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Australian Tenancy Law: Water Charges for Unmetered Granny Flats

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Tenants in secondary dwellings, such as granny flats, often face issues regarding water usage charges when a separate meter is not present. Australian law outlines specific conditions under which landlords can charge tenants for water usage.

Conditions for Water Charges

For a landlord to legally charge a tenant for water usage, the following conditions must typically be met:

  • The property must be individually metered, or water must be delivered by vehicle.
  • The property must adhere to water efficiency standards (e.g., specific flow rates for taps and showerheads, dual-flush toilets).
  • The tenancy agreement must explicitly state that the tenant is responsible for water usage payments.

If any of these conditions are not met, particularly the requirement for a separate meter, the landlord is responsible for covering water costs.

Granny Flats and Shared Meters

When a granny flat shares a water meter with a main house, landlords are legally unable to enforce water usage charges without a separate meter. This is because such charges cannot be based on actual consumption. Attempts by some landlords to negotiate flat fees or percentage splits are not binding unless explicitly agreed upon in writing by the tenant.

Calculating Fair Amounts

If a sub-meter exists (not read by the water authority), landlords or agents are required to manually record readings and invoice tenants based on the actual usage. Without a separate meter, any estimated water charge is unenforceable under tenancy law.

Tenant Actions

Tenants concerned about unfair water charges can take several steps:

  1. Review the lease: Check if the agreement mentions water charges (usage or service fees) and if the property is separately metered. If not, payment can be refused.
  2. Request evidence: Landlords are obligated to provide copies of the water bill, meter readings, or clear evidence of the method used to calculate the tenant's portion of charges within a reasonable timeframe.
  3. Submit written concerns: A formal letter to the landlord should clearly state the issue, reference relevant laws, request an adjustment, and specify a response timeframe. It should also indicate an intention to escalate the matter to the tenancy authority if a satisfactory response is not received.
  4. Seek expert advice: Contact the relevant state's tenancy authority (e.g., Residential Tenancies Authority, Fair Trading, Consumer Affairs) or a local Tenants’ Union for guidance.
  5. Dispute resolution: If the issue remains unresolved and the landlord continues to insist on billing for usage, this may constitute a breach of tenancy laws. Tenants can lodge a dispute with the appropriate state tribunal (e.g., QCAT, NCAT, VCAT) to seek an order declaring the charges unlawful and a refund for any overpaid amounts.

In summary, if a granny flat lacks its own water meter, tenants are generally not required to pay for water usage. Accurate measurement is a prerequisite for any fair calculation, and without it, the law typically favors the tenant.