Submetering and Utility Billing Laws in Ontario Rentals

Understanding how submetering and utility billing works can help tenants reduce costs and avoid disputes. In Ontario, renters often face bills for electricity, water, or gas that are allocated by submetering or utility billing systems installed by landlords or property managers. This guide explains what submetering is, when it is allowed under provincial rules, what charges are reasonable, and what steps tenants can take if a bill seems incorrect or unfair. It also covers the forms and tribunal resources tenants may use to resolve disputes, tips for documenting bills and meter readings, and practical rights and responsibilities both renters and landlords should know to keep utility billing transparent and compliant.

What is submetering and how does Ontario regulate it?

Submetering means each unit has a separate meter, and tenants are billed for actual usage, or a utility billing system allocates a share of a master metered bill. In Ontario the governing law is the Residential Tenancies Act, 2006^[1], and disputes about billing or improper charges are handled by the Landlord and Tenant Board^[2]. Whether a landlord can bill you depends on your lease, local rules, and whether the calculation is transparent and reasonable.

Common billing methods and what to watch for

• Charges based on individual submeters that record each unit's actual electricity, water, or gas usage.
• Utility billing where a landlord divides a master meter bill among units using a formula (by square footage, number of occupants, or another agreed method).
• Fixed utility fees included in the lease as a set amount rather than measured usage — these must be written clearly in your rental agreement.
• Billing with itemized calculations and receipts — tenants should receive enough information to verify charges.

When submetering may be problematic

Submetering can be lawful but problematic when calculations are opaque, equipment is faulty, or charges include undisclosed markup. If you suspect errors, request detailed billing information from your landlord and compare the submeter reading to any available utility statements. If the rental agreement does not clearly allow a billing method, you can raise the issue with the Landlord and Tenant Board.^[2]

Practical steps tenants can take

1. Document the bill: keep copies of every invoice, meter readings, photos of meters, and any correspondence about charges.
2. Contact your landlord or property manager: ask for an itemized explanation and the formula used to allocate shared utility costs.
3. Request repairs or meter checks if readings appear incorrect so a qualified technician can verify meter function.
4. Apply to the Landlord and Tenant Board if discussions don’t resolve the issue; the Board can order refunds or adjustments when charges are improper.^[2]

Contracts, disclosure and what to check before signing

Before you sign a lease, check how utilities are handled. Look for a clear clause that explains whether utilities are included in rent, billed by meter, or allocated by formula. If utilities are billed separately, ensure the method is written in the lease and that you receive explanations or access to meter readings. For general information on tenant and landlord duties, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained and local fact pages like Tenant Rights and Landlord Rights in Ontario.

FAQ

Are landlords allowed to bill utilities through submeters?

Yes. Landlords can bill tenants for utilities if the lease allows it and the billing method is reasonable and transparent; you can dispute charges with the Landlord and Tenant Board if needed.

What should I do if a bill looks too high?

Collect copies of the bill, take a current meter reading, ask the landlord for an itemized calculation, and if unresolved, apply to the Landlord and Tenant Board for a review.

Can a landlord add markup to utility bills?

Any markup or administrative fee must be disclosed in the lease and must be reasonable; undisclosed markups may be challenged at the Board.

How-To

1. Collect all bills, your lease clause on utilities, and photos of meter readings for the period in question.
2. Contact the landlord in writing to request an itemized calculation and any supporting receipts or meter data.
3. If you get no satisfactory response, file an application with the Landlord and Tenant Board explaining the issue and attaching your evidence.^[2]
4. Attend any scheduled hearing with your documentation and be ready to explain discrepancies and the remedy you seek.

Help and Support / Resources

• Landlord and Tenant Board – information and forms
• Residential Tenancies Act, 2006 – Ontario
• Rights and responsibilities when you rent – Ontario.ca

If you are looking for a new place or considering options while resolving a billing dispute, Find rental homes across Canada on Houseme.

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1. [1] Residential Tenancies Act, 2006 — Government of Ontario
2. [2] Landlord and Tenant Board — Tribunals Ontario
3. [3] Landlord and Tenant Board Forms — Tribunals Ontario