How billing tenants for water usage works in NSW

One of the most common questions new landlords ask is how to handle water utilities. Unlike electricity or gas, water is managed a little differently in NSW.

Here is everything you need to know to handle water bills smoothly, legally, and easily!

The water account stays in your name

Because water is an essential service, it is always connected to the property. You do not need to contact Sydney Water (or your local water authority) to transfer the account into the tenant’s name. As the property owner, you will continue to receive the water bills directly.

What you pay vs. what the tenant pays

Water bills are split into two main parts: fixed charges and usage charges.

• The Landlord pays: All fixed water supply and sewerage service charges.
• The Tenant pays: The actual "water usage" charges—but only if your property meets three specific conditions:

1. 1. The property is separately metered.
   2. The property meets NSW water efficiency measures (this includes having compliant taps, showerheads, and dual-flush toilets with a minimum 3-star WELS rating).
   3. You do not charge the tenant more than the exact usage amount billed by the water supplier.

The easy way to bill your tenants

You don't need to chase up bank transfers or write manual receipts. You can issue water usage bills directly to your renters through your Landlord Account.

This feature is fully dual-sided to save you time:

• For you: It automatically logs the original water bill as an expense for your financial reporting.
• For the tenant: It instantly creates a streamlined, payable bill for them to settle.

Important rule: When issuing the bill through your account, make sure to upload a copy of the original water bill for the tenant to see, and ensure they are given the legally required 21 days to pay. Also, keep in mind that water usage should be paid as a separate transaction from their regular rent.

Quick tips for a smooth tenancy

• Check the meter on day one: Water billing periods rarely line up perfectly with lease start dates. Always record the exact water meter reading on your initial Condition Report so the tenant is only paying for the water they actually use from the day they move in.
• Don't wait too long: In NSW, you have up to 3 months from the date the water bill is issued to request payment from your tenant.
• Tank water: If your property relies on a water tank, you must ensure there is water in the tank at the start of the tenancy. If the property meets water efficiency measures, the tenant is responsible for refilling it during their lease.

** *Need help logging your first water bill? Reach out to our support team or check out our step-by-step guide on creating a tenant invoice!

Updated on: 27/02/2026