Do Tenants Pay Water Bills? Understanding Water Usage Charges for Investment Properties in QLD

As a Queensland landlord, it's important to understand your rights and responsibilities when it comes to passing on water usage charges to tenants. Water billing can be a source of confusion for both landlords and renters, so having clarity, and complying with legislation, is key to protecting your investment and maintaining transparency.

This guide breaks down what you can charge tenants for, what you can’t, and what obligations must be met under Queensland tenancy law.

What Water Charges Can Landlords Pass On?

In Queensland, landlords are permitted to pass on full water usage costs to tenants, but only when all the following criteria are met:

• the property is individually metered (or water is delivered by vehicle)

• the property is water efficient

• the tenancy agreement states the tenant must pay for water consumption

• the property manager/owner provides the tenant with a copy of the water consumption bill within 4 weeks of receiving it from the service provider.

If any of these conditions are not met, you may only be able to pass on a portion of the usage,or none at all.

What Charges Cannot Be Passed On?

Your water bill will include multiple charges, but not all of them are tenant responsibilities.

You can pass on:

• State bulk water charge 

• Water usage charges

You cannot pass on:

• Fixed Access Charges

  (including Water Access Charge and

  Sewerage Access Charge)

• Sewerage Usage Charge

  (may appear on the bill as fixed or variable)

These fixed infrastructure charges are considered part of ownership and must be covered by the landlord.

What Makes a Property 'Water Efficient'?

To pass on full water usage charges, your investment property must meet the minimum water efficiency standards under the Residential Tenancies and Rooming Accommodation Act. These include:

• Toilets: Dual flush, max 6.5L full / 3.5L half flush, and average flush volume not more than 4L.

• Shower heads: Maximum flow rate of 9L per minute.

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• Internal cold water taps (kitchen, bathroom, laundry): Maximum flow rate of 9L per minute.

Do I Need to Provide a Certificate Confirming the Property Is Water Efficient?

No, a water efficiency certificate is not legally required under Queensland legislation. However, it is strongly recommended as a best practice.

If a tenant disputes their obligation to pay for water usage, arguing that the property does not meet water efficiency standards, the responsibility lies with the landlord (or managing agent) to provide evidence of compliance.

The most reliable form of proof is a certificate from a licensed plumber, confirming that the premises meet the required standards. Alternatively, receipts or documentation showing the installation of compliant water-efficient fixtures (such as taps, showerheads, or toilets with WELS 3-star ratings or above) may also be acceptable.

Maintaining proper records helps protect you in the event of a dispute and ensures transparency with your tenants.

What if the property is not water efficient?

If the property is not water efficient, the property manager/owner must pay for a 'reasonable amount' of water consumption, and the tenant may be required to pay excess water charges. This only applies where the property is individually metered and the agreement states the tenant must pay for water.

The term ‘reasonable amount’ is not defined under the Residential Tenancies and Rooming Accommodation Act 2008 (the Act). The property manager/owner and tenant should agree on what is a reasonable amount and include the amount as a special term in the tenancy agreement.

Legislative Update: Timely Billing is Now Essential

Effective 30 September 2024, new laws were passed that affect how quickly a landlord or property manager must forward utility bills to tenants.

Under these reforms:

• Water usage bills must be given to tenants within 4 weeks of the landlord receiving them.

• If not provided within this timeframe, the tenant is not required to pay the bill.

This change ensures fairer billing practices and helps tenants manage their household budgets more effectively.

Landlord Obligations & Best Practices

To stay compliant and avoid disputes, landlords and property managers should:

• Confirm and document that the property is water efficient.

• Include the water charging condition clearly in the tenancy agreement.

• Keep records of water usage bills and forward them promptly (within 4 weeks of the landlord receiving them).

• Ensure the tenant receives a copy of the usage bill, clear billing breakdowns including meter readings and consumption dates.

Importantly, Urban Utilities will only issue water bills to the property owner, not directly to tenants, so landlords remain responsible for managing and distributing tenant charges.

Tip for Landlords

Consider having a qualified plumber assess your property for water efficiency upgrades. The upfront cost can pay off over time by allowing you to recover full water usage costs, and enhances the sustainability appeal of your rental property.

Need Help Managing Utility Compliance?

At Bayside Elite Property Management, we take the complexity out of water billing. Our expert team ensures your property meets legislative standards and handles tenant communication and invoicing with transparency and efficiency.

Get in touch today for tailored property management support, or request a free rental health check to see how your investment is performing.