Question: Do tenants pay for hot water usage and similar charges within a group of units?
Answer: Hot Water charges in Strata complexes vary
Hot Water charges in Strata complexes vary. Please see the below summary of the different ways water is billed and charged.
Complexes with individual hot water systems
In complexes where units have their own hot water system, the water is simply calculated by SA Water through the meter. It is normal for Strata Corporations to have one water meter and the bills are either charged directly to the Corporation or to the owner, based either by unit entitlement, equally or some other manner in which the Corporation have previously agreed to.
In some cases owners pay then charge the water use onto the tenant, but this would be outlined in the lease and covered under the Residential Tenancies Act.
Complexes with shared hot water systems (bulk hot water systems)
Larger complexes tend to have bulk hot water systems where the system supplies the hot water to each individual unit. This set-up involves each unit having a meter to calculate the water / gas used for each unit. Usually, the company that is contracted to manage the bulk hot water system then reads the meters and bills the tenants directly for their water use. In some cases, the costs of the meter reading and service costs are covered by the Corporation as they know they are recovering the costs of the water used by tenants and it is on a user based system.
In other cases, I have many older properties who have small hot water systems connected to 2 – 3 units and Origin bill those tenants directly for the use but it is not a manager’s bulk hot water system as outlined above.
This post appears in Strata News #597.
Carrie McInerney
Horner Management
E: carrie@hornermanagement.com.au
P: 08 8234 5777
I live in a 7block flats with a coffee shop as well and the landlord makes us pay for water with all 7 flats paying same amount and the coffee shop paying the rest and there only one metre yes it’s on lease to pay but surely that’s not right when a coffee bisnes is using water and on same meter
Hi Mark
The following response has been provided by Carrie McInerney, Horner Management:
It is difficult to respond on what is “fair” without understanding the split. However, if the coffee shop is part of the Strata plan, and there is only one meter it is not possible to calculate the use of each unit without additional equipment being installed such as meter readers. How the water bills are split from one account is up to the Strata Corporation and needs to be voted on by the owners and is not something the tenants can vote on. As your question really relates to a rental issue you may need to contact the Property Manager, if you have one, or Consumer and Business Affairs for advice.
https://www.sa.gov.au/__data/assets/pdf_file/0003/11964/Charging_for_water_bulletin.pdf
This SA info page will give you some idea of where you stand. Unfortunately this is more of a tenancy issue than a strata issue.
I suggest you check your lease first and if there is nothing mentioned about paying for water consumption it appears you cannot be required to. If your lease specifies shared payment of water consumption on a one-third basis you’re stuck with it until the end of the lease – so make sure at least 30 days prior to the end of the lease you let the agent that you believe the terms of the lease need adjusting to be fairer, why and how.
If, however, the lease doesn’t specified how the payment for water is to be shared, it should not be automatically assumed as being equal, particularly if the number of people on each lease is different. In that case I believe you would be justified in asking for a fairer arrangement immediately, and perhaps seeking further advice from REISA.