- The lease and the name on each utility account are the first things to check, because responsibility for utilities generally depends on what was agreed.
- Utility payments made to third parties do not count toward the security deposit limit of one month's rent.
- A separate deposit for sub-metered heat, natural gas or electricity is separate from the security deposit.
Disputes over utility bills often start with a surprise: a final gas bill, an electricity balance in the landlord's name, or a charge nobody remembers discussing. When the lease says little or nothing, it is hard to know who is responsible.
This article explains where to look, what the Residential Tenancies Act says about deposits connected to utilities, and how to approach an unresolved dispute. The rules on who must pay a given bill depend on the agreement and the facts, so a lawyer can confirm your position.
This article covers the law of Alberta.
Start with the agreement and the accounts
Responsibility for utilities is usually a matter of what the landlord and tenant agreed, whether in a written lease, in messages, or by how the rental was advertised. Start with the lease, any addendum, and the listing or emails from before you moved in.
Then look at the utility accounts themselves. Whose name is each account in, when did service start, and who has been paying it? Those records often show how the parties actually treated the bills.
- The signed lease and any written changes.
- The original listing, emails or texts about what was included.
- Utility statements showing the account holder, dates and amounts.
- Proof of your payments, such as bank records.
What the Act says about deposits and utilities
A security deposit is any money, property or right paid or given by a tenant to a landlord to secure the tenant's obligations, or to be returned when a condition occurs. It cannot exceed one month's rent.
Only rent paid directly to the landlord counts toward that limit, not payments to third parties such as utility providers. In other words, your own utility bills paid to the provider are not part of the rent for deposit purposes.
If heat, natural gas or electricity is sub-metered, any deposit for it is separate from the security deposit. The sub-meter contract should state the amount and how long it will be held.
Unpaid utilities at the end of the tenancy
If a landlord claims unpaid utilities from your deposit, the landlord must return the deposit with interest, or return the balance with a statement of account showing the deductions, within 10 days after you give up possession. If the exact deduction cannot yet be determined, the landlord returns the unneeded balance with an estimated statement, then gives the remaining balance and a final statement within 30 days.
The statement of account is useful because it shows what the landlord is charging and why. Compare each item to your lease and the utility statements.
If you cannot agree
If the landlord does not return the deposit or statement as required, the tenant may sue to recover it, and the court determines the permitted deductions and orders the balance paid. Alberta.ca also says tenants may apply to the RTDRS or court over deposit deductions.
Either a landlord or tenant may apply to the RTDRS instead of court. Once one party files there, the other is bound to that forum, and a court application on the same dispute is barred unless the RTDRS application is withdrawn. Because of that, it is wise to get advice before filing.
What to do next
- Collect the lease, listing and any messages about utilities.
- Get copies of the utility statements and note the account holder.
- Ask the other party in writing to explain any charge you did not expect.
- Give the landlord a written forwarding address and keep your records for 3 years.
- If money is being held back from your deposit, ask for the statement of account.
- Speak with a lawyer if the amount is large or the lease is unclear.
Frequently asked questions
If the lease says nothing, who pays utilities?
It generally depends on the agreement and the facts, including what was advertised, who held the accounts and how the bills were handled. A lawyer can confirm how that applies to your situation.
Can a landlord count utilities toward the security deposit limit?
Only rent paid directly to the landlord counts toward the limit, not payments to third parties such as utility providers. The deposit cannot exceed one month's rent.
Is a sub-meter deposit part of the security deposit?
No. A separate deposit for sub-metered heat, natural gas or electricity is separate from the security deposit. The sub-meter contract should state the amount and how long it will be held.
How long does a landlord have to return my deposit?
Within 10 days after you give up possession, the landlord must return the deposit with interest, or the balance with a statement of account showing deductions. If the exact amount cannot yet be determined, the final balance and statement are due within 30 days.
Sources
- Residential Tenancies Act, SA 2004 c R-17.1 (King's Printer) — kings-printer.alberta.ca
- Alberta.ca – Starting a tenancy — alberta.ca
- Alberta.ca – Ending a tenancy — alberta.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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