As a property investor it is important to stay abreast of changes to rental laws. Whilst your property manager will be across these, being aware of such laws can help you to ensure you (1) select the best possible investment, (2) manage your property appropriately, and (3) ensure optimum rent.
If you like to invest in different states, understanding the different laws in each state and what this could mean to you in terms of costs, is also important.
Our blog article in January titled "Changes to NSW Rental Laws" articulates some of the new laws being introduced into NSW.
The following information focuses on the new changes relating to water efficiency.
Requirements for a Landlord to charge for water usage
A landlord can only charge a tenant for water usage in NSW if the rented property meets certain requirements. These are:
- The property must be separately metered,
- The charges are not more than the amount the landlord must pay for the renter’s water usage,
- The renter has been given a copy of the bill setting out the charges, or other evidence of the renter’s water usage, and
- The property meets the water efficiency measures (see below).
Visit NSW Fair Trading for more information on water efficiency measures relating to shower heads, taps in the kitchen and bathroom hand basins, and toilets.
A landlord will not be able to pass on water usage charges to the tenant unless the property meets all the water efficiency measures from 23 March 2025.
What are the water efficiency requirements
A property must meet the following water efficiency measures:
- Shower heads have a maximum flow rate of 9 litres a minute,
- Internal cold water taps, and single mixer taps for kitchen sinks and bathroom basins have a maximum flow rate of 9 litres a minute
- There are no leaking taps or toilets anywhere on the property at the start of the tenancy and whenever the other water efficiency measures are installed, repaired or upgraded
- From 23 March 2025, toilets are dual-flush and have a minimum 3-star WELS rating.
Checklist for Landlords
Water efficiency measures apply to existing and new tenancy agreements, where a landlord wishes to charge the tenant for water usage.
Download this fact sheet to help in understanding water efficiency requirements from 23 March 2025.
(DATE UPDATED - 5 Feb 25. The majority of the above content is courtesy of NSW Fair Trading. We will endeavour to update this blog as the Government policies become clearer, however, you should always seek up to date advice from NSW Fair Trading).
