What is the right way to divide utility costs between neighbors?

Utility bills are one of the most common causes of conflict between neighbors, especially in cases of shared living or rental of multi-unit buildings. In Calgary, where utilities are regulated by both municipal and provincial laws, it is important to know your rights and responsibilities. This article outlines effective methods for allocating costs, legal nuances, and practical tools for avoiding disputes.

Basic utilities in Calgary

Key services that need to be split include:

  • Electricity (e.g., ENMAX, ATCO)
  • Water and sewer (paid through city bills)
  • Gas (often included in heating)
  • Garbage and recycling
  • Internet/TV (provider of choice)

Methods of allocating costs

1. Equal split

  • How it works: All neighbors pay the same share.
  • Advantages: Simple, minimal calculations.
  • Disadvantages: Not fair if someone uses more resources.
  • Example: Electricity bill of $200 for 4 people – each person pays $50 .

2. Proportional to living space

  • How it works: Costs are divided according to the ratio of room/apartment sizes.
  • Formula:
    (Your room size / Total size) × Total bill amount text
  • Example: If your room is 20 m² and the total size is 80 m², your share is 25% .

3. By number of residents

  • How it works: The bill is divided by the number of people.
  • When to use: If everyone has equal access to resources (e.g., shared internet user) .

4. Taking into account the period of stay

  • For temporary residents: Costs are calculated based on the number of days of stay.

  • Formula:
    (Number of days of your stay / Total number of days in the cycle) × Bill amount

  • Example: If a neighbor lived for 15 days out of 30, their share is 50% .

5. Specialized apps

  • Splitwise, Split Bills Calculator: Automate calculations and remind you about payments [.
  • Joint bank accounts: Group expense tracking (e.g., through Zelle) .

Legal aspects in Alberta

Landlord responsibilities

  • Provide living standards (heating, water, electricity).
  • Cannot cut off services even for non-payment — this is a criminal offense .

Tenant rights

  • Demand transparency in the allocation of expenses.
  • Challenge unfair terms through the Rent and Tenancy Dispute Resolution Service (RTDRS) .

Practical tips

Before moving in:

  1. Sign a written agreement with a detailed breakdown of costs .
  2. Specify:
  • The method of calculation (equal, proportional).
  • Who is responsible for paying the bills.
  • Penalties for late payment.

While living together:

  • Keep receipts and keep a payment log.
  • Use Google Sheets for transparency .
  • Discuss changes (e.g., installing air conditioning) in advance.

In case of conflicts:

  1. Try mediation through community organizations.
  2. Contact RTDRS for formal resolution .

Conclusion

Dividing utility costs in Calgary requires clear communication, knowledge of the law, and the use of modern tools. Regardless of the method you choose, the key principles are fairness and documentation of agreements. Avoid verbal agreements, use technology to automate payments, and consult Alberta's legal resources in case of disputes.