Welcome
Welcome to the second edition of The Letterbox, NSW Fair Trading’s e-newsletter on tenancy issues. If you are a tenant, a landlord or a property manager, this newsletter is for you.
This edition focuses on water efficiency measures and provides answers to many questions from our subscribers on this topic.
In the next edition of The Letterbox, due for release at the end of September 2011, our in-depth feature subject will be alterations by tenants. Once again, we invite you to email us your questions on this topic by Friday 2 September 2011 at theletterbox@services.nsw.gov.au and we will do our best to include the answers in the next edition.
Landlords can pass on water usage charges to tenants provided all the following minimum criteria have been met:
- the rental premises must be individually metered (or water is delivered by vehicle, such as those with water tanks on rural properties) and
- the charges must not exceed the amount billed for water usage by the water supplier and
- the rental premises must meet required 'water efficiency' standards.
A rental property is considered water efficient if it meets these standards:
| Water saving devices | Minimum water efficiency standard required |
| Internal cold water taps and single mixer taps for kitchen sinks and bathroom hand basins | A maximum flow rate of nine litres per minute |
| Showerheads | A maximum flow rate of nine litres per minute |
| No leaking taps | No leaking taps anywhere on the premises at the start of the tenancy or when the other water efficiency measures are installed |
If a landlord and tenant are entering a new agreement after 31 January 2011 the landlord needs to ensure the premises are water efficient in order to pass on water usage charges.
For all tenancies in place before 31 January 2011, the landlord has 12 months to make the premises water efficient. Tenants can continue to be asked to pay water usage charges during the transitional period even if the premises are not water efficient. After 31 January 2012, tenants can only be asked to pay if the premises have been made water efficient.
Answers to your water efficiency questions
Do I have to install water efficiency devices?
No. The installation of water efficiency devices is optional, however the Residential Tenancies Act 2010 states that if you wish to pass water usage charges on to tenants in a rental property, the property must be water efficient which includes the installation of water saving devices.
Are all water efficiency devices the same?
No. Water efficiency devices are given a WELS star rating based on the average flow rate that the device produces as defined in AS/NZS 6400. More information can be found on the WELS website (www.waterrating.gov.au).
How much notice do I need to give to my tenant to access the property to install the water efficiency measures?
You can access the premises at any time with the tenant’s consent. Otherwise, the law requires you to give the tenant at least 2 days notice to have access to carry out maintenance, such as installing water saving devices.
How often do I need to check the water efficiency measures?
The water efficiency measures should be installed at the start of the tenancy and noted on the ingoing condition report for the premises. You do not need to check the water efficiency devices during the tenancy.
If the existing tenant moves out, you will need to ensure the premises are water efficient when a new tenant moves in if you want to keep charging for water usage. If the previous tenant has removed the water efficiency devices, landlords are able to make a claim on their bond to recover the cost of reinstalling the devices.
My tenant does not want flow restrictors and is happy to sign a document saying they will pay for water. Can I do that?
No. Under the tenancy laws, a landlord cannot pass on water usage charges directly to their tenant unless the property has the required water efficiency measures in place for showerheads and certain taps. It may be useful to discuss the water efficiency requirements with your tenant and highlight the water and energy savings they will benefit from, once the property is water efficient. There are also many different types of flow restrictors you can install on your showerheads so that the quality of the water flow is not reduced.
Will water saving devices work with all hot water heaters?
No. Older style gravity fed hot water heaters (generally in the roof) do not provide adequate water pressure to enable a water saving shower device to work at its optimum and some instantaneous hot water heaters are also not compatible. Newer continuous flow models may work with water saving shower devices as most work with lower minimum flow requirements. If you are unsure, it is recommended that a plumber be consulted to advise whether a water saving device is suitable for each application before installation.
What if a water saving device doesn’t work with my hot water heater?
You are not required to install the water saving device. However, you are not able to pass on any water usage charges to a tenant if the property is not water efficient in accordance with the Residential Tenancies Act 2010.
How can I make the premises water efficient if the water saving device doesn’t work with my hot water heater?
You should consult a qualified plumber for advice. Options may include exchanging the hot water heater to a unit that is compatible with water saving devices.
If a landlord decides not to make their property water efficient, is the agent acting unlawfully in sending water invoices to the tenant knowing the property does not comply?
The agent in these circumstances may be in breach of the professional rules of conduct under the Property, Stock and Business Agents Regulation 2003. The rules state that an agent must deal honestly, fairly and professionally with all parties involved in a property transaction. Failing to comply with the rules of conduct can attract penalties and result in disciplinary action against the agent.
I was told I would have to pay for water usage but to date, have not been given a bill. Where do I stand if in nine months’ time I am handed a bill that is six months old?
You only have to pay the water usage if the landlord or agent gives you a copy of the part of the water bill setting out the water usage charges payable - or some other evidence showing how your usage was calculated - within 3 months of getting the bill.
