Inclusive Utilities Being Abused-Looking for solutions

[Andrea Buikema]

Hi there, I am a relatively new investor/landlord. I purchased a single family home with an attached in-law suite in southern Ontario 2 years ago. I currently have it rented as 2 separate apartments. A one bedroom unit(in the suite) and a 2 bedroom unit (in the original house). Because it was originally a single family home, the utilities are all connected and at the time of purchase because I had put 20% down, I had no cash available to separate them. 

I decided to get it rented and start having money coming in. I have had tenants in the 1 bedroom unit for 2 years now, and they are great. But this spring I had new tenants move into the 2 bedroom unit, and my utility bills have been climbing and climbing and climbing ever since. 

I have already tried setting the thermostat to 70 degrees and having it in a lock box to manage heat/hydro consumption... but they just break into the box and crank the heat back up, or plug in space heaters to keep the house at 75 degrees. The house is on city water/sewer and water bills seem to keep climbing as well. 

At this point I do have cash available to separate the utilities, but Im not quite sure what I can do legal in terms of changing the rental agreement. 

I was hoping someone else might have found themselves in a similar situation, or may have some advice at to what I can do to either regain control of the utility costs or transfer that cost to the tenants? 

Thank you!!