Hot Water Systems — Who's Responsible?

In most townhouse schemes, each lot has its own hot water system — and the owner looks after it. That's a big difference from some apartment buildings where there's a shared centralised system. The rules follow the same principle as plumbing: if the hot water system serves only one lot, it's the lot owner's; if it serves more than one lot, it's common property.

What we're talking about

Hot water systems in townhouse schemes come in several types:

• Electric storage (the older silver cylinder bolted to a wall)
• Gas storage
• Instant (continuous flow) gas systems
• Heat pumps (an outdoor unit, like a small air conditioner)
• Solar hot water with roof panels and a ground tank

Typical position

Grey areas and common disputes

Replacing the system

When a hot water system fails (and they all do — typical life is 8-15 years), the lot owner usually arranges and pays for replacement. A few things to be aware of:

• If the system is mounted externally on a common-property wall, fixing the bracket back to the wall affects common property — strictly, this needs OC approval.
• If you're upgrading from electric to a heat pump or gas, the new equipment may be bigger, noisier, or in a different location — those changes do need OC approval and usually a common property rights by-law.
• If the system was upgraded by a previous owner without a by-law, you may have inherited an undocumented installation. That's typically not your fault, but you may want to formalise it before the next replacement.

Heat pumps and noise

Heat pump hot water systems have a small compressor that hums when running. In a small townhouse scheme with units close together, that's something to think about — particularly if the unit is going outside a neighbour's bedroom. Council planning rules and NSW noise guidelines apply. A by-law is the right way to deal with location, hours of operation, and any noise mitigation.

Solar hot water

Solar systems usually have panels on the roof (common property) and a tank either at ground level or in the roof space. The system as a whole usually serves one lot, so it's owner-owned. But because the panels sit on common property, installing a new system or replacing one needs OC approval and a by-law — the same as solar PV panels.

Roof or wall leaks caused by a hot water system

If the unit bursts and damages common property (e.g. water runs down the wall), the OC's insurance generally covers the building damage — but the OC's insurer may seek to recover from the lot owner if the unit was old, neglected, or known to be failing. Annual inspections and timely replacement protect everyone.