Updated October 2026
CM Law’s Ultimate List: Top 50 FAQs on Buying a Residential Investment Property #40. Utilities Accessibility
When purchasing a residential investment property in Australia, access to reliable water, energy and telecommunications is an important part of assessing its suitability for tenants. Investors often concentrate on location, purchase price and rental forecasts while overlooking the services that make a home practical to occupy.
In NSW, the questions are straightforward: what is connected, what works, what needs upgrading and who pays? A service running past the boundary is not the same as a functioning connection inside the property. Utility problems can create additional expenses, delay occupation and undermine an otherwise sensible investment.
1. Check water supply and sewerage
Confirm the water supplier, meter location and wastewater arrangements for the exact property. Sydney Water serves much of Greater Sydney, while other providers operate elsewhere in NSW. Ask about water pressure, leaks, shared pipes and any history of sewer blockages. A functioning tap at an inspection does not establish the condition of the entire system.
Sydney Water’s property documents distinguish its service location print from the sewer service diagram showing private wastewater pipes. Have these checked alongside the title and easements, particularly where pipes cross neighbouring land or proposed building work would be close to infrastructure.
For development or subdivision, ask whether a section 73 compliance certificate is required. Sydney Water may require connection works, protection of existing pipes and payment of fees before issuing it. An application fee does not include all construction costs. Obtain a written assessment before assuming existing services can accommodate additional dwellings.
2. Investigate rural water arrangements
A rural property may rely on rainwater tanks, bore water or an onsite wastewater system. Check storage capacity, pumps, maintenance records, relevant approvals and access for deliveries or servicing. Ask what happens during dry periods and power failures, and obtain specialist advice on the condition of the system.
NSW Health’s groundwater guidance recommends testing and appropriate treatment before bore water is used for drinking, cooking or personal hygiene. Clear-looking water is not proof that it is safe. Include treatment, maintenance and replacement costs when comparing a rural investment with a serviced suburban property.
3. Confirm electricity capacity and gas arrangements
Ausgrid, Endeavour Energy and Essential Energy are electricity distributors responsible for network infrastructure in their respective areas. They are different from the retailer that sells electricity and sends the bill. Identify the distributor and ask an electrician whether the existing installation suits the intended use.
Older wiring, inadequate switchboards or insufficient capacity can become expensive when adding air conditioning, electric hot water or an EV charger. NSW guidance on changing electricity supply explains when an accredited service provider is needed for connections, upgrades and separate supplies. Seek written quotes covering approvals, excavation, metering and reinstatement, with realistic completion dates.
Gas is not essential to every investment property. A properly equipped all-electric home can be suitable for tenants. If gas appliances are included, establish whether the supply is mains gas or bottled LPG and check the installation and maintenance arrangements. Compare operating costs without assuming that a gas connection automatically increases rent or resale value.
4. Verify internet availability at the exact address
Reliable internet matters to tenants who work, study or run their household online. Use the NBN address checker, including the unit number, then confirm connection status with a retail provider. Being ready to connect does not necessarily mean the service is activated or that no further installation work is needed.
Ask about the connection technology, available plans, expected speeds, installation timing and any charges. Check where equipment will be located and whether cabling needs landlord or strata approval. A nearby property’s connection is not proof of the service available to your lot. Avoid advertising a particular speed unless you have a reliable basis for that claim.
NSW Fair Trading explains that landlords do not ordinarily have to provide telephone or internet connections. Tenants generally arrange and pay for installation, although the landlord may contribute. New installation requires written permission; this is likely to be a minor change for which consent cannot unreasonably be refused. Record any agreed contribution clearly.
What current broadband figures tell investors
In its 11 August 2026 results announcement, NBN Co reported that more than 575,000 homes and businesses upgraded from copper to fibre during the year ending 30 June 2026. This is a national figure, not a measure of NSW rental-property coverage.
The ACCC’s 17 June 2026 report announcement reported average fixed-line NBN download performance of 99.4% of plan speed during weekday evening busy hours. That describes the monitored services; it does not guarantee performance at a particular address or establish a rental premium for connected properties.
5. Understand which utility charges tenants can pay
Under NSW electricity and gas rules, landlords pay installation and initial connection costs. Tenants generally pay ongoing electricity and mains-gas charges where the premises are separately metered. Without qualifying separate metering, those charges generally remain the landlord’s responsibility. Installing a private submeter does not automatically satisfy the legal definition.
Landlords pay water service and ordinary sewerage service charges. Water usage can be passed on only when the legal conditions are met, including separate metering or delivery by vehicle and the prescribed efficiency measures. Provide evidence of the charge, request payment within three months of the bill and allow at least 21 days to pay. Do not charge more than the supplier charged.
Since 23 March 2025, those efficiency measures include dual-flush toilets with at least a three-star WELS rating. Other tap, showerhead and leak requirements also apply. This affects the right to recover water usage; it is not a blanket statement that every older toilet is unlawful.
6. Examine embedded networks in apartments
Some buildings use privately operated networks for electricity, gas, hot water, internet or other services. Review the supplier contracts, tariffs, metering and practical ability to change providers. Also investigate shared equipment and who pays to repair or replace it.
From 1 April 2026, section 184 strata information certificates must include information about utilities supplied through exclusive or embedded networks. Use this alongside a strata records inspection. For residential tenancy agreements signed from 23 March 2020, embedded electricity or gas supply must also be identified in the agreement.
A real case: utility charges at an Earlwood duplex
In Terzic v Pettersen (2025), a tenant rented the upstairs portion of an Earlwood duplex and paid $250 a month for utility outgoings. The premises were not properly separately metered for water, electricity and gas. A later electricity submeter did not satisfy the statutory requirements, and the landlords did not establish that an embedded-network exception applied.
NCAT found that the payment arrangement could not override the landlords’ legal obligations. It ordered a refund of $4,771, rather than repayment of every amount claimed. The lesson is to investigate metering and billing before relying on tenants to cover utilities. A lease clause or informal division of a combined bill does not necessarily make charges recoverable.
7. Budget for connections and protect your purchase
Separate ordinary account activation from major connection works. Budget for contractor charges, network upgrades, approvals and lost rent during delays. For illustration, six weeks without an expected $650 weekly rent means $3,900 in forgone gross income, before finance and holding costs. This is a calculation example, not an industry average.
Before exchange, obtain written service confirmations, inspect relevant equipment and ask your lawyer to review easements, shared services and any promises about future connections. If work remains outstanding, establish who must complete it, who pays and how the sale contract deals with delay.
CM Lawyers’ conveyancing team can review the contract and property documents and identify issues requiring advice from utility providers, electricians, plumbers or strata specialists. Clarifying these matters early helps you assess the property’s actual rental costs and readiness for tenants.
Key resources
- Sydney Water — Property certificates and diagrams and section 73 certificates: existing services and development requirements.
- NSW Health — Groundwater: testing, treatment and safe use of bore water.
- NSW Government — Installing or altering electricity supply: accredited providers, approvals and connection works.
- NBN — Check an address and 2025–26 results announcement: service availability and national fibre-upgrade figures.
- ACCC — Broadband performance, 17 June 2026: the source of the reported average download-speed figure.
- NSW Fair Trading — Electricity and gas, water charges and telephone and internet: landlord and tenant responsibilities.
- NSW Fair Trading — Water-efficiency requirements from March 2025: the dual-flush requirement for recovering usage charges.
- NSW Government — Strata-law changes: embedded-network information on section 184 certificates from April 2026.
- Terzic v Pettersen (2025): official NCAT decision about utility charges and separate metering.
