Indah Water Bill: Landlord or Tenant Pays?

Who pays the Indah Water bill in a Malaysian rental?

The Indah Water Konsortium (IWK) sewerage account is registered to the property owner, so in most Malaysian rentals the landlord receives and pays the IWK bill. Your tenancy agreement can legally require the tenant to reimburse it — but unless that clause exists, the default liability sits with the landlord.

Unlike the TNB electricity account or the state water account, which tenants routinely transfer into their own names at move-in, IWK does not operate a standard residential change-of-account process for tenancies. The bill follows the property, not the occupant.

How IWK billing works and why it matters for rentals

IWK provides sewerage services to connected properties across Peninsular Malaysia and charges the registered property owner. The billing cycle runs every 6 months (bi-annually) for residential premises. From 1 January 2026 the standard domestic rate is RM15/month, making a typical 6-month bill RM90. In 2024–2025 the rate was RM12/month (RM72 per cycle); the pre-2024 figure of RM8/month cited in many older guides is outdated and should not be used in tenancy agreements or disputes.

Source: IWK Official; dim03 §4.1, §4.2; Last verified: 26 June 2026.

Because the account does not transfer to the tenant, the landlord remains the account holder throughout the tenancy.

This creates a practical question: who is responsible for payment inside the rental relationship?

Why the landlord stays liable for IWK even with a tenant in place

Under the Water Services Industry Act 2006, s.67(1), the owner, management corporation, or occupier of the premises is liable to pay sewerage charges — meaning the property owner sits squarely in the liability chain regardless of who is living there. This is a fundamentally different outcome from electricity: for TNB, a registered tenant becomes the account holder and primary payer under the Electricity Supply Act 1990 framework. For IWK sewerage, the law keeps the owner in scope throughout. A tenancy agreement clause requiring reimbursement, plus regular payment monitoring, is the landlord's practical protection against accumulating unpaid sewerage arrears.

Key point: "Water bill" and "sewerage bill" are separate things. Paying Air Selangor (or your state water provider) does not cover IWK. If your TA says "tenant pays water bill", check whether it names IWK specifically — if it does not, the landlord cannot deduct unpaid IWK from the security deposit without a contractual basis.

Vacant properties: does IWK still charge?

For vacant properties, IWK charges a minimum of 50% of the prevailing rate — but only if the landlord sends written notice to IWK of the vacancy. Without that notice, the full rate applies even to an empty property.

At the 2026 rate, the vacant minimum is RM7.50/month (RM45 per 6-month cycle). If the property is between tenants and the landlord has not notified IWK in writing, the full RM90 per cycle applies. This is a common oversight for landlords with multiple properties.

Source: IWK Fifth Schedule Regulations 2022; dim03 §4.4; Last verified: 26 June 2026.

What to do at move-in and move-out

At move-in, ask the landlord for the most recent IWK bill and note the account number. This confirms the property is connected and billing is current. Outstanding IWK arrears follow the property and can surface as a dispute when the tenancy ends.

At move-out, if the TA requires you to reimburse IWK, keep receipts or bank transfer records for each four-monthly payment. If the landlord deducts IWK charges from your deposit without a TA clause, that deduction is not supported by the contract — dispute it in writing first, then through the Magistrates' Court small-claims procedure for amounts up to RM5,000. For a broader view of managing utility bills as a tenant in Malaysia, including electricity and water, see the full guide.

For landlords, the safest approach is a clear TA clause that names IWK specifically and states whether the tenant reimburses the landlord directly or pays a pro-rated addition to monthly rent.

SPEEDHOME tenancy agreements used on the platform include a utilities clause that landlords can configure to include or exclude IWK reimbursement — reducing ambiguity at move-out. Browse rental homes in Malaysia where the tenancy terms are clear from the start.

FAQ

Does the IWK account transfer to the tenant's name when they move in?

No. IWK does not offer a standard residential account-transfer process the way TNB does. The sewerage account stays registered to the property owner for the entire tenancy. The tenant can only pay IWK indirectly — by reimbursing the landlord — if the tenancy agreement requires it.

What if the tenancy agreement says "tenant pays all utility bills" — does that include IWK?

Only if IWK is named or "sewerage" is included. "Utility bills" in a Malaysian tenancy agreement typically means TNB (electricity) and the state water provider. IWK is a separate sewerage charge. Without explicit mention, a landlord claiming IWK is covered by a general "utilities" clause may not succeed in a deposit deduction dispute.

Can a landlord deduct unpaid IWK from the security deposit?

Yes, but only if the tenancy agreement contains a clause requiring the tenant to pay or reimburse IWK. Without that clause, the landlord has no contractual basis for the deduction. If deducted without basis, the tenant can dispute it through the Magistrates' Court small-claims procedure (claims up to RM5,000, no lawyer required).

Who is responsible for IWK arrears that built up before the tenancy started?

The landlord. Pre-existing IWK arrears belong to the registered account holder. A tenant is not liable for charges incurred before their tenancy began, regardless of what the TA says about utilities going forward.

How much is the IWK bill per month?

From 1 January 2026 the standard domestic rate is RM15/month. But IWK bills every 6 months, so the bill that arrives is RM90 (6 × RM15). In 2024–2025 it was RM12/month (RM72 per cycle). The RM8/month figure still quoted on many property sites refers to the pre-2024 rate and is no longer correct. Low-cost premises pay RM4.09/month; village/estate dwellings pay RM5.12/month. Source: IWK Official; dim03 §4.1; Last verified: 26 June 2026.

Does a landlord still get an IWK bill when the property is vacant?

Yes — unless the landlord sends written notice to IWK of the vacancy. With written notice, the charge drops to 50% of the prevailing rate (RM7.50/month or RM45 per 6-month cycle from 2026). Without written notice, the full RM90 per cycle applies even to an empty property. Source: IWK Fifth Schedule Regulations 2022; dim03 §4.4; Last verified: 26 June 2026.

What happens to the IWK account if the landlord sells the property during the tenancy?

The IWK account transfers to the new owner, not to the tenant. If the property is sold while you are renting, the new owner becomes the registered account holder. Your tenancy agreement obligations remain unchanged; the IWK liability question is between the two owners.

If I sell my property, am I still liable for IWK charges after the sale if I forget to notify IWK?

Yes. IWK's guidance is that the seller must notify IWK of the change of ownership, and the seller stays liable for sewerage charges on the account until that notification happens — a completed sale alone does not close out your IWK liability. Under the Water Services Industry Act 2006, a seller remains liable for amounts that became payable before the transfer, and IWK can also pursue the purchaser for those amounts — IWK's own FAQ states it does not apportion outstanding balances between the old and new owner. In practice this means an outgoing landlord should notify IWK of the sale in writing (IWK asks for the relevant Sale and Purchase Agreement pages showing the parties, address and dates) and settle the account at completion, rather than assuming the transaction itself ends the liability.