Including the cost of water usage as a portion of the rent is something that’s not common, but is possible and something that can be seen by the prospective tenant as a positive when renting a home.
For the owner, including the cost of water usage allows for a higher rent yield to be achieved, together with the costs for the water being used as a tax deduction. Achieving a higher rent leads to a higher return on paper. An investor looking to purchase more properties can take advantage of this in terms of borrowing ability with the bank.
What other reasons are there for you to include the water usage as a portion of the rent? No time wasted on chasing tenants for payment on a monthly basis. Although, if you have a property manager looking after your investment property, this is something they generally organise on your behalf.
When looking to include the water as a portion of the rent, be sure to consult with your Property Manager regarding the actual amount by which you need to increase your rent. WeÂ can also insert clauses within the tenancy to protect you from excessive water use.