Landlord/tenant utility bills

[MoneyGuy]

I think some lawyers hang out here. Opinions are appreciated on this.

Many Alberta communities force landlords to have utility bills in their names instead of allowing them to be in the tenant's name. Possible problem is that the Landlord and Tenant Act (if that's the proper name) apparently prohibits landlords from charging a deposit to cover the possible non-payment of utilities. I've been told this but I've not yet been able to verify this.

My questions:
1. If anyone has the Act, can you tell me if it's in fact illegal for a landlord to charge a deposit for non-payment of utilities?
2. If it is illegal to charge this deposit, what about the legality of a municipality forcing landlords to have utility accounts in their name when they can't safeguard themselves with a deposit?

I need to know these things but have not yet had an opportunity to verify what I've been told but appreciate any comments on this issue. If anyone has a link to the Act, also appreciated. I'll look later.

[photon]

IANAL, but I haven't heard anything quite like this, the situations I've been told is where some towns the utilities require the landlord to be on the hook for the utilities.. the tenant still pays the utilities and they're in the tenant's name, but if the tenant doesn't pay ultimately the landlord is on the hook. I haven't personally experienced this though, and I probably wouldn't buy a property in such a place.

It is illegal to charge any kid of additional deposit above and beyond a security deposit to a tenant.. I can't even charge a refundable pet deposit, I have to charge a one time "pet fee" that I can't refund

Non-payment of utilities would have to come out of the security deposit. Or easier would be to just increase the rent and include the utilities.

http://www.servicealberta.ca/consume...sit#Definition

Security Deposit Information A landlord can collect a security deposit at the beginning of the tenancy. A security deposit can be money, or an item other than money that is agreed to by the landlord and the tenant. The value of the item should be equal in value to the amount of the security deposit. This agreement should be in writing.
The purpose of a security deposit is:

• To cover the landlord's costs of repairing or replacing physical damage to premises.
• To cover the costs of cleaning because of extraordinary or abnormal use. This does not include cleaning associated with normal wear and tear.
• To cover any arrears of rental payments.
• To cover other costs agreed to by the tenant in the residential tenancy agreement, such as legal fees, utilities, late fees, etc.

Amount of security deposit
A security deposit cannot exceed the monthly amount of rent for the first month of the residential tenancy agreement. It cannot be increased at any time during the tenancy, even if the monthly rent is increased later. (See the next section "Increase of security deposits"). If a residential tenancy agreement contains a clause that requires a security deposit in excess of one month's rent, that clause is illegal and unenforceable. The tenancy agreement cannot take away the protection provided by the RTA.
A landlord should give a tenant a receipt for the security deposit and any other payments that are received from the tenant.
A refundable fee or charge is part of the security deposit. A landlord cannot charge additional refundable fees, i.e. for an extra parking stall, if the total of the security deposit and the additional refundable fees to be paid by the tenant exceeds one month's rent. {See Additional Fees and Charges module}
A non-refundable fee or charge that is agreed to in the residential tenancy agreement is not subject to the security deposit restrictions. Non-refundable fees cannot be deposited into the security deposit trust account. For example, if a landlord charges $100 per pet as a non-refundable fee for the privilege of having a pet in the premises, this fee will not be held by the landlord as security, and will not be returned to the tenant. It is not a security deposit as defined by the RTA.
Some residential tenancy agreements include a "late rent charge". If the tenant does not pay the late rent charge and if the charge is reasonable, the landlord is entitled to deduct the charge from the tenant's security deposit at the end of the tenancy 7</span> .

http://www.qp.gov.ab.ca/documents/Acts/R17P1.cfm

[Bill Bumface]

Originally Posted by photon

IANAL

You sure are

[photon]

It's a legitimate acronym!!

[burn_this_city]

Of course an acronym about lawyers would involve the word ANAL.

[Boblobla]

Similar situation. We haven't had the problem yet but the tenants have been a nightmare.

This the the last month of their lease and they have been informed it will not be renewed. My parents own the house and it is written into the lease that they will give me $X/mo for utilities. If they don't pay me this money can legally come out of their security deposit?

[photon]

I think so, the security deposit can be used to cover any money owing.

BTW strictly speaking you can't "not renew" a lease with a tenant.. rather if you don't renew a fixed term lease, it converts to a periodic lease with the same terms. You as the landlord can't opt to not renew the lease and basically force them out; that's not legal.

There's only specific circumstances where a landlord can compel a tenant to leave. Mind you nonpayment of utilities if they committed to pay that would be cause (since that would basically be part of the rent I think).

