From 23 March 2025, new water efficiency standards will come into effect in NSW, adding further responsibilities for landlords. These changes will impact how landlords manage water efficiency in their rental properties and they must take action to remain compliant.
In a significant move to promote sustainability and reduce water consumption, the NSW government is set to implement new water efficiency standards for rental properties. Landlords must familiarise themselves with these changes to remain compliant and avoid potential financial implications.
New water efficiency requirements
From 23 March 2025, landlords in NSW will be required to meet new water efficiency standards to be able to pass water usage charges to tenants. The new measure requires that all toilets in rental properties are dual-flush models with at least a three-star rating under the Commonwealth Water Efficiency Labelling and Standards (WELS) scheme.
Exisiting responsibilities
Beyond upgrading toilets, landlords must must continue inspecting all taps and toilets for leaks at the beginning of each new tenancy and after any water efficiency-related repairs or upgrades. These inspections help ensure properties remain compliant and up to standard throughout each tenancy period. This requirement has applied to both new and existing tenancy agreements since 23 March 2020.
You can find the exhaustive list of all the requirements needed for landlords to pass water usage charges onto tenants at our legislation page here.
What this means for landlords
Landlords who meet both the new and existing water efficiency standards can pass water usage charges onto tenants. However, non-compliance could result in landlords being unable to recover these costs from tenants, potentially impacting profitability. Learn how Detector Inspector can help by contacting us below or visiting here.