It has come to our attention that we have been paying for the rental of hot water tanks for 5 townhouses that tenants did not put into their names as per their lease. Is there anything we can do to recoup this loss?

We are not aware of any clear and definitive case law on the issue of the responsibility of parties when it comes to the providing, maintenance of and payment for rental hot water tanks. We are not sure if your own municipality has property standards that require the property owner to provide or maintain appliances like hot water tanks (most do not). Section 20 of the Residential Tenancies Act requires that the landlord maintain the premises and comply with all municipal health, safety, housing, and maintenance standards. So if there are no municipal restrictions on the landlord, then a properly worded lease may be a solid foundation for your argument that the tenant should pay you for what they contracted to, even if you cannot make them transfer the account or payment into their name. If they refuse to switch or pay you, and the amounts owing are significant enough to make it worth your while, effective September 1, 2021 you could file an application with the LTB for unpaid utilities.  The tenant will likely argue “implied use,” meaning that you failed to raise the matter soon enough, and have therefore accepted the current “arrangement” over time.

As of September 1, 2021, landlords can file an application for failure to comply with utility costs with the LTB up to one year after the tenant vacates the rental unit. The tenant must have moved out of the rental unit on or after September 1, 2021. Forms are available at https://tribunalsontario.ca/ltb/forms/

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