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Change of lease

Setting up a new lease or changing an existing lease for a non-domestic property


When a property is leased, customers can choose to have the bills sent straight to the lessee so that payment is easier to manage and the lessee can use the bills for GST purposes. This page explains your billing options and how to set them up.
 

What to do when a lease agreement ends

The property owner should contact us when a lessee vacates the property so that we can organise a final reading and settle any final charges with them or with the lessee. If, at this time, details for a new lessee are not given (via a Change of Non-Domestic Lease – Property Owner form), the account will go back into the property owner’s name until another lessee is nominated.
 
The lessee, if their name appears anywhere on the bill, can also contact us to request a final reading and settle any final charges. However, any instruction to change the account set-up when a change of lease occurs must ultimately come from the property owner.
 
If we are not told about the change of lessee, the previous lessee will continue to receive bills for the property.
 
We encourage both parties to let each other know if they have contacted us.
 

What to do when a new lease agreement begins

When a new lease agreement begins, the property owner should choose one of the three billing options below and submit the appropriate forms to us for processing. Note: We no longer require copies of the formal lease documents.
 
We encourage property owners and lessees to work together to decide which option best suits both parties.
 
 
Option 1 – Bill in the lessee’s name (GST invoice)
  • All correspondence and bills are mailed to the lessee.
  • The property owner can choose to receive copies of the correspondence and bills.
  • As only the lessee’s name appears on the bill, the lessee can use the bills as GST invoices.
  • The property owner has full authority to manage the account while the lessee has authority to manage most features on the account.
  • Payment must be made by direct debit.
  • Although the lessee is responsible for the direct payments, responsibility for any outstanding debt in the event of non-payment ultimately lies with the property owner.
  • To set this up: 
    - The property owner or their agent will need to complete and sign a Change of Non-Domestic Lease form, selecting option 1 in the first section.
    - The lessee will need to complete and sign a Direct Debit Authority for Change of Non-Domestic Lease form
    - We require both of the above forms to be sent together for this request to be actioned.
        
Option 2 – Account in the property owner’s name with all bills sent care of the lessee
  • The account remains in the property owner’s name but is set up C/- (care of) the lessee with all correspondence and bills mailed to the lessee.
  • The property owner can choose to receive copies of the bills and correspondence.
  • As the bills are in both the property owner’s and lessee’s names, they can’t be used as GST invoices by the lessee.
  • The property owner has full authority to manage the account while the lessee has authority to manage most features on the account.
  • Payments can be made by direct debit or by any of our other payment options.
  • Although the lessee is responsible for the direct payments, responsibility for any outstanding debt in the event of non-payment ultimately lies with the property owner.
  • To set this up: 
    - The property owner or their agent will need to complete and sign a Change of Non-Domestic Lease form, selecting option 2 in the first section.
    - If the lessee chooses to pay by direct debit, they will need to complete and sign a Direct Debit Authority for Change of Non-Domestic Lease form
 
Option 3 – Bill in the property owner’s name only
  • Bills are mailed to the property owner who can either forward the bill to the lessee to pay, or pay the bill and seek reimbursement from the lessee.
  • The lessee will not receive the bill directly from us.
  • As the bills are in the property owner’s name only, they can’t be used as GST invoices by the lessee.
  • The property owner has sole authority to manage the account.
  • Responsibility for payment lies with the property owner.
  • If a lessee vacates the property and a new lessee is not immediately assigned to the account, this will be the default option; the bills will automatically go back into the property owner’s name until a new lessee is nominated.
  • To set this up:
    - The property owner should contact us using the details below to let us know they would like the bills sent in their name only. This can be done when contacting us about the previous lessee vacating the property or at a later date.
    - No forms are required for this option.
 

Time frame

We will change the account within 15 days of receiving the appropriate forms and processing the previous account’s final reading. We will notify the property owner and lessee (if applicable) once the changes have been made.
 

More information

Property owners always have access to information and authority to make changes to accounts associated with their properties. If the lessee’s name appears anywhere on the bill, the lessee can also access information and make some changes to the account.
 
If you have any further questions, please contact our credit team at cservices@water.co.nz or on 09 539 8585.