NSW Rental Laws: Water Usage Charges and Water Efficiency Requirements for Landlords
If you’re a landlord in NSW and wish to charge tenants for water usage, it’s important to know that NSW rental laws have specific requirements that must be met.
Landlords can charge tenants for water usage only if the property is separately metered and meets the following conditions:
- The water charges must not exceed the amount the landlord pays for the tenant’s water usage.
- The tenant must be provided with a copy of the water bill or another form of evidence outlining the tenant’s water usage.
- The property must meet the required NSW water efficiency measures (outlined below).
For detailed information on water efficiency measures for rental properties, including requirements for showerheads, taps, hand basins, and toilets, visit NSW Fair Trading.
Meeting water efficiency measures
For a rental property to meet water efficiency measures, it must have:
Water Efficiency Requirements for Rental Properties (Effective 23 March 2025)
To ensure compliance with water efficiency standards, all rental properties must meet the following requirements:
Toilets
- All toilets must have dual flush functionality.
- A minimum 3-star Water Efficiency Labelling and Standards (WELS) rating is required.
Cold Water & Single Mixer Taps
- A maximum flow rate of 9 litres per minute applies to internal kitchen sinks and bathroom hand basins.
- Exemptions: This flow rate requirement does not apply to bathtub taps, laundry sinks, washing machines, dishwashers, or outdoor taps.
Shower Heads
- Shower heads must have a maximum flow rate of 9 litres per minute.
Leak Prevention
- No leaking taps or toilets are allowed at the start of a tenancy.
- Repairs, upgrades, or new installations of water efficiency measures must also ensure no leaks on the property.
These regulations align with sustainable water usage and help reduce water waste in rental properties. Compliance ensures better efficiency, lower water bills, and environmental benefits.
Charging tenants for water usage
If a landlord is charging a tenant for water, then water usage charges should be paid separately to rent.
Billing periods for water usage are unlikely to align with the rental agreement. The initial condition report at the start of the tenancy should record the water meter reading to ensure the tenant does not pay for another person’s water usage.
A landlord or agent must request payment within 3 months of the bill being issued and give the tenant at least 21 days to pay.
If a tenant believes they are being incorrectly charged for water usage, they should continue to pay the water usage until the issue is resolved.
If you have questions about your specific responsibilities or need advice on your rental property’s water efficiency, feel free to contact your property manager or get in touch with the team at Moshav Realty. We are here to guide you through the process of maintaining a compliant rental property.
See link below to NSW Fair Trading Fact Sheets