Rental owner takes case against property manager after assumption leads to $14k water bill

A leaking water main resulted in a big shock for a homeowner - a $14,000 water bill. Photo / NZME

A landlord was assured by her property manager a rapidly leaking water main under a rental she owned had been fixed by the council.

However, the property manager only assumed the water main had been repaired because she saw a council water truck outside the house, leading to a $14,000 water bill for the owner.

Now the case has been heard in the Disputes Tribunal and a recently released decision found the homeowner broadly won her case against the property manager, claiming the assumption cost her thousands.

The decision, which by law cannot identify the parties or the location of the dispute, says in July 2022 the property manager identified a leaking shower and taps in the home.

This was fixed by a plumber and paid for by the homeowner. But another oddly high water bill followed the next month, and the plumber was sent back.

The plumber conducted a water main test and found it was leaking underground - a difficult and potentially costly fix.

By September, the cost of the mains repair was quoted at $6600 by the property manager, but the homeowner asked for another quote.

It was at this point while the property manager was undertaking a routine inspection she noticed council water company trucks outside the property.

Assuming the fault had been fixed, she messaged the homeowner to say the water company had fixed the main, and that the tenants reported no further leaks.

The next water bill in October was high, while the November bill was normal due to an estimation rather than a direct meter check. By December, the bill was again significant.

The property manager submitted a fault report to the water company, who discovered an “extremely high reading” on the water meter, resulting in water charges of $14,192.

The homeowner claimed that the property manager had given her incorrect advice that the leaks were fixed.

She claimed $4985 from the property manager, for water charges, plumbing work, compensation for time spent on the issue and overdraft interest.

Luckily, most of the $14,000 bill was paid via a rebate from the water company but the homeowner claimed $3290 was still owed.

Ultimately, the tribunal found the property manager made an “unwarranted assumption” that the main had been fixed after seeing the council water trucks.

“She did this even though [the homeowner] had been advised by the plumber they engaged privately that there was a mains leak and a quotation would need to be obtained for repair,” the decision said.

“That plumber would not have advised that a quotation was needed if it was an issue that [the council water company] was liable to address.”

The property management company was ordered to pay $2472, which the tribunal calculated as the sum left outstanding on the water bills, which can be attributed to the manager.

The tribunal declined the woman’s claim for $500 compensation for time spent, saying it was not “sufficiently evidenced”.

Ethan Griffiths covers crime and justice stories nationwide for Open Justice. He joined NZME in 2020, previously working as a regional reporter in Whanganui and South Taranaki.