Utilities

Understand utilities in Canadian real estate, including which services are essential, who pays for them, and how they affect monthly home costs.

Utilities

May 22, 2025


What are Utilities?

Utilities refer to the essential services required to operate a property, including water, gas, electricity, heating, and sometimes telecommunications or internet access.

Why Do Utilities Matter in Real Estate

In Canadian real estate, utilities are part of the ongoing homeownership or tenancy costs. These services must be connected, paid for, and maintained by either the property owner or tenant, depending on the lease or agreement.


Typical utilities include:
  • Hydro (electricity)
  • Natural gas or oil (heating)
  • Water and sewer
  • Waste collection and recycling
  • Internet, phone, and cable (optional)


Buyers and renters should budget for monthly utility bills and inquire whether the property is separately metered or part of a shared system. In condos, some utilities may be included in condo fees. Utility costs vary by location, home size, efficiency, and energy source.


During a sale or move-in, utilities must be transferred or activated to ensure service continuity. Delays can result in inconvenience, fines, or reconnection fees.


Understanding utilities helps homeowners and tenants plan for regular expenses and ensure safe, comfortable living conditions.

Example of Utilities in Action

A tenant pays their landlord $1,800/month plus utilities, covering hydro, heating, and water, which average $280/month depending on season and usage.

Key Takeaways

  • Essential services for home operation.
  • Includes hydro, water, heat, and internet.
  • Costs vary by location and usage.
  • May be included in rent or condo fees.
  • Must be transferred or activated at move-in.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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