NSW Rental Water Charges Rule Updates - Read This Landlords!

Water charges for rental property in NSW come with specific regulations that landlords must follow. Recent updates to these rules mean that landlords must stay informed about their responsibilities to avoid disputes and unexpected costs, but working with experts like Eze-Flow Plumbing makes it easier to meet legal obligations and keep rental properties in line with current standards.

Keeping properties compliant with water efficiency standards and billing requirements helps maintain smooth and successful tenancy agreements. Here’s a closer look at NSW rental water charges regulations and what these rule updates mean for you as a landlord.

An Overview of the NSW Rental Water Charges: 

In New South Wales, the question of who pays for water in rental properties depends on a few factors, such as:

Separately Metered Properties

For tenants to be responsible for water charges, the rental property must have its own separate water meter. Without this, landlords cannot pass on usage costs.

Water Efficiency Measures

Landlords can only charge tenants for water usage if the property meets certain water-saving standards. This includes the installation of water-efficient fixtures like taps and showerheads. These measures are designed to promote responsible water use in rental homes.

Usage-Only Charging

Tenants can only be billed for the water they actually use. Landlords are not allowed to charge for fixed service fees or any costs that aren’t based on usage.

For both landlords and tenants, staying compliant with these rules and keeping proper documentation helps prevent misunderstandings, maintains transparency and supports a fair rental experience for everyone involved.

Rules Governing Rental Property Water Charges

Under Section 39 of the Residential Tenancies Act 2010 (NSW), landlords can only pass water charges for rental property on tenants if certain conditions are met. The property must have a separate water meter and it must comply with minimum water efficiency standards. In addition, tenants must receive a copy of the water bill and be given at least 21 days to make payment.

If a separate water meter is not installed, landlords are responsible for the water costs, unless the rental agreement clearly states that water usage charges are included in the rent. Following these rules for NSW rental water charges helps make sure transparency and fairness for both landlords and tenants while reducing the risk of disputes.

Water Efficiency Standards for Water Charges for Rental Property in NSW

To legally charge tenants for water usage in NSW, landlords must make sure that the property strictly meets the set water efficiency standards. These requirements for water charges for rental property are put in place to promote water conservation and make sure fair charging practices.

No Leaking Taps or Toilets

At the start of the tenancy and after any repairs or installations there must be no leaking taps or toilets anywhere on the property.

Showerheads

All showerheads must have a maximum flow rate of 9 litres per minute to reduce water waste and encourage more efficient water use.

Taps

Internal cold water taps, as well as single mixer taps in kitchens and bathrooms, must also meet the 9 litres per minute flow rate.

New Regulations for NSW Rental Water Charges

Since 23 March 2025, a new regulation on water efficiency for rental properties has required all toilets in NSW rental properties to be dual-flush with a minimum 3-star WELS rating. This update was part of the state’s ongoing effort to improve water efficiency across all rental properties.

For Tenants

Tenants are only obligated to pay for water usage if all water efficiency standards have been met and documented. This includes the requirement for dual-flush toilets, along with other water-saving measures such as taps and showerheads. If these conditions weren’t met, tenants were not required to pay for water usage.

For Landlords and Agents

To legally charge tenants for water usage, landlords and managing agents have had to make sure that all necessary water-saving measures are in place. They also need to provide complete documentation and fully disclose these details to tenants before any rental property water charges are applied. Failure to comply means they couldn’t charge the tenants for water usage costs.

How Landlords Can Comply with the New Regulation for Rental Property Water Charges in NSW

For Landlords and property managers to be able to charge their tenants for rental property water charges, the property must meet the new water efficiency regulation, which specifically requires dual-flush toilet installation.

Dual-flush toilets offer two flushing options: a full flush for solids and a half flush for liquids, both of which help conserve water. Under the new regulation, which came into effect on 23 March 2025, all toilets in rental properties were required to meet a 3-star WELS rating and be dual-flush. These installations had to be carried out by licensed plumbers to guarantee compliance with the required standards.

Landlords who acted early were able to avoid falling behind on compliance. Those who haven’t yet taken action on their rental property water charges compliance should reach out to a professional plumber, like Eze-Flow Plumbing, for an inspection, expert advice and installation of compliant toilets. Taking prompt action makes sure that properties meet the new requirements and helps avoid potential issues down the line.

Contact Eze-Flow Plumbing for NSW Rental Water Charges Compliance!

With the new water efficiency regulations already in effect, time is ticking for landlords to make their properties compliant with the latest rental property water charges requirements so they can legally pass on water charges to renters. Eze-Flow Plumbing is here to help you stay ahead of the curve!

We offer services like installation of water-saving fixtures and dual-flush toilets. Our team is also an expert in leaking toilet repairs, tap replacements and fixing burst pipes.

We help you make sure that your property meets the NSW rental water charges regulations so you can avoid penalties and maintain smooth sailing rental management.

A quick compliance check now could save you from hefty charges in the future. Give us a call for reliable, expert plumbing services around Sydney’s North Shore and Northern Beaches!