Student Rentals - utility bills?

Question

In Ontario (Ottawa) people with student rentals, do you include all utilities (heat / hydro / water) in the cost for students, or do the students pay the utilities on their own (split the costs between them)?

Thanks, Andy

Charles Gaucher · Answer

I have a student rental in Kingston, all inclusive and internet. some places are here are even throwing in free netflix.  The snow i bought them alot of salt and a good hand shovel and told them its in their lease.  yes yes i know void clause. but they have been doing a good job. i still end up going to give it a good clean every so often lawn care was contracted out. the way i see it you ccan pay a student living there and hope he keeps up to it. or find some kid on the block and hopefully spark a little bit of entrepreneur skills.

Justin H. · Answer

I pay my PM to contract out my lawn for both my rentalsin Niagara Region

Andy Welmers · Answer

Exactly the reason I was thinking of having students pay full rent, and then I would pay them a fee for any maintenance.

Matt Geerts · Answer

DO NOT DISCOUNT THE RENT WITH AN AGREEMENT FOR MAINTENANCE!!

Read the Residential Tenancies Act. Lawn/snow maintenance clauses in leases are void. Maintenance is always the landlord's responsibility. Of course, the landlord can contract the work out to the student, but that's on a separate contract.

I've read stories of tenants that negotiated for lower rent in exchange for snow/lawn duties, then called up the landlord and demanded that they do it. LTB stands with the tenant because the lawn/snow clause is void, and the discounted rent stays because you can't just jack up their rent because you found out your void clause is void.

Andy Welmers · Answer

@Ming Lim @Steve Potash @Debbie Gilbert

Thanks all for the input. I called up a property manager in the area I am looking to talk about what typical student rentals look like. Their input was all inclusive, including utilities, internet, yard maintenance. With units renting for $400-500 per bedroom. Adds a bit more in expenses, especially with the cost of electricity in Ontario (at least the unit I am looking at is gas heat opposed to baseboard), but the extra $300-400 roughly in expenses could easily be made up for with the extra $800-1000 in potential rent.

Have you had any experience with "contracting" out lawn maintenance to one of the student tenants? Or does this become a hassle, as a lot of the students could disappear for the summer, and leave you hanging? (I was thinking about a payment to the student, opposed to a discount on the rent. If the work is not done, stop the payment, and get it contracted out somewhere else)

On a separate note, Are you providing student rentals furnished or unfurnished? I am assuming this is also more of a local, or landlord specific topic. Leave rooms unfurnished, supply basic (kijiji quality) furniture in the common rooms?

Debbie Gilbert · Answer

Here in Barrie, it is standard practice for the students to pay an all-inclusive rent.  Landlord pays utilities, and INTERNET (!).  Cannot imagine changing the names and setting up accounts (most with first timer fees) for students every year, or in some cases 8 months. Most of us leave snow removal to the students -- but provide lawn maintenance.  Hope that helps.

Cheers,  Debbie

Steve Potash · Answer

Where we are located, the city requires the water/sewer bill to be in the landlord's name, so the students pay the landlord the rent, water, sewer and trash and then the students pay the electric, gas and cable/internet directly to the utility company.  Some landlords tried including electric, gas, cable, internet with the rent to the students... students loved it, landlords got clobbered, because students were now leaving all the lights on, their windows open in the winter with the heat on, etc and the electric/gas bills skyrocketed which now the landlord was paying.   Then landlords tried putting a cap on the utility bills, for example: anything over $300 tenant pays, but students didn't like it because they thought everything was included and now they're getting a random bill which they didn't budget into their expenses.

Ming Lim · Answer

@Andy Welmers - This is a local issue, so hopefully someone from Ottawa will see this thread. In Waterloo, most of my students pay for their own utilities, however, the trend is towards all-inclusive rentals. That would be, hydro, internet, water, etc. all included in the rent. Students are willing to pay a premium for the easy of a single payment.