Monday, September 9, 2013

What utilities are you responsible for?


As a landlord you know you know you have to pay taxes, the mortgage, maintenance costs, fees to any of your team members that you may use on a regular basis (like a property manager for example)  But what about utilities, can't you just make your tenant pay for everything?

Well in a way they are through the rent that they pay, but this comes directly from the Consumer Affairs Victoria website.  Which spells out exactly what tenants and Landlords are responsible for

Water
If the property has its own meter, the tenant must:
  • pay for water consumption, and
  • (in the Melbourne metropolitan area) sewage disposal, unless the landlord has agreed to pay these charges.
The landlord must pay all other charges related to water supply, although different rules may apply when a tank is the main source.
Other utilities
  • The landlord must pay all installation and initial connection costs for electricity, gas and oil supply. If there is a separate meter, the tenant must pay for all other charges, unless otherwise agreed. If there is no separate meter, the landlord must pay. 
  • Where bottled gas is provided, the landlord pays for the supply or hire of bottles and the tenant pays for the gas. A landlord must reimburse the tenant for the costs of any utilities for which the landlord is liable. 
  • The landlord must reimburse the tenant for any rates or taxes paid to a public authority that are not part of consumption charges for the service. However, the tenant may be responsible for these costs if their lease is for a fixed period of more than one year and the lease agreement states this. 
  • Director of Housing tenants may be charged separately for expenses such as heating and laundry.
  • Tenants are responsible for phone line and internet connections, unless the lease states that the landlord will provide these services. 
  • If an external antenna is part of the property and cannot receive digital signals, the landlord must upgrade or replace it if the: 
    • original antenna could receive analog signals when the tenant moved in, and 
    • lease is covered by the Residential Tenancies Act 1997. 
For information about who is responsible for smart meters, visit the Department of Primary Industries website

Have you been in a situation where you didn't know who was responsible for what? How did you handle it? If you use a Property Manager, they will ensure that you and your tenant know who is responsible!


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