Submetering and Rent Increases in Ontario Rental Buildings

When a rental building transitions to submetering, questions about rent adjustments are common. The relationship between submetering and rent in Ontario is governed by the Residential Tenancies Act (RTA) and related regulations.

In a bulk-metered building, electricity costs are typically included in the rent. When submetering is introduced and tenants begin paying for electricity directly, the landlord's electricity costs for those units decrease. The question is whether and how this reduction is reflected in the rent.

Ontario's RTA framework addresses this situation. The specific provisions and processes for rent adjustments in connection with submetering transitions have been addressed through various legislative and regulatory mechanisms. We recommend landlords and tenants consult the RTA, the Landlord and Tenant Board (LTB), or a legal advisor for the current requirements.

For landlords, proper documentation and process compliance are essential. This includes following the required notice periods and procedures, providing transparent information to tenants about the transition, ensuring the submetering provider is licensed by the OEB, and maintaining records of the transition process.

For tenants, understanding your rights is important. If your building is transitioning to submetering, review the notices you receive, understand the timeline, and contact the LTB if you have questions about the process or its impact on your rent.

Voltage Vision works with property managers to ensure the submetering transition follows all applicable requirements. While we do not provide legal advice, we can share information about the typical transition process and connect you with resources for specific legal questions.