Everything You Need to Know
Utilities 101: What’s Included in Canadian Rentals?
In more than three decades of covering housing, consumer rights, and real-world cost-of-living issues, one truth has remained consistent: few things create more confusion—or more frustration for renters—than utilities.
In 2025, with rents high and budgets tighter, understanding what “utilities included” actually means is no longer optional. It’s essential knowledge for anyone renting in Canada, whether you’re signing your first lease, relocating cities, or reassessing costs in a long-term home.
This guide breaks down what utilities usually include, what landlords are legally required to provide, what renters should budget for today, and how to read a lease with confidence—so you can make informed decisions and avoid unpleasant surprises.
What “Utilities” Really Means in Canadian Rentals
In Canadian rental listings, the word utilities is often used casually—but legally and financially, it carries weight.
Most rentals refer to the following when they mention utilities:
- Electricity (hydro)
- Heat (electric, gas, oil, or central boiler)
- Water and hot water
- Natural gas (if separate from hydro)
- Garbage collection and sometimes sewer
- Internet and cable (often categorized separately as “services”)
When a listing says “utilities included” or “all-inclusive,” it usually means heat, water, and electricity are bundled into the rent. Internet and cable, however, are typically extra unless explicitly stated.
The key takeaway: never assume. What matters is not the listing—but the lease.
Vital Services: What the Law Protects
Across most provinces, including Ontario, certain utilities are legally considered vital services. These typically include:
- Heat
- Running water
- Electricity
Landlords must ensure these services are available at all times—even if the tenant reimburses the cost. A landlord cannot shut off heat, water, or power to pressure a tenant over rent or disputes.
In practical terms:
- If utilities are included in rent, the landlord pays the bills and remains fully responsible for uninterrupted service.
- If utilities are not included, the lease must clearly state which services the tenant must set up and pay.
- If the lease is silent on utilities, responsibility generally remains with the landlord.
This legal framework exists for one reason: housing without basic services is not considered habitable.
Who Pays What in Ontario (and Similar Provinces)
Ontario’s Residential Tenancies Act provides a useful reference point that mirrors how many provinces approach utilities.
Here’s how responsibility usually breaks down:
- Included utilities
- Landlord pays
- Tenant pays a fixed rent
- Service continuity is the landlord’s obligation
- Tenant-paid utilities
- Must be clearly listed in the lease
- Often applies to hydro, gas, or internet
- Utilities may be in the tenant’s name
- Changes after move-in
- If a landlord removes a previously included utility, rent should be reduced by the average monthly cost of that service
For renters, clarity at signing protects you long after move-in.
What Utilities Cost in 2025: Realistic Budgeting
Utility costs vary widely by province, city, building type, and season—but 2025 data provides reliable planning ranges.
Canada-wide averages:
- Electricity & heating: $120–$200/month, rising to $300–$350 in winter
- Water: $50–$70/month (often included in apartments)
- Internet: $70–$100/month
Ontario snapshot (recent averages):
- Total utilities: roughly $300–$330/month
- Electricity: ~$130
- Natural gas: ~$50
- Other services: ~$140
For renters comparing two similar units—one all-inclusive, one not—these numbers often explain why “higher rent” can actually be the cheaper option.
What’s Usually Included vs. Extra (2025 Snapshot)
| Utility | Often Included | Often Extra |
|---|---|---|
| Heat (central) | Apartments | Houses, separately metered units |
| Electricity (hydro) | Mixed | Suite-metered units |
| Water & hot water | Multifamily buildings | Small buildings, flat-fee billing |
| Natural gas | Central systems | Tenant-metered |
| Garbage/sewer | Built into rent | Rare municipal exceptions |
| Internet & cable | Occasionally | Most rentals |
Patterns vary by city, but confirmation in writing always wins.
How to Read (and Negotiate) Utilities in a Lease
A few practical habits can save renters hundreds—or thousands—over the course of a lease:
- Ask direct questions before signing:
- Which utilities are included?
- Which are in my name?
- Ensure utilities are listed clearly and specifically in the lease.
- If utilities shift to the tenant, request a rent adjustment.
- Use local cost-of-living tools to estimate realistic monthly totals.
- Factor winter heating, not just summer bills.
A lease is not just paperwork—it’s your financial roadmap.
Insurance: The Overlooked Utility of Peace of Mind
Utilities keep your home running—but insurance protects everything inside it.
Tenant insurance is not legally required everywhere, but it is increasingly expected—and for good reason. Fire, water damage, theft, or liability issues can create costs far beyond a monthly utility bill.
This is where modern, renter-focused providers like Duuo Insurance come in. Duuo offers flexible, digital-first tenant insurance designed for real renters—simple to set up, easy to manage, and affordable.
For renters balancing costs in 2025, insurance isn’t a luxury. It’s risk management.
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Why This Matters More in 2025
As housing costs rise, predictability matters. Utilities are one of the last areas where renters can still protect themselves through knowledge.
Understanding utilities means:
- Fewer billing surprises
- Better rent comparisons
- Stronger negotiating position
- More financial control
Platforms like Rent-Life.ca help renters compare listings transparently, understand what’s included, and make informed choices across markets like Toronto and beyond—but the final responsibility always starts with reading and understanding your lease.
Final Takeaway: Read Beyond the Rent
Rent is just one number. Utilities tell the real story of affordability.
If there’s one lesson seasoned renters learn—and new renters should adopt—it’s this:
clarity beats assumptions every time.
Ask questions. Get it in writing. Budget realistically. Protect your home.
That’s how renting becomes not just manageable—but empowering.
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Sources & References
- Tenant Rights – Ontario Utilities & Services
https://tenantrights.ca/ontario/tenant-guide-utilities-services-rules-in-ontario - Ontario Apartment Group – Utilities & Landlord Responsibilities
https://ontarioapartmentgroup.ca/resources/residential-tenancies-act/utilities-landlord-responsibilities-and-recourse/ - Simfor Canada – Cost of Living in Canada
https://simforcanada.com/blog/cost-of-living-in-canada/ - City of Toronto – Renter Rights & Landlord Information
https://www.toronto.ca/community-people/housing-shelter/rental-housing-rights-information/renter-rights-landlord-information/ - RentCafe – Utilities Included Apartments (Ontario)
https://www.rentcafe.com/utilities-included-apartments-for-rent/ca/on/ - LaBrosse Real Estate – Average Cost of Utilities in Ottawa
https://www.labrosserealestate.com/blog/buyers/average-cost-of-utilities-in-ottawa/ - Canadian Real Estate Magazine – Average Cost of Utilities in Ontario
https://www.canadianrealestatemagazine.ca/expert-advice/average-cost-of-utilities-in-ontario/ - City of Toronto – Average Market Rents & Utility Allowances
https://www.toronto.ca/community-people/community-partners/social-housing-providers/affordable-housing-operators/current-city-of-toronto-average-market-rents-and-utility-allowances/ - Barrie Housing – All Utilities Included Rentals
https://www.barriehousing.ca/for-rent-all-utilities-included-barrie - Zillow – Utilities Included Apartments (Orillia, ON)
https://www.zillow.com/orillia-on/apartments-with-utilities-included/
