Especially with increasing electricity prices, it is common for Ontario landlords to ask tenants to pay their own hydro bills. As a result, we have seen many complaints from landlords whose tenants rack up significant electricity charges but don’t pay the bill. So, what should landlords and tenants alike know about hydro bills?
Landlord-Tenant Agreements about Hydro Bills
A landlord looking to have a tenant pay the hydro bill should consider four issues:
- A tenant has no obligation to pay for hydro if she or he has not specifically agreed to do that.
- In many cases, a tenant’s oral confirmation that he or she agrees to pay for electricity is insufficient. The parties should include an obligation to pay for electricity in the rental agreement. They confirm it in writing in some other way.
- Measuring the electricity use is an important aspect of the problem. If the rental unit has a separate meter, it’s easy enough. The tenant can pay according to the meter readings. Things get much more complicated if the meter covers one or more units. This sets the ground for disputes about how much electricity each tenant used. Consider investing in a separate meter for each unit. It can be a hassle and a costly process if you regularly rent out several units. However, it can save many headaches when it comes to future hydro disputes. A temporary solution could be allocating the cost of electricity between tenants using some clear method beforehand and separating electricity use by, for example, installing coin-operated laundry machines.
- The last but one of the most important issues is whose name is on the hydro bill. In some cases, the landlord leaves the account under his or her name. In other cases, the account is switched to be under the tenant’s name. If the landlord and tenant agree upon the latter, the tenant must confirm that he or she will transfer the bill in his or her name is in writing.
Tenant Doesn’t Pay Hydro Bill: Landlord’s Options.
- First, it is possible to evict a tenant who doesn’t pay the electricity bill using the Landlord and Tenant Board process. However, it’s a common misconception that the landlord can collect the unpaid electricity bill and the rent using the same eviction notice and procedure. That’s not the case.
- However, this does not mean that evicting the tenant for an unpaid electricity bill is impossible. The landlord must give the tenant a proper eviction notice, which usually depends on the number of the rental units in the building and other aspects of the tenancy. Then, the landlord must follow up with the proper eviction application. This will take the landlord to a Landlord and Tenant Board hearing.
Please don’t hesitate to contact us for a case assessment if you are in a situation where you have an agreement about electricity payments, but the bill is not being paid.
