Paying Water Rates in Queenstown: Tenant or Landlord Responsibility?

In Queenstown rentals, water and wastewater charges can be confusing: sometimes tenants pay, other times landlords do. Knowing who pays water rates, the tenant or landlord under New Zealand law helps avoid disputes, unpaid bills, and ensures smooth tenancy agreements. This guide explains what the law says, when tenants may be liable, what landlords must cover, and how to manage water supply and rates efficiently.

Key Takeaways

• Landlords must always ensure a sufficient water supply in rentals (either piped or stored).

• Fixed water and wastewater fees are typically paid by landlords provided these fixed charges are not conditional on occupancy.

• Usage-based charges upon occupancy are the tenant’s responsibilityIf (1) the premises are metered and (2) the consumption can be exclusively attributed to that tenancy, and (3) the tenancy agreement provides for this.

• Water accounts are under the landlord’s name, with tenants paying reimbursement with every payment.

• Unpaid water charges can lead to conflicts and remedy notices.

• Clear tenancy agreements and transparent billing must be practiced.

General guidelines on water rates & charges 

In Queenstown rentals, water rates depend on supply type, tenancy agreements, and whether charges are fixed or usage-based.

Water supply

The water supply of over 17,000 properties from about 12 treatment plants is the responsibility of the Queenstown Lakes District Council. They are required to bring safe and potable water to houses and businesses in the area. From there on, the landlords take the next level of responsibility, ensuring that enough water is supplied at rental properties, may it be piped or collected and stored.

Landlords are expected to keep plumbing and water systems in good order, which is why regular routine inspections in Queenstown rentals are essential. 

Wastewater charges

Water suppliers typically charge for incoming and outgoing freshwater. If the supplier bills an amount:

• Regardless of occupancy - Landlord pays.

• For when the property is occupied - Tenant pays.

This distinction often raises the question: who pays water rates tenant or landlord in Queenstown? The answer depends on whether charges are fixed or usage-based.

Metered water charges

The Residential Tenancies Act 1986, Tenancy Services, and Residential Tenancies Authority state that it is now the tenant’s responsibility to pay for water charges during his occupancy if:

• The rental property is individually metered,

• The rental property is water efficient, and

• The tenancy agreement says so.

How to pay

The water account is typically under the landlord’s name. If he permits, a copy of the account will also be sent to the tenant. Otherwise, he will have to send the copy of the bill regularly for the tenant to know what part he will be shouldering. After the landlord pays the whole water account, the tenant is then expected to reimburse him.

On unpaid water charges

• If landlord does not pay: He is responsible for reconnecting water supply to the rental and explaining the matter at hand to his tenants.

• If tenant does not pay: This is a breach of the tenancy agreement. The landlord can get a “notice to remedy” for payment, and if matters escalate, an appointment with the Tenancy Tribunal.

Unresolved water bills often surface at move-out, alongside cleaning obligations, making end of tenancy cleaning in Queenstown a key part of closing the tenancy properly.

What tenants & landlords should do ahead

• Mention in the tenancy agreement who pays for what, including fixed and usage-based charges,  and for how long (if applicable).

• Copies of the water bills must always be available to the tenant if he is responsible for some part, so the tenant can see what he is being rightfully charged.

• Tenants should check whether fixed or hidden charges are being unlawfully passed on to them.  

By clarifying who pays water rates tenant or landlord in Queenstown, most disputes can be prevented.

For smooth, efficient transactions

Water rates in Queenstown and NZ in general aren’t one-size-fits-all: fixed charges are generally the landlord’s duty, while usage charges may be passed on to tenants, as  recommended by clear accordance with the law and any internal agreements made. Clear discussions up front, timely payment of water charges, smoothly running water supply, and transparency in billing avoid most problems.

Landlords who struggle with billing disputes or tenant arrears can benefit from Staircase’s Landlord Rescue Package for professional support. For expert help managing rentals and tenancy agreements in Queenstown, visit Staircase Property Management.

Frequently asked questions

Can a landlord force a tenant to pay fixed wastewater charges?

No. Fixed charges that are independent of occupancy, such as wastewater fees, are usually paid by the landlord. Tenants only pay usage or volumetric charges if those are set up legally in the tenancy agreement.   

Can tenants see the water bill?

Yes. If tenants are going to reimburse their landlord for usage, they are entitled to see copies of the bill to prepare and verify amounts.  

What if the landlord sends the bill in the tenant’s name?

By law, water and wastewater accounts are named under and addressed to the owner or landlord. The owner can arrange for tenants to pay usage, but the legal account shall remain under him.  

How does this apply when the property is vacant?

Fixed water charges and continuing usage-based must still be shouldered by the landlord even if no tenant is living there, since the supply or availability is maintained.