Managing a rental property is far more than collecting rent. A clear understanding of who pays for what helps landlords and tenants avoid unnecessary disputes.
As a practical rule, landlords usually cover costs tied to ownership of the property, while tenants cover day-to-day consumption and personal services.
Owner costs (typically landlord responsibility)
- Council rates: an owner cost and generally not recoverable from tenants.
- Insurance premiums: while policy design differs by owner, building protection is essential risk management.
- Body corporate levies: relevant for apartments and unit titles.
- Fixed water charges: fixed components are generally owner-side; variable usage can differ by setup.
- Core utility setup obligations: ensure essential services are in place at tenancy start.
- Fibre installation approval: in most cases landlords should not unreasonably refuse requests.
Occupancy costs (typically tenant responsibility)
- Water usage and wastewater (where applicable): based on actual consumption and billing setup.
- Electricity and gas usage: tenant accounts in most standard leases.
- Internet and TV subscriptions: unless bundled by agreement.
Special scenarios to clarify in writing
- Water tank properties (initial fill vs refill responsibility)
- Shared meters or multi-unit utility allocation
- TV/fibre installation permissions and restoration expectations
- No unlawful interference with essential utility supply
Bottom line: put payment responsibilities in writing, align them with NZ tenancy law, and keep billing records tidy. Clear allocation upfront prevents conflict later.
