Understanding Water Charges in New Zealand Tenancies
In a residential tenancy in New Zealand, the responsibility for water charges is determined by specific provisions within the Residential Tenancies Act 1986. Generally, water charges are divided into two categories: fixed charges and usage charges.
- Fixed Charges: These are regular, ongoing costs for water services that do not vary with the amount of water consumed. Examples include daily supply charges or a portion of local body rates allocated to water infrastructure. Unless specifically agreed otherwise under lawful conditions, landlords are typically responsible for these [Source: Residential Tenancies Act 1986, s 39(1)(e)].
- Usage Charges: These are costs directly related to the volume of water consumed by the household. This article primarily focuses on the conditions under which tenants may become responsible for these charges.
A residential tenancy is the legal arrangement where a landlord permits a tenant to occupy residential premises in exchange for rent [Source: Residential Tenancies Act 1986, s 3]. A tenancy agreement is a legally binding contract between a landlord and a tenant outlining the terms and conditions of this arrangement [Source: Residential Tenancies Act 1986, s 13].
When Can Landlords Charge Tenants for Water Usage?
A landlord may only charge a tenant for water usage if all of the following conditions are met:
- Separate Water Meter: The premises must have a separate meter that measures only the water supplied to that specific tenancy. If the property is not separately metered (e.g., multiple flats on one meter), the landlord is responsible for all water charges [Source: Residential Tenancies Act 1986, s 39(1)(e)(i)].
- Water Efficiency Standards Met: The tenancy agreement must state that the landlord will ensure the premises meet the water efficiency standards specified in regulations under the Residential Tenancies Act 1986 [Source: Residential Tenancies Act 1986, s 39(1)(e)(ii)].
- Tenancy Agreement Specifies Liability: The tenancy agreement must explicitly state that the tenant is liable for water usage charges [Source: Residential Tenancies Act 1986, s 39(1)(e)].
- Itemised Invoice Provided: The landlord must provide the tenant with an itemised invoice for water consumption, showing the amount of water used and the cost [Source: Residential Tenancies Act 1986, s 39(2)].
If any of these conditions are not met, the landlord cannot charge the tenant for water usage, and the landlord must pay for all water charges.
Water Efficiency Standards Explained
The water efficiency standard is part of the Healthy Homes Standards, which are set out in the Residential Tenancies (Healthy Homes Standards) Regulations 2019. These regulations aim to ensure rental properties are warm, dry, and healthy. For water efficiency, landlords must ensure that showers, toilets, and internal tapware (excluding bath taps) are reasonably water efficient [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, Schedule 1, Part 5, clause 1].
Specifically, this means:
- Showers: Must have a maximum flow rate of 9 litres per minute [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, Schedule 1, Part 5, clause 2(a)].
- Toilets: Must have a maximum flush volume of 4.5 litres (full flush) and 3 litres (half flush) [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, Schedule 1, Part 5, clause 2(b)].
- Internal Tapware (excluding bath taps): Must have a maximum flow rate of 3.5 litres per minute [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, Schedule 1, Part 5, clause 2(c)].
A landlord must ensure a tenancy complies with the water efficiency standard [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, regulation 14].
Landlord's Obligations
If a landlord intends to charge a tenant for water usage, they are obligated to:
- Ensure the property has a separate water meter for the tenancy [Source: Residential Tenancies Act 1986, s 39(1)(e)(i)].
- Ensure the property meets the prescribed water efficiency standards [Source: Residential Tenancies Act 1986, s 39(1)(e)(ii); Residential Tenancies (Healthy Homes Standards) Regulations 2019, regulation 14].
- Clearly state the tenant's liability for water usage in the tenancy agreement [Source: Residential Tenancies Act 1986, s 39(1)(e)].
- Provide the tenant with an itemised invoice for water consumption [Source: Residential Tenancies Act 1986, s 39(2)].
- Pay for all fixed water charges [Source: Residential Tenancies Act 1986, s 39(1)(e)].
Tenant's Obligations
If all the conditions for charging water usage are met, the tenant is obligated to pay for the water consumed as per the itemised invoice provided by the landlord. If the conditions are not met, the tenant is not responsible for water usage charges.
Resolving Disputes
Disputes between landlords and tenants regarding water charges, or any other aspect of a residential tenancy, can be taken to the Tenancy Tribunal for resolution. The Tenancy Tribunal is an independent judicial body that resolves disputes between landlords and tenants under the Residential Tenancies Act 1986 [Source: Residential Tenancies Act 1986, s 77].
When to Seek Independent Legal Advice
When navigating complex tenancy issues, especially concerning specific clauses in a tenancy agreement or disputes over charges, obtaining independent legal advice is often beneficial. This can involve contacting Tenancy Services for information or seeking assistance from a Community Law Centre. Legal professionals can provide guidance on specific situations and help clarify rights and obligations under the Residential Tenancies Act 1986.