Charges:

When forwarding water consumption charges to tenants, landlords or property managers must ensure the following steps are followed:

1. Provide Supporting Documents: Along with the invoice, attach the document from the service provider detailing the charges.
2. Partial Billing Periods: If issuing charges for a partial billing period (between two bills), it’s important to record the water meter reading on both the Entry Condition Report and the Exit Condition Report. Tip: Taking photographs of the meter readings can serve as evidence and ensure accuracy.
3. Rate Calculation: For partial billing periods, water consumption charges must be calculated using the same rate as the most recent bill issued by the service provider.

Sub-Metered Properties:

If the property is sub-metered, while the legislation does not explicitly detail how landlords should meet these new requirements, it is recommended to follow the same procedure:

• Sub-Meter Reads: Take a sub-meter reading when you receive the relevant service document and invoice the tenant accordingly. Be sure to provide supporting evidence, including photos of both the current and previous meter readings, and details on the kL (kilolitres) used.

Best Practices for Compliance:

To ensure timely processing of utility bills and avoid any disruptions, it’s recommended that landlords consider having utility bills sent directly to the managing agency. This will help property managers process and forward them to tenants within the required timeframe.

If clients are resistant to this arrangement, property managers should clearly explain the importance of forwarding bills promptly so tenants can be correctly invoiced within the legal timeframe.

These updates emphasise the importance of transparency and timely communication between landlords, property managers, and tenants regarding utility charges. By adhering to these requirements, landlords can ensure compliance with the new regulations, avoid disputes, and maintain positive relationships with their tenants.

By following these new rules closely, landlords can continue to provide efficient and legally compliant services to their tenants.