Ontario Landlord Guide › Can I charge my tenant for hydro, heat or water in Ontario?

Can I charge my tenant for hydro, heat or water in Ontario?

Last updated October 25, 2026 · Written for small Ontario landlords

Short answer: Yes, if the tenancy agreement says the tenant pays. The standard lease has a box for each of electricity, heat and water, and asks you to describe the arrangement, for example the tenant pays the utility company or pays you a portion of the bills. A portion of a bill is not rent, so it can't go on an N4. If a tenant doesn't pay, the L2 (current tenant) and L10 (former tenant) applications let you claim the unpaid utility costs (RTA s. 88.2).

Official source: LTB: Instructions for the L10 application (collect money a former tenant owes) · Last checked Oct 2026

This page covers units under the RTA; if your renter shares your kitchen or bathroom and you live there, see renting rooms in your home.

The rules in one table

Situation	What the rules say	Source
Who pays electricity, heat and water	Whatever the lease says. Section 6 of the standard lease has a Landlord or Tenant box for each, and space to explain the arrangement.	Standard lease s. 6
Tenant pays a share of your bill (for example 40% of hydro)	Not rent. A fluctuating amount like 50% of the hydro bill can be claimed as an unpaid utility, not as rent.	LTB N4 and L10 instructions
Tenant pays you a flat amount each month for a utility	That meets the definition of rent, so it can go on an N4.	LTB N4 instructions
Tenant doesn't pay their share, still living there	Claim the unpaid utility costs on an L2. No notice is needed first if you're only asking for money and not to end the tenancy.	RTA s. 88.2; LTB L2 instructions
Tenant moved out owing utilities	Claim on an L10 within one year after they moved out. The rent deposit and its interest are set off if the order also ends the tenancy.	RTA s. 88.2(2)-(3); LTB L10 instructions
You include a utility in the rent now and want the tenant to start paying a share	In a building with six or fewer rental units: the tenant's written consent, at least 30 days' written notice, and a rent reduction.	RTA s. 138(1); O. Reg. 394/10, ss. 13-15
New tenant, building where tenants pay a portion of a utility	Before signing, give them their percentage, the building's total cost for the last 12 months, and any vacancy in that period.	RTA s. 138(4); O. Reg. 394/10, s. 16
Tenant falls behind and you hold the account	You can't shut off or deliberately interfere with a vital service (hot or cold water, fuel, electricity, gas, heat). If the bill is in your name and the supply is cut because you didn't pay, you are treated as withholding it.	RTA s. 21(1)-(2); standard lease Part K
The account is in the tenant's name and they don't pay	If the utility cuts it off for the tenant's unpaid bill, the tenant can't claim you withheld a vital service.	Standard lease Part K

Switching to a split mid-tenancy: worked example

Example numbers only. You rent both units of a duplex. Hydro is on one account in your name and is included in the basement tenant's rent. The building's hydro for the last 12 months was $2,880, not counting any late payment charges.

Consent first. The tenant has to agree in writing (s. 138(1)). They can say no, and then hydro stays in the rent.
Pick a method. Split by number of units (total cost divided by 2) or by square footage, and use the same method for every unit (O. Reg. 394/10, s. 13).
Work out the minimum rent cut. For the per-unit method: $2,880 divided by 2 units, divided by 12 monthly rental periods, is $120 off the monthly rent (s. 15(2)).
Give written notice. Hand it over on Friday, October 30, 2026 to start charging on Tuesday, December 1, 2026, which is more than the 30 days required. The notice must state the rent reduction, its effective date, the method and how the reduction was worked out (s. 14).
Reduce the rent from the start of the first rental period that begins no later than the first day you charge, here December 1 (s. 15(1)).

Once you charge under s. 138, you can't serve an N4 or apply for eviction or arrears based on the tenant not paying the utility charge (s. 138(3)). If you charge a share of electricity, every fridge you supply in the building must be made on or after January 1, 1994 (O. Reg. 394/10, s. 17(2)).

Where the toolkit helps: The toolkit's Rent and Expense Tracker has a Utilities expense category and monthly summary line, and the LTB-Ready Evidence Pack's communication log records each time you send a bill or ask for payment. See what is inside the $19 toolkit

If the tenant won't pay their share

Keep each bill and a dated record of what you asked for and what was paid. The L2 and L10 instructions ask for one table row per bill: the utility company, the bill date, the total, the period it covers, what the tenant paid and what's still owing, with copies of the bills and the written lease given to the tenant and the LTB before the hearing. Utilities on these forms means heat, electricity and water. We haven't found a notice of termination for unpaid utilities alone, and the N4 is for rent only, so don't put a utility share on it.

Mistakes to avoid

Adding a utility share to the N4. The N4 instructions say a share of a utility bill is not rent. See the N4 7-day rule.
Telling a current tenant they now pay hydro without written consent, notice and a rent cut (s. 138(1)).
Cutting off heat or hot water to get paid (s. 21). Heat also has minimum temperatures; see heat rules.
Taking unpaid utilities out of the rent deposit during the tenancy. The deposit is for the last rent period; see rent deposit rules.
Leaving section 6 of the lease blank or vague. Write the percentage, which bills, and how and when the tenant pays. See the standard lease guide.

Official sources

Not legal advice. This site is general information written by a small Ontario landlord, based on official Ontario and Tribunals Ontario sources as of October 25, 2026. Laws and LTB forms change; check the linked official source before you act, and talk to a lawyer or licensed paralegal (or call the LTB at 1-888-332-3234) about your situation. Not affiliated with the Government of Ontario, Tribunals Ontario or the Landlord and Tenant Board. Full disclaimer.