Who Pays Water Rates Tenant or Landlord in Auckland, NZ?

For both landlords and tenants, water charges are one of the most common areas of confusion in a tenancy. Questions about who pays water rates tenant or landlord are raised regularly in Auckland, where Watercare supplies water and wastewater services under a volumetric charging system. With costs split between fixed charges and actual consumption, the answer depends on the law, local authority rules, and the tenancy agreement itself.

This article explains how water charges are handled under New Zealand law, how they apply specifically in Auckland, and what landlords and tenants can do to stay compliant and avoid disputes.

Key Takeaways

• In Auckland, tenants pay for water use only if the property has its own meter and the bill shows their actual consumption.

• Landlords must pay fixed charges, council rates, and promptly repair leaks. If tenants cause the damage, they may be liable for excess water use.

• Watercare bills divide charges into fixed supply fees and volumetric usage.

• Tenancy agreements should clearly state water payment responsibilities.

• Disputes often arise over fixed charges or shared meters. The Tenancy Tribunal consistently applies the Residential Tenancies Act when deciding these cases.

  
  

The national legal position: Residential tenancies act

The starting point is the Residential Tenancies Act 1986, which governs rental agreements across New Zealand. Section 39 of the Act sets out how “outgoings” like water charges should be allocated.

• Landlords must pay charges that are incurred regardless of occupancy, such as local council rates, fixed supply fees, and insurance.

• Tenants are required to pay charges that can be exclusively attributed to their occupation. This includes water consumption if it can be separately measured.

In practice, this means that tenants in Auckland are responsible for the cost of water they use, while landlords remain responsible for fixed service charges and council rates. These rules apply nationwide, including Auckland. There are no separate local tenancy laws, but Watercare’s billing structure determines how costs are split.

For more details on landlord responsibilities, see our Property Management Library.

Auckland context: How watercare bills work

In Auckland, Watercare Services Limited manages the water supply and wastewater. Their billing system separates fixed charges from volumetric usage:

• Fixed charges cover the cost of water connections and infrastructure. These are paid by the property owner (the landlord).

• Volumetric charges reflect the actual water consumed, and these can be passed on to the tenant if the property has its own water meter.

If the property is a multi-unit building without individual meters, the landlord must pay the water account in full, as tenant usage cannot be separated.

This arrangement follows both national law and local practice, ensuring fairness while making sure charges are allocated correctly.

Watercare holds the property owner responsible for payment of the entire account. The landlord may recover only the tenant’s water-use portion if a separate meter exists.

Who pays water rates, the tenant or the landlord in Auckland?

To answer directly:

• Tenant responsibility: Paying for water consumption when there is a separate water meter and the bill shows actual use.

• Landlord responsibility: Paying fixed supply charges, council rates, and all water costs when usage cannot be measured for a single tenancy. The landlord must also repair plumbing issues that cause excessive use.

This division reflects the principle in the Residential Tenancies Act that tenants only pay for what they use, while landlords handle the unavoidable base costs of property ownership.

These principles come from section 39 of the Residential Tenancies Act and Tenancy Tribunal rulings interpreting that section.

Practical tips for tenants

Tenants can protect themselves by:

• Checking the tenancy agreement: it should state who pays water charges and under what conditions.

• Recording the meter reading at the start of the tenancy, so future bills can be fairly compared.

• Requesting a copy of the bill from the landlord when asked to reimburse water usage.

• Reporting leaks quickly, as landlords are responsible for repairs and may be liable for excess usage caused by faults.

If the property does not have a separate meter, tenants cannot be charged for water use under the Act.

Practical tips for landlords

Landlords can avoid disputes by:

• Ensuring the property has a separate meter if they want tenants to pay usage. Without this, tenants cannot be charged for water consumption.

• Paying fixed charges directly, as required by law.

• Including clear wording in the tenancy agreement about water charges and how reimbursements are handled. Include a copy of the relevant Watercare bill when asking tenants to reimburse usage.

• Keeping transparent records and providing tenants with copies of water invoices.

Failure to comply can result in disputes being escalated to the Tenancy Tribunal, where rulings typically favour the interpretation of the Residential Tenancies Act.

Common disputes in Auckland tenancies

Disputes often occur when:

• Landlords try to recover fixed charges from tenants, which is not permitted.

• Tenants are asked to pay water bills without proof of meter readings.

• Shared meters lead to disagreements about usage.

The Tenancy Tribunal has repeatedly confirmed that tenants cannot be held responsible for fixed charges or for water that cannot be individually measured. These rulings underline the importance of compliance for Auckland landlords.

Why clarity matters in Auckland property management

With Auckland’s rental market under constant pressure, clear agreements about outgoings like water rates are essential. Misunderstandings can sour landlord-tenant relationships and if taken to the Tribunal, can lead to refund orders or exemplary damages for non-compliance.

Landlords who attempt to self-manage without understanding compliance risk financial penalties and disputes. Our article on DIY Property Management NZ – Risks and Fines explains why professional support can protect landlords and ensure tenants are treated fairly.

Professional property management helps ensure agreements are compliant with the Residential Tenancies Act and consistent with Watercare’s billing structure. It also provides landlords with peace of mind that responsibilities are handled correctly.

Clear answer on who pays water rates in Auckland

In Auckland, tenants pay for water they use, landlords pay for fixed charges and rates. The rule of thumb is simple: usage falls to the tenant, unavoidable costs fall to the landlord. Knowing the difference protects both parties and keeps tenancies running smoothly.

If you want guidance and expert support managing properties in Auckland, book a consultation today with Staircase.