Tenant Agreement to Pay Directly for Electricity Costs in Ontario

The document is a form that outlines the agreement between a landlord and tenant in Ontario for the tenant to pay directly for electricity costs. This landlord-tenant utility agreement Ontario details the conditions under which the tenant will handle electricity payments, including a rent reduction and the landlord’s obligations. It also provides instructions and calculations for determining the amount of rent reduction based on electricity usage, with provisions for both occupied and vacant rental units during the calculation period.

To fill out the “Tenant Agreement to Pay Directly for Electricity Costs in Ontario” form, you need to follow these steps:

1. Landlord and Tenant Information: Start by filling in the tenant’s name and the address of the rental unit at the top of the form.
2. Landlord’s Request: Read the section where the landlord asks the tenant to pay directly for electricity costs. This section outlines what happens if you agree or disagree with this request.
3. Agreement to Pay Electricity Costs: If you agree to pay directly for electricity costs, sign and date the agreement section. This indicates your consent to take on the responsibility for the electricity bills.
4. Rent Reduction Details: Notice the part that mentions your rent will be reduced accordingly. Ensure you understand how this reduction is calculated based on the attached schedule.
5. Schedule A – Rent Reduction Calculation: If applicable, complete Schedule A, which helps calculate the rent reduction based on past actual electricity use for the rental unit. Follow the instructions carefully for filling out this part.
6. Return the Form: After signing, return the completed form to your landlord. Keep a copy of the signed agreement for your records.

Each tenant under the tenancy agreement must sign the form if agreeing to the change. If there are more than two tenants, additional names, signatures, and dates should be added below the provided spaces.

How to Split Utilities Between Tenants Ontario

Splitting utilities between tenants in Ontario involves a combination of legal requirements, fairness considerations, and practical arrangements. Ontario’s Residential Tenancies Act (RTA) does not specify how utilities must be divided among tenants. However, it does require that the lease agreement clearly states who is responsible for paying utilities. If the landlord is responsible, the cost may be included in the rent. If tenants are responsible, the agreement should specify how the costs are divided. For buildings converted into multiple units, landlords must ensure each unit has separate utility meters unless the rental agreement specifies a different arrangement for utility payment.

If tenants share common spaces and utilities evenly, dividing the bills equally among all tenants may be the simplest and fairest approach. For a more precise division, installing sub-meters for each unit can track exact usage. This method is fairer but involves more setup and maintenance costs. Utilities can also be divided based on the size of each tenant’s living space. Larger units or spaces may incur a higher portion of the utility costs. Sometimes, especially in shared housing situations, utilities are included in the rent at a fixed rate. This can simplify billing but may not reflect actual usage. The chosen method for splitting utilities must be clearly documented in the lease agreement. Include any details about who is responsible for payment, how calculations are made, and due dates for payment.

Separate Electricity Meters for Tenants

In Ontario, landlords and property owners can install separate electricity meters for tenants, a practice known as submetering. This allows each tenant to be billed directly for their individual electricity usage, promoting energy conservation and personal responsibility for energy costs.

Suite Metering Ontario

Suite metering, also known as submetering, refers to the installation of individual meters in each unit of a multi-unit building (such as apartments or condominiums) to measure electricity, gas, or water usage for that specific unit. This approach allows for the direct billing of tenants or condo owners for their actual consumption rather than dividing utility costs proportionally among all units. In Ontario, suite metering has been increasingly adopted as a means to encourage energy conservation and to fairly allocate utility costs.