Water leak increases tenants bill

[Basment Dweller]

I'm going to check with both the municipality and my insurance for cover, if not I'll have to cough up a couple grand. This is why owning property sucks, something always comes up that chews away your profits, after the bond is paid you make nothing.

[HR Solutions]

Leak is not the tenants fault but how does the landlord determine how much water was used by the leak and how much used by the tenant during that month?

In your first post you said it was ten time more ...... so you know.

when you get the utility bill and the bill is 10x it's normal amount?

[Houses4Rent]

I'm going to check with both the municipality and my insurance for cover, if not I'll have to cough up a couple grand. This is why owning property sucks, something always comes up that chews away your profits, after the bond is paid you make nothing.

Ah, you meant your building insurance might cover sudden accidental loss of water maybe. I am still keen to hear whether there is a specific municipal insurance as it was mentioned here?

Property investment is/should never be about short term profits, but long term asset building.

A landlord must always have a kitty for unforeseen expenses like vacancies, maintenance etc

[Basment Dweller]

100% correct, rental businesses need to have some floating cash, at least one months rent per unit because these things come up.

My insurance doesn't cover water loss and I've been trying to call the city of JHB for the past three days, they put you on hold for 15min then just cut you off.

[Dave A]

Ethekwini has a water loss insurance scheme going (which is probably what Anthony was referring too).
It would seem from the conversation that not all municipalities have this.

[msmoorad]

yes, Ethekwini have a water loss insurance scheme.
if u detect a leak, u go to the municipal offices & request a water loss insurance claims form.
then u get a registered plumber to do your job.
the plumber fills in the form & the homeowner submits it to the municipality.
the municipality will then send an inspector to have a look at the work done

it takes a few months but they will credit you on your water account.
(claims are limited to twice annually)

from experience, its better to have the water pipes from the meter surfaced.
it wont look as neat as having it running underground but u will be able to detect any future leaks almost immediately.

also, its better not to have too many elbows & joints in the new line as these are the spots where leaks mostly occur.

[Houses4Rent]

Ah, Cape Town has that as well, but its not an insurance as far as I know.
I tried that once and it failed and I eventually gave up. I just did not pay the water loss and if I ever sell this place in many years to come inflation will have reduced the outstanding amount to very little. Refund is not guaranteed.

I would never ever run any water pipes on surface as it gets too easily stolen and damaged. Once my copper surface pipes are stolen I replace them with copper and chase it into the wall/ground. Plastic pipes (especially exposed ones) are failing after a few years and one has to do it again.

I have seen many leaks as I manage 120 properties, but I have never seen an underground leak which made itself not evident very quickly.

[julies]

If the leak was caused due to a negligent tenant, its the tenants fault and he should pay, but good luck trying to prove it... I do believe if the leak is any where from the municipal meter to your main stopcock valve , you can get a reduction in the water bill, provided, once again, that the land lord can prove that the leak was not caused by an act of negligence.

[Phil Cooper]

Many good Insurance policies have a water leak extension under Buildings or Contents covers.