You just got a bill for hundreds of dollars in unpaid utilities. The tenant moved out last month, and now you're stuck with the charge. If you own a rental property in the Lower Mainland or Fraser Valley, this might sound familiar.
In British Columbia, the rules about utilities can be tricky. Some bills follow the tenant, but others stay with the property. That means the landlord gets stuck paying, even if they didn't use the service.
So if you've found yourself asking, "are landlords responsible for unpaid utility bills", you're in the right place. Here's a breakdown of what costs you're responsible for as a landlord and how to avoid surprise charges.
Utility Bill Responsibilities According to BC Law
British Columbia has clear landlord utility bill laws, but they can be misunderstood or overlooked. The Residential Tenancy Act outlines who pays for what, but the lease must be clear.
When it comes to rentals, you can choose to include utilities in the rent or not. If you expect your tenant to pay, they should open the account in their own name. This applies to things like:
- Electricity
- Gas
- Internet
However, some services must stay with the property, no matter what your agreement says. For example, water and garbage are often billed to you as the owner. And many cities in the Lower Mainland and Fraser Valley will not send these bills to a tenant.
To avoid problems, you must put utility terms in writing. A clear lease gives you peace of mind and fewer surprises.
When Are Landlords Responsible For Unpaid Utility Bills?
You'll notice that responsibility comes down to whose name is on the utility account when understanding are landlords responsible for unpaid utility bills. If the account is in your name, you are responsible for the charges. Even if your tenant agrees to pay, the provider will hold you accountable.
This is especially important with services tied to the property, like water and garbage. Cities do not chase tenants for unpaid amounts. They will send the bill to you, and it can end up as a charge on your property taxes.
Hydro and gas can be different, since tenants can usually set up their own accounts. But if they don't, and you didn't check, you may get stuck with the final bill. It does not matter if the tenant used the service, you will still be asked to pay.
Specific Utility Providers in the Lower Mainland & Fraser Valley
Now that you understand why account names matter, let's look at how local utility providers handle things. Each company has its own rules, and knowing them helps you stay protected.
According to BC Hydro's official guidelines, if a tenant moves in but doesn't set up an account in their name-and there's no Rental Premise Agreement in place-electricity service may be disconnected.
BC Hydro holds whoever is listed as the account holder responsible for all charges. If the tenant sets up the account, they're liable for the bill. But if no one takes action, you, as the property owner, could be back-billed for the electricity used during that period.
When it comes to gas, FortisBC manages it similar to Hydro. They bill whoever holds the account. So if your tenant forgets to open one, and the gas is used, the charges can land on you.
However, unlike BC Hydro and FortisBC, Municipal utilities work differently. These include water, sewer, and garbage services. In cities like Surrey, Langley, Abbotsford, and Vancouver, these bills stay with the property. That means you get the bill, not the tenant.
If municipal bills go unpaid, some cities will transfer the balance to your property taxes. You won't get much warning, and that charge can add up fast.
Common Landlord-Tenant Responsibility Scenarios
Let's look at how these rules play out in real life. These are the kinds of problems we've helped many first time landlords solve:
The tenant vacates without paying their BC Hydro bill. If the account was in the tenant's name, you are not responsible for the tenant utility payment. But if no one set up an account, you get billed for the gap.
The tenant uses extra water and leaves a large balance. Since water is billed to the property, the city sends that bill to you. This is true even if your lease says the tenant will pay.
You own a multi-unit home with shared utilities. If you cover the bill, you need a clear way to divide costs between tenants. This can be done with a fixed fee or regular usage checks.
Recourse Options for Unpaid Utility Bills
Even when you do everything right, a tenant may still leave you with an unpaid bill. The good news is, if that happens, you're not stuck without support for utility bill disputes. Your first step is to gather your documents:
- Copy of the lease
- The unpaid bill
- Proof that the tenant agreed to pay
With that in hand, you can file a claim with the Residential Tenancy Branch. You may also be able to deduct the amount from the tenant's security deposit. This only works if you follow the rules and give proper notice. Timing matters, so make sure you act quickly after the tenant moves out.
If the amount is more than the deposit, you can take the case to Small Claims Court. It takes more time, but it can help you recover larger losses. Just know that with the right approach, you can recover what you're owed and protect your property from future issues.
Make Utility Bills One Less Thing to Worry About
As you can see, a few simple oversights can lead to costly surprises. The answer to are landlords responsible for unpaid utility bills depends on your lease, your city, and how well you manage utility accounts.
At Axford Real Estate & Property Management Group, we've helped landlords across the Lower Mainland and Fraser Valley avoid these exact issues. With over 40 years of experience and a deep understanding of local utility rules, we know how to protect your property and your bottom line.
Our team handles everything from tenant screening to lease enforcement, so you don't have to stress over unpaid bills. To get expert help managing your rental, don't hesitate to reach out.