The municipality says they will add the tenant’s unpaid water bill to our land tax! What can I do about this?
The city does not change the water bill to the tenant’s name, it remains in the owner’s name. Therefore when the bill is not paid the municipality does not try to collect from the tenant even though your tenancy agreement may state that the tenant is responsible to pay. Typically, the municipality will usually add these arrears to your property tax bill. In order to deal with the unpaid utilities you may serve the tenant with the form N5 based on the reason of interfering with the landlord’s lawful rights, privileges or interests. The N5 can be given only if you’re seeking termination of the tenancy.
As of September 1, 2021, landlords can file an application to claim for compensation for expenses they have incurred as a result of the tenant’s failure to pay utilities. The prescribed form is available on the LTB website, at http://tribunalsontario.ca/ltb/forms/.