Water, Gas & Electricity
Generally, you pay the water rates and the tenant pays for their consumption of utilities. The prescribed tenancy agreement requires you to indicate whether the electricity, gas and water services to the rental property are separately metered.
If there is no separate metering for any of these services, the prescribed tenancy agreement requires you to put in a calculation about how the tenant’s costs will be worked out.
For example, a calculation for electricity may be as follows:
$ total amount of bill ÷ total number of bedrooms in the apartment block × number of bedrooms in the rental premises in this tenancy agreement.
It is important to include these calculations as the tenant is not obliged to pay a utility bill unless there is written agreement about how the bill will be calculated. You should note that if the tenant receives their electricity bill from you rather than directly from the electricity supplier, you cannot charge the tenant any amount other than the consumption cost. You cannot add an account or administration fee.
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Meter reading
Where it is necessary to accurately account for consumption, it may be reasonable to organise a special meter reading. This should be recorded at the start and end of a tenancy, in Part C of the prescribed tenancy agreement. This will reduce the likelihood of disputes over costs, which are a common area of concern for tenants.
A Tip!
Since all water consumed is chargeable to your tenant, you may want to share the costs of the water bill to encourage the tenant to water lawns and gardens. The prescribed tenancy agreement lets you specify what percentage of the water consumption costs the tenant is required to pay.