How does the utility cost sharing system work?

Living in Calgary, as in other large cities in Canada, involves paying for various utilities - electricity, gas, water, heating, garbage collection, internet, and others. It is important to understand how these costs are distributed between the landlord and tenant, as well as how the system of payment separation works in apartment buildings and residential complexes. In this article, we will take a closer look at the specifics of the utility cost sharing system in Calgary.

Main types of utilities in Calgary

Utilities that are usually paid for by Calgary residents include:

  • Electricity
  • Natural gas (for heating and hot water)
  • Water and sewage
  • Heating (if not included in gas)
  • Garbage collection
  • Telephone services and internet
  • Sewerage In different types of housing (detached houses, apartment buildings, condominiums), the terms of payment and distribution of these services may differ significantly.

Cost sharing system: who pays what?

Landlord and tenant: basic rules

In Calgary, as in most cities in Canada, the terms of payment for utilities are determined by the lease agreement. Typically:

  • The landlord is responsible for paying for the basic services that maintain the building as a whole - for example, heating, garbage, sometimes water and sewer.
  • The Tenant pays their individual bills for electricity, gas (if there is an individual meter), internet, telephone and other services consumed directly in the apartment.
  • In some cases, tenants pay for water and sewerage, if it is stipulated in the contract.
  • If the apartment is rented with utilities included, the rent is usually higher, but the tenant does not receive separate bills.

2. Cost sharing in apartment buildings and condominiums

In apartment buildings, a system of shared utility costs is often used. This means:

  • Common services (heating, water, garbage collection, lighting of common areas) are paid for jointly by all tenants.
  • The cost of such services is distributed in proportion to the size of the apartment or according to other criteria specified in the building's charter or contract.
  • Each resident receives a bill for his or her share of the common expenses.
  • Condominium owners also pay monthly maintenance fees, which include utilities.

Examples of cost sharing

Electricity

  • In single-family homes, tenants pay for electricity based on actual consumption through their own meters.
  • In apartment buildings, electricity for common areas (corridors, elevators) is paid for by the owners in proportion to their share.
  • Individual electricity consumption in apartments is paid for by the tenant.

Gas and heating

  • If the heating is centralized, its cost is shared by all tenants.
  • If the heating is individual (gas boiler in the apartment), the tenant pays for gas according to his/her meter.

Water and sewerage

  • In some buildings, water is included in the rent.
  • In others, tenants receive separate bills or pay proportionally to the area.

Garbage collection

  • This is usually a service paid for by the landlord or building owner.
  • The cost may be included in real estate taxes or in the monthly rent.

How is the payment made?

  • Utility bills can be sent directly to the tenant or landlord.
  • In case the bills are sent to the landlord, he can include them in the total rent or issue a separate bill to the tenant.
  • Payments are usually made monthly, via online banking, mobile applications, or in person at supplier branches.
  • For convenience, many companies offer automatic deductions.

Tips for tenants and homeowners in Calgary

  • Read the lease carefully to understand which services are included in the rent and which need to be paid separately.
  • Ask about individual meters for electricity, gas and water.
  • Keep a record of your payments and keep your receipts.
  • If you live in an apartment building, find out how the common expenses are distributed.
  • In case of disputes or unclear situations, contact the Alberta Residential Tenancy Dispute Resolution Service (RTDRS).

Conclusion

Calgary's utility cost sharing system is based on the lease agreement and the type of housing. In single-family homes, tenants usually pay according to their meter, while in apartment buildings, the cost is shared proportionally among all tenants. Understanding these mechanisms helps to avoid misunderstandings and plan your budget.