Property

29 November 2007

Water and Other Legislation Amendment Bill 2007

The Water and Other Legislation Amendment Bill 2007 (Bill) was introduced into parliament on 16 October 2007 and passed on 15 November 2007. The amendments will commence upon proclamation of the Act. The Bill amends a number of Acts. This focus article is directed to amendments which affect residential tenancies and multi-unit residential and non residential properties.

Residential tenancies

Currently the Residential Tenancies Act does not permit recovery of water consumption charges from the tenant, unless the premises are separately metered or the water is delivered. In addition the landlord is always responsible for the cost of a reasonable amount of the water service charges for the premises.

Under the amendments to the Residential Tenancies Act water consumption charges may be fully recovered from the tenant if the premises are water efficient (toilets, shower heads and internal cold water taps are to be water efficient to the level prescribed under regulation).

Water consumption charges representing a reasonable quantity of water can be recovered from the tenant if the premises are not water efficient.

Despite the above the landlord cannot recover from the tenant any water service charges which are a `fixed charge’ for supplying water to the premises (e.g. water access charge).

Water leaks are to be considered emergency repairs and tenants may arrange the repairs by a suitably qualified person if the landlord/nominated emergency repair person cannot be contacted.

Advice

You should instruct your real estate agent that at the next expiry date and for all new tenancy agreements for your properties that a clause be inserted requiring the tenant to pay water consumption charges for the property. You should ensure that the premises are water efficient, retain a copy of any receipts showing that those measures being implemented and notify the tenant once this has occurred. For existing tenancy agreements these provisions will not take effect until 1 April 2009.

Multi-unit residential and non residential properties

Through amendments proposed to various Acts from 1 January 2008 it will be mandatory to install sub-meters in all new community title schemes both residential and commercial.

For further assistance or enquiries please contact:

Rodney Bell on 07 3233 8936.