Utilities in Ontario Rentals: Who Pays and What Landlords Can Do
Utilities cause more landlord-tenant disputes than most people expect. Who pays depends on the lease, landlords can never cut off vital services, and unpaid utility bills aren’t rent. Here is how it all works.
Key points
- The lease sets who pays for electricity, heat and water. There’s no default.
- Heat, water, electricity, gas and fuel are vital services. A landlord can’t withhold them, even when the tenant owes money.
- Unpaid utilities a tenant owes you aren’t rent. Claim them on an L2, not an N4.
- Moving an existing tenant to a suite meter requires their written consent and a rent reduction.
Utilities are a common source of disputes: bills in the wrong name, shared meters, and tenants who stop paying. Getting the setup right at the start prevents most of them.
The lease decides
The Ontario Standard Lease has a section where you and the tenant agree who is responsible for electricity, heat and water. Fill it in clearly. If utilities are included in the rent, you pay them. If the tenant is responsible, either put the account in their name or say exactly how they will reimburse you.
Vital services
Under the Residential Tenancies Act, vital services are hot or cold water, fuel, electricity, gas, and heat during the heating season. A landlord can’t withhold or deliberately interfere with a vital service they are required to supply, even if the tenant is behind on rent. If you fail to pay a utility bill and the service is cut off, you are treated as having withheld it. This can lead to a tenant application and fines. See landlord fines.
Tenant not paying their share of utilities? Book a free 20-minute call.
Book a free 20-minute call →When a tenant doesn’t pay
If the tenant was required to pay utilities under the lease and didn’t, you can apply to the LTB for your reasonable out-of-pocket costs. For a current tenant, use an L2. For a former tenant, use an L10 within one year after they moved out. List each bill and give copies of the bills and the lease to the tenant and the Board before the hearing. Don’t put utility amounts on an N4. The N4 is for rent only. See the L10 application.
Suite meters
You can install a suite meter, but you can’t shift electricity costs onto an existing tenant without their written consent on the approved form. You also have to give them the required information before asking, reduce their rent, and give proper notice. Electrically heated units have extra conditions. New tenants can agree to a suite-metered unit in the lease.
Practical tips
- Put utility accounts in the tenant’s name when the tenant is responsible.
- For shared meters, write down exactly how costs are split.
- Keep copies of every bill you pass on.
- If electricity is included, note the new seasonal air conditioner rules. See portable air conditioners.
Frequently asked questions
Who pays utilities in an Ontario rental?
Whoever the lease says. The Standard Lease has a section for electricity, heat and water.
Can I shut off utilities if the tenant doesn’t pay rent?
No. Vital services can’t be withheld, even when rent is owed.
Can I put unpaid utilities on an N4?
No. Claim them on an L2 for a current tenant, or an L10 for a former tenant.
Can I make an existing tenant pay for hydro through a suite meter?
Only with their written consent on the approved form, a rent reduction and proper notice.
How long do I have to claim unpaid utilities from a former tenant?
One year after they moved out.
About Bita Di Lisi
Bita is the lead paralegal at Stonegate Legal Services and is licensed by the Law Society of Ontario. She represents Ontario landlords at the Landlord and Tenant Board and teaches landlords and investors about notices, LTB timelines and the mistakes that cost months.
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