Ontario Rental Utilities Checklist | Sam Kamra

Settle responsibility before the lease is signed

The direct answer is that an Ontario landlord should identify who pays for electricity, heat and water before accepting the tenancy, record the arrangement in the standard lease, and confirm that the property can actually be billed that way. If a utility is included in rent, do not later send the tenant an informal share of the bill. If the tenant will pay directly, confirm the meter, account-opening process and service start date.

Section 6 of Ontario's standard lease records which services are included and who is responsible for each utility. Section 5 records lawful rent and separate charges for landlord-provided services. Walk through both sections with the tenant and avoid vague phrases such as “utilities extra” when different fuels, common areas or multiple units are involved. Sam Kamra recommends turning every operating assumption into a dated document before keys change hands.

Verify the meter and billing structure

Match every meter or suite meter to the correct unit and photograph identifiers at move-in. Record readings where appropriate, confirm whether common-area consumption is included, and retain recent bills. A tenant paying a provider directly is different from a tenant reimbursing a landlord, so the lease and records should describe the real arrangement.

Shared utilities require extra care. Section 138 of the Residential Tenancies Act permits prescribed apportionment in buildings with no more than six rental units only with written tenant consent, adequate notice, a required rent reduction and compliance with the prescribed rules. Ontario Regulation 394/10 sets permitted methods, including division by residential units or allocation by square footage, and excludes late-payment penalties from the shared cost. Obtain legal guidance before using this framework rather than inventing a head-count or estimated-use formula.

Give prospective tenants the required information

When a landlord charges tenants an apportioned portion of a utility, the Act requires information for a prospective tenant before the tenancy agreement is made. That includes the percentage applicable to the unit, the building's total utility cost for the prescribed period, relevant vacancy information and other prescribed details. Preserve the disclosure and the records supporting each number.

Ontario Regulation 394/10 also requires at least 30 days' written notice before an existing tenant begins paying an apportioned utility cost, along with the rent reduction, effective date and calculation method. The LTB's T7 instructions address disputes about suite meters and apportioned costs. Sam Kamra's practical property guidance can help owners organize operational questions, while additional GTA real-estate resources support the wider rental-property file.

Protect vital services and maintain equipment

The Act prohibits a landlord from withholding a reasonable supply of a vital service the landlord must provide and from deliberately interfering with a vital service. Ontario's standard-lease guide identifies hot or cold water, fuel, electricity, gas and heat as vital services. A landlord who must pay the provider cannot let service fail through non-payment and treat the interruption as a collection method.

Keep landlord-controlled equipment and systems in good repair, respond promptly to outages and document provider or contractor communications. Give tenants clear emergency contacts and instructions for reporting leaks, no heat or electrical problems. If the tenant pays a provider directly, keep proof of the agreed responsibility and obtain advice before taking enforcement action; do not enter the unit, interrupt service or alter access outside the lawful process.

Audit bills and change arrangements lawfully

Create a monthly utility log showing the provider, service address, billing period, meter reading where available, amount, allocation method, payment and supporting bill. Reconcile vacant periods and common-area consumption. At move-out, record final readings, confirm account transfers and return any records or funds required by the lease and law. Never add administrative markups, penalties or unrelated costs without a clear lawful basis.

If the arrangement no longer works, review the lease, Act, regulations and required LTB forms before changing it. The Ontario standard-lease signing checklist supports the wider tenancy file. CB Herald's discussion of Sam Kamra and public LTB data illustrates evidence-based review, while Barchart's report on the RealEstateBuyer.ca launch covers Sam Kamra's broader property-services work. The conclusion is practical: define, disclose, measure, preserve and change only through a verified lawful process. Use this checklist with current legal and utility-provider advice for the specific property.

Questions and answers

Ontario Rental Utilities FAQ

Can an Ontario landlord make a tenant pay utilities?

Yes, when the tenancy agreement lawfully assigns that responsibility. The standard lease should state who pays electricity, heat and water, and the property's billing setup must support the arrangement.

Can a landlord start charging an existing tenant for utilities that were included in rent?

Not through an informal notice or added invoice. Changing responsibility can trigger consent, notice, rent-reduction and other statutory requirements, so the landlord should obtain legal advice and follow the applicable process.

How can utility costs be divided in a small Ontario rental building?

Where section 138 applies, Ontario Regulation 394/10 permits prescribed methods based on the number of residential units or unit square footage, with written consent, disclosure, notice and a rent reduction. Do not substitute an improvised formula.

Can a landlord shut off utilities when a tenant owes money?

A landlord cannot withhold or deliberately interfere with a vital service contrary to the Residential Tenancies Act. Use the lawful notice and LTB process appropriate to the obligation and facts.

What utility records should a landlord keep?

Keep the signed lease, disclosures, consents, notices, rent-reduction calculation, provider bills, meter identifiers and readings, allocation worksheets, payment records and outage or repair communications.

Authoritative sources

This article provides general information, not legal, tax, mortgage or financial advice. Confirm figures and eligibility with the appropriate professional and current official sources.