Utilities Clause in a Lease: Who Pays for What?
A utilities clause in your lease determines whether you or your landlord pays for hydro, gas, water, heat, and internet. In Ontario, the answer has real legal implications — especially when utilities are included in your rent.
What Does a Utilities Clause Cover?
A utilities clause in a residential lease defines which services are paid by the landlord (included in rent) and which the tenant must set up and pay directly. Common utilities addressed in leases include:
- Electricity / Hydro: Lighting, appliances, and in some units, baseboard heating.
- Natural Gas: Heating and hot water in many Ontario homes and apartments.
- Water and Sewer: Usually covered by the landlord in large buildings; sometimes charged to house tenants.
- Heat: A vital service — the landlord must provide it if included in rent.
- Internet and Cable: Increasingly included in newer builds; rarely a legal obligation for landlords.
Who pays for what varies enormously between leases. In some all-inclusive apartments, rent covers everything. In others — particularly detached homes and semi-detached units — tenants pay all utilities directly. Neither arrangement is inherently better, but both must be clearly stated in your lease.
Tenant Rights on Utilities in Ontario
Under Ontario's Residential Tenancies Act, 2006(RTA), landlords have specific obligations when utilities are included in your rent. These are known as “vital services” and they cannot be interrupted — even if the tenant is in arrears on rent.
Vital services a landlord must maintain if included in rent:
- Heat (at a minimum temperature set by local bylaws — typically 21°C from September to June)
- Electricity and hydro (if included in the rent)
- Hot and cold running water
- Fuel (natural gas, propane, or oil if the unit relies on it for heat or hot water)
Critical protection: Under section 21 of the RTA, a landlord cannot withhold or interfere with the supply of a vital service, care service, or food, even if the tenant owes rent. Doing so is illegal and can result in an emergency LTB order and significant penalties. If your landlord has shut off utilities, call the LTB immediately for emergency relief.
If a tenant is responsible for utilities and fails to pay the provider directly, any service interruption is the tenant's own responsibility — not the landlord's. The lease should clearly state who holds the account with each utility provider.
Red Flags to Watch in Your Utilities Clause
Utility clauses can be a major source of unexpected costs and disputes. Here are the patterns LeasePlain's AI flags as concerning:
Vague “utilities included” language with no itemized list
If the lease says utilities are included but doesn't specify which ones, disputes arise. Get an explicit list: hydro, gas, water, heat, internet.
Tenant responsible for all utilities without any cap or formula
Some leases shift 100% of utility costs to the tenant while the landlord controls the building's insulation, windows, and systems. Watch for clauses that make you liable for costs you can't control.
Clause allowing landlord to add utility charges mid-tenancy
Once a lease is signed, the landlord generally cannot unilaterally remove benefits (like included utilities) without proper notice and a rent reduction. A clause purporting to do so may be unenforceable.
No mention of who pays for common-area utilities
In multi-unit buildings, hallway lighting, laundry rooms, and lobby heat may be billed separately. Confirm what you're responsible for before signing.