New Rental Laws : Utility and Service Charges

As of September 30th, 2024, new rental laws concerning water, utility, and service charges for tenants are now in effect in Queensland. These changes bring important updates for both landlords and tenants, clarifying responsibilities and setting clear guidelines on billing practices.

What’s New for Utility and Service Charges?

Under the updated legislation, when tenants are responsible for covering costs such as water usage or other utility services, landlords or property managers are required to provide a copy of the relevant service provider’s bill. This documentation must be shared with the tenant within a four-week period from when the landlord or property manager receives it. This measure not only ensures greater transparency but also encourages prompt communication around utility expenses.

Key Requirements for Landlords and Property Managers

The primary responsibilities for landlords and property managers under the new laws include:

• Timely Delivery of Bills: The bill for any water or service charges must be provided to tenants within a four-week window. If a tenant does not receive the bill within this timeframe, they are no longer obligated to pay for that particular service charge.
• Clarity in Billing: The bill provided to the tenant must come directly from the service provider (e.g., water or electricity companies). For example, water usage bills given to the landlord or property manager must display the actual amount of water used within the property.

Other Important Information:

• Property owners cannot make a profit from supplying services to tenants. They also cannot charge tenants for the cost of supplying or maintaining equipment, or for reading meters
• Tenants can only be charged for water consumption if the property is water efficient and individually metered. Water efficient products must have a Water Efficiency Labelling and Standards (WELS) rating of at least three stars. Landlords can provide proof of water efficiency to tenants.
• Property owners are responsible for paying all fixed charges, including sewerage charges.

This new approach aims to improve transparency, ensuring that tenants are fully aware of and have access to the same billing details that the property owners receive from service providers. This provides an opportunity for tenants to monitor their usage and confirm accuracy in charges, ultimately contributing to a more balanced rental experience.

Have Questions?

Navigating these new legislations can be complex. If you’re a landlord or tenant who would like further clarification on how these changes impact your rental agreement, please don’t hesitate to contact your property manager or reach out to us directly.

We’re here to help ensure everyone has the information they need to stay compliant and maintain positive relationships between landlords, tenants and property managers.