Tenancies: Who Pays for the Hot Water Tank Rental?

LTB Cases (residential)

Disputes over hot water tank rental charges are surprisingly common in Ontario residential tenancies. Landlords often assume the charge falls under “utilities,” while Tenants argue that hot water is a vital service the Landlord must provide.

So what does the Landlord and Tenant Board (LTB) say?

As with many tenancy issues, the answer is: it depends on the wording of the lease, and the LTB has decided several cases directly on point.

The Legal Framework

Under the Residential Tenancies Act, 2006 (RTA), Landlords are responsible for providing and maintaining vital services, including hot water. The hot water tank is part of the infrastructure that delivers that service.

However, the RTA does not prohibit a Landlord from contractually shifting the cost of a hot water tank rental to the Tenant, if the lease clearly does so.

This distinction has been central in LTB decisions.

LTB Decisions on Hot Water Tank Rental Charges

1. Mailes v. Pennfund Corp., 2020 CanLII 117946 (ON LTB)

This is one of the clearest LTB decisions on the issue.

Facts:

• The lease stated the Landlord was responsible for water.
• The lease was “silent” on who paid for the hot water tank rental.
• The Tenant was nevertheless charged for the tank rental.

LTB Decision:
The Board found that:

• The lease did not clearly transfer responsibility for the hot water tank rental to the teTant.
• Any ambiguity in the lease was interpreted against the Landlord, as the drafter of the agreement.
• The Landlord was ordered to reimburse the Tenant for the hot water tank rental charges.

Conclusion:
👉 If the lease does not expressly say the Tenant must pay the hot water tank rental, the Landlord remains responsible.

2. NOL-22762-16 (Re), 2016 CanLII 44591 (ON LTB)

Facts:

• The Landlord produced a lease showing the Tenant was responsible for utilities, including the hot water tank rental.
• The Tenant disputed the authenticity of the lease wording.

LTB Decision:

• The Board accepted the Landlord’s evidence.
• Because the lease specifically allocated responsibility for the hot water tank rental to the Tenant, the Tenant was required to pay.

Conclusion::
👉 Clear, specific lease language shifting responsibility to the tenant will be enforced.

3. TEL-72268-16 (Re), 2016 CanLII 72255 (ON LTB)

Facts:

• The lease required the Tenant to pay “all utilities.”
• The hot water tank rental was billed as part of the utility costs.

LTB Decision:

• The Board found that, on the evidence, the utility obligation included the hot water tank rental.
• The Tenant’s claim that the charge amounted to illegal rent was dismissed.

Conclusion:
👉 Where the lease clearly allocates utilities to the Tenant and the evidence supports inclusion of the tank rental, the Board may uphold the charge.

Implications

From these decisions, several principles emerge:

1. There is no automatic obligation for a Tenant to pay the hot water tank rental under Ontario law.
2. Lease wording is critical.
   1. Silence or ambiguity → Landlord pays.
   1. Clear, express allocation → Tenant may be required to pay.
3. General “utilities” clauses are risky unless it is clear that the hot water tank rental is included.
4. The LTB will interpret unclear lease terms against the landlord, particularly where vital services are involved.

Clause Drafting for Landlords

If a Landlord intends for the Tenant to pay the hot water tank rental, the lease should explicitly say so, for example:

“The Tenant shall be responsible for the monthly hot water heater rental charge associated with the rental unit.”

Relying solely on a generic “tenant pays utilities” clause invites disputes, and, as the cases show, may result in reimbursement orders.

Comment

LTB decisions consistently show that hot water tank rental charges live or die on the wording of the lease. Absent clear language, the Board is likely to treat the charge as the Landlord’s responsibility as part of providing a vital service.

For both Landlords and Tenants, the lesson is simple: read the lease carefully — and draft it carefully.

Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com