NSW Seperate water connection for grannyflat?

I was enquiring my PM to see if they have recovered water usage charges from the tenant. She came back with the following comment. I have main house and granny flat on a single title.

""Unless both properties are separately metered through Sydney Water won’t be able to charge tenants usage""

How are you guys dealing with this kind of situation in Sydney if you have a granny flat.

Have you organised new Sydney water meter, if yes how much does it cost.

 

Has been covered off in other threads.

Water usage and dual occ granny flat

 

Thanks Scott. I think it's expensive solution.

@property_geek do you mind sharing how much it's costed roughly for plumbing.

I am thinking of an alternate solution, I.e tell tenant that don't pay water usage bills and pay slightly increased rent to cover water usage charges? Is it acceptable and any other ideas?

 

All of the landlords I deal with have now just included the water in the rent.

Some have opted to increase the rent however most have held off on an increase due to COVID-19 but will increase in the future

 

And if you remeter and replumb for a new meter it may not be acceptable either. You rented to them without a charge for water and cant then just add it. Its something to do between tenants but often isnt viable. It should have been considered pre-construction. Depends on many factors as the footpath to the GF needs to be considered.

You cant charge for water, power, internet, rates or land tax in other ways. It would end up in a tribunal. All you can do is consider if the rent needs adjusting and in this climate that may be hard in many areas.

 

depends on how far is the granny flat from main meter.
see images:

 

Thanks property geek for sharing details.

I might adjust the rent instead of investing $2K. Will discuss with PM.

 

I think you should go ahead and have the meters installed- some of these meter installs are incredibly difficult and expensive but $2k is pretty reasonable.

I've personally found in my market that tenants wont pay a higher rent because water is included.

If you're expecting a combined bill of around $300-$500 per quarter, you will be about to recoup the installation cost in 1-2 years.

The sooner you do it, the faster you get it back!

 

Thanks Tomas.

In NSW, @Hayley Cannon approach might work.

 

@property_geek @Hayley Cannon or anyone else, after installing a separate Sydney water meter, will I get two separate bills with the two sets of Water Service and wastewater service charges? If it's Yes, is it worth of separate Sydney water meter for GF? Pls see the screenshot below.

I have decided to install a separate meter instead of advertising higher rent to include water charges.

 

I would purchase a water meter with the same accuracy as used by the local residential water supplier.
Id get a plumber to install in pipe connection to granny flat.
Read it at start of tenancy and notify tenant so their is a record.
Every 3 months bill them for their water usage at whatever water rate you pay ( ie so u are not making a profit or loss ) just recovery.
I would pay all the connection fee on the original meter.
Add appropriate special terms to agreement about the meter and payment needed.
Make sure they understand before they sign agreement.

 

This wouldn't be enough in NSW. In order to charge usage the property has to be separately metered, and separately billed.

Water, electricity and gas in rental properties
A rental property is separately metered if the meter:

• measures the amount of electricity, gas, oil or water supplied or used only at the property
• allows a separate bill to be issued by the supplier

 

You will receive 1 bill with 2 meters listed and meter reads on the back of the bill. You will not have to pay 2 lots of rates etc.

 

It raises a couple of contestable questions.

• As a GF is not a separate property, has the owner complied by having a single meter to the property with two check meters (one to each residence)?
• Does the owner then become the supplier if there are two submeters?

Why 2 submeters? To measure the water used at each individual property.

 

no because it will not be billed separately

 

The owner can issue an invoice using the authority invoice as backup. The owner becomes the defacto supplier.

 

I dont think that would fly. I would want some pretty clear legal advice before trying something like that and tbh, it probably isn't worth the hassle to recover the usage costs which in reality are a tiny portion of the water bill anyway.

 

Hi there
After a recent NCAT experience, for a house with a granny flat here in Sydney, the tribunal clearly said "Unless both properties are separately metered through Sydney Water and you receive separate bills 1. for the main house and 2. for the granny flat, you won’t be able to split or charge the tenants for water usage". I hope this NCAT experience helps to clarify.
Luis