[Boblobla]

The lease they signed was only for 6 months. The people at that Landlord 911 number that you passed along (I am pretty sure it was you...) said that as long as you give them appropriate warning they have to be out by the date you set on the original agreement. They were given 2 months notice that the lease would be terminated at the end of Feb.

[onetwo_threefour]

Originally Posted by photon

I think so, the security deposit can be used to cover any money owing.

BTW strictly speaking you can't "not renew" a lease with a tenant.. rather if you don't renew a fixed term lease, it converts to a periodic lease with the same terms. You as the landlord can't opt to not renew the lease and basically force them out; that's not legal.

There's only specific circumstances where a landlord can compel a tenant to leave. Mind you nonpayment of utilities if they committed to pay that would be cause (since that would basically be part of the rent I think).

Where'd you hear that? That would completely remove all meaning to the notion of a fixed term. A fixed term expires on the day set out in the agreement. If no renewal is agreed to the tenant is obliged to vacate. I would recommend giving tenants notice a month in advance if you are not intending to renew a lease and that you want them out, but you certainly can do so if you have a fixed term. You can't 'terminate' a lease except for the reasons the act provides for, but a fixed term tenancy terminates on its term.

(i) “periodic tenancy” means
(i) a tenancy under a residential tenancy agreement that is renewed or continued without notice,
(ii) with respect to a fixed term tenancy that contains a provision allowing for renewal or continuation of the tenancy without notice, that part of the tenancy that arises after the end of the fixed term tenancy, and
(iii) with respect to a fixed term tenancy that does not contain a provision referred to in subclause (ii), the part of the tenancy that arises after the end of the fixed term tenancy, where the landlord and tenant by their conduct expressly or impliedly indicate that they intend that the tenancy be renewed or continued after the end of the fixed term tenancy


Notice to terminate not required
15 Notwithstanding any agreement to the contrary, notice to terminate is not required in order to terminate a fixed term tenancy.


A periodic tenancy can arise from a fixed tenancy if the landlord is dumb enough to keep accepting rent cheques and not tell people to get out when they fail to move out on the last day of the fixed tenancy, but it's certainly not automatic. You can wait till the last day of the fixed term teancy, show up at the door and tell them to get out.

[photon]

Well then, that certainly makes things easier. Excellent thanks! Not sure why I thought that then.

[Boblobla]

Originally Posted by photon

Well then, that certainly makes things easier. Excellent thanks! Not sure why I thought that then.

That is probably the one little part of the Tenancies act that is in favour of the landlord...

[onetwo_threefour]

Originally Posted by photon

Well then, that certainly makes things easier. Excellent thanks! Not sure why I thought that then.

Hey, no problem... Just remember not to include a renewal term in your fixed lease and remember to sign a new lease before the old one expires every time. (if you are actually wanting to renew, that is)

If you let it go on past the term and accept rent it's pretty easy to end up in a periodic tenancy by accident.

[MoneyGuy]

Thx to all for the comments, especially those that pertained to the topic. It seems like a landlord could charge a deposit for unpaid untility bills, but because it cannot be more than the first month's rent it would not cover the LL if the tenant skipped out with unpaid rent and unpaid utility bills. That seems to leave the LL in a difficult position and I would think that is partly due to municipalities that have the policy of forcing landlords to have utility accounts in their name instead of the tenants'.

[photon]

Yup, I know landlords that have avoided certain places for that very reason.

I mean the potential risk is pretty big really.. tenant goes months and months without paying, pays just enough to stave off disconnection, gets disconnected, flakes out, leaving a many hundred or even thousand dollar bill.

[ken0042]

The other thing I saw was on an episode of "Holmes on Homes", he was helping a landlord whose tenant had a grow-op running. Turns out there was ~$30K worth of assesed damages with Ontario Hydro, and if the hydro was in the landlord's name she would have been on the hook for that.

I don't see how a municipality can force a landlord to have to include utilities onto rent. I've always preferred as a tenant to have it not included; so that instead of my landlord estimating high I could have control over my costs.

[MoneyGuy]

Originally Posted by ken0042

The other thing I saw was on an episode of "Holmes on Homes", he was helping a landlord whose tenant had a grow-op running. Turns out there was ~$30K worth of assesed damages with Ontario Hydro, and if the hydro was in the landlord's name she would have been on the hook for that.

I don't see how a municipality can force a landlord to have to include utilities onto rent. I've always preferred as a tenant to have it not included; so that instead of my landlord estimating high I could have control over my costs.

I've seen a partial list of municipalities that do this. There are about 15 names on it. There are others.