Is the landlord able to install water efficient taps by themselves?
Yes. The landlord can install the water efficiency measures themselves or use a licensed plumber.
Do the premises have to be certified water efficient by a licensed plumber?
No. There is no requirement to provide a report from a plumber or the water supply authority certifying that the property is water efficient. The presence of the water efficiency measures needs to be noted on the ingoing condition report for the premises. It may also help to keep:
- invoices or file notes of work done
- receipts for any items bought
- packaging, warranties or instruction manuals.
Are there any rebates or Government bodies that offer a reduced rate for installing water efficiency measures?
Some local councils and water authorities offer rebates or other assistance to people who install devices which save on water and energy consumption and assist the environment. Some local councils run free showerhead exchange days and distribute Do-It-Yourself Water saving kits which include flow regulators and tap aerators. Contact your local council or water authority to inquire about assistance available in your area.
If the property has a bath, but no shower, do the bath taps have to be changed?
No. The water efficiency measures do not apply to bathtub taps.
Do the water efficiency measures apply to all internal taps, or only to some taps? Do they apply to external taps?
The water efficiency measures apply to showerheads and to internal cold water taps for the kitchen sink and bathroom hand basin. The requirements do not apply to other taps in the premises such as bathtub taps, laundry taps, outside taps for the garden, or taps for washing machines and dishwashers.
Who pays for the cost of installing water efficient taps? The tenant or the landlord?
The landlord is responsible for the cost of making the premises water efficient.
For more information about water efficiency measures view or download the following fact sheets:
- Paying water charges - information for tenants
- Passing on water charges - information for landlords
The New tenant checklist is now available in 12 community languages. The checklist is designed to inform tenants about their rights and responsibilities at the start of their tenancy. By law, landlords and agents must give all prospective tenants a copy of the checklist before they sign the lease.
The New tenant checklist highlights issues that tenants should think about, such as the condition of the premises, the length of the lease, upfront costs and it gives useful tips for hassle-free renting. Tenants can work through the checklist to make sure they properly understand the lease and are aware of common problems which may arise.
The checklist is available in the following languages:
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Fair Trading videos give useful real estate tips
Real estate agents and people interested in buying and selling property can now learn more about the industry thanks to a series of short videos on NSW Fair Trading’s YouTube channel. The first six online videos cover the following topics
Buying and selling real estate
What are the rules and regulations in NSW?
Renting out your investment property
Renting out your investment property to tenants
Real estate agents’ responsibilities to landlords
What are the agents’ duties under the law?
Real estate agents and trust accounts
What are the rules and regulations for trust accounts?
Buying and selling real estate at auctions
Tips for bidders and auctioneers before, during and after an auction
How to pick a good real estate agent
What are the agent’s responsibilities? How do you pick the right agent?
The videos feature interviews with Fair Trading experts. The segments were initially broadcast on the Real Estate News show on SKY Business Channel earlier this year. NSW Fair Trading plans to produce more videos in the future.
NSW Fair Trading has released a FREE mobile phone app ShopSmart for iPhone and Android.
ShopSmart allows you to:
- answer common shopping and supplying questions while on the go, behind the counter, under the bonnet or on site
- store photos of receipts, great for tax time
- set reminders for when your gift-card and warranties are running out, and lay-by payments are due.
The information provided contains the recent changes to shopper rights when purchasing goods or services as specified in the new Australian Consumer Law (ACL), which began in January 2011.
Download ShopSmart:
• iPhone version
• Android version
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More information about tenancy
If you have questions about tenancy or require assistance with a tenancy problem or dispute, NSW Fair Trading can help:
- The Fair Trading website has a wealth of information about tenancy, including a video on the recent tenancy reforms and written information in several community languages. You can also download tenancy fact sheets for tenants and landlords.
- Fair Trading has a team of information officers trained in the tenancy laws. Call 13 32 20 and choose option 2 for tenancy enquiries.
- If you prefer to speak to someone face to face, go to the Fair Trading Centres web page to find your nearest centre.
- There are Tenancy Advice and Advocacy Services available across New South Wales which provide tenants with information, advice and advocacy. Visit the Tenants’ Union website at www.tenants.org.au for a full list of service providers.
The last edition of The Letterbox asked our readers if they would follow NSW Fair Trading if we were on Facebook. 26% of respondents answered yes, while 74%replied no. Fair Trading is currently considering setting up a Facebook page, and we will use this feedback to make sure we continue to communicate with our stakeholders in the best possible ways.
We want to make sure The Letterbox is relevant and interesting. Please send us your comments, suggestions or topics you wish covered to theletterbox@services.nsw.gov.au.
Remember, in our next edition, due for release at the end of September 2011, we will be focusing on the topic of alterations by tenants. If you have any questions on this subject, email them to us by Friday 2 September at theletterbox@services.nsw.gov.au and we will do our best to include the answer in the September edition.
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