Who pays water rates during a tenancy?

Who pays water rates during a tenancy

Section 39 of The Residential Tenancies Act 1986 states that “The landlord is responsible for all outgoings in respect of the premises that are incurred whether or not the premises are occupied and are incurred for common facilities.

So who pays for what part of the water charges

The landlord pays for water charges if the water account is in the landlord’s name. The landlord can then seek reimbursement from the tenant .

The tenant pays for water charges if:

• the property has a separate water meter
• the water supplier provides water to the property on a metered basis
• the charges can be exclusively attributed to the tenants occupation of the premises.

A metered water supply allows a water supplier to charge for the amount of water used.

Water Volumetric Charges are the meter water usage

Water suppliers may charge for wastewater in different ways, including fixed charges or charges for the amount of wastewater produced. This varies around the country.

Tenants may be charged for the wastewater they produce. Some water suppliers calculate wastewater based on how much water they supply.

In Auckland for example Watercare charge a volumetric Waste Water charge which is payable by the tenant.

Landlords are responsible for fixed wastewater charge to a tenant

What happens if water charges aren’t paid

If the landlord fails to pay the water charges the tenant may take a claim to the tenancy tribunal against the landlord for not supplying water to the property and the owner may be faced with a fine.

Section 45 of The Residential Tenancies Act 1986 talks about landlords responsibilities.  One of those responsibilities is “The landlord shall not interfere with the supply of gas, electricity, water, telephone services or other services to the premises.  It further and states that a contravention by the landlord is declared an unlawful act.

So if the landlord doesn’t pay the supplier and the water is disconnected is this a contravention of the Act? and if so the tribunal will consider this unlawful and unlawful acts carry fines.  My advice is for the landlord to pay the water supplier regardless of whether the tenant has reimbursed the landlord for the water charges.

If the tenant doesn’t reimburse the landlord for the water charges, the tenant is in breach of their tenancy agreement. The landlord can issue a 14-day notice to remedy to give the tenant 14 days to pay. If the tenant still doesn’t pay, the landlord can apply to the Tenancy Tribunal who will order the tenants to reimburse the landlord.

Written by Hollie Joss 30^th May 2016