Question:

Utilities are included in our rent (by the lease), but landlord is not paying bills like Mortgage and hydro?

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We live in a rented house (just moved in 2 months ago) which we pay 1600/month for (it's shared). We're on a 1 year lease with no consequences for breaking the leave with 30 days notice. We live in Ontario. The bills and stuff are delivered to our house even though the landlord doesn't live here, and we've been seeing notices for unpaid mortgage and 3rd or final warning for unpaid utilities like hydro (we don't open them but we can tell what they are a lot of the time). What happens to us if the landlord does not pay mortgage? The house will go to the bank, but are we simply transferred along with the house, to be taken over by the new landlord? (the bank. ). Also, what happens if the landlord doesn't pay utilities and our hydro, heat, or hot water gets cut off? It will be winter in a few months, and if our hydro gets turned off, I doubt we'd be able to get it sorted out before it got unlivably cold. Even if it does mean we had to pay the bill ourselves (or part of it).

We really like the house, as its huge, perfect location, right price, perfect everything, so we really don't want to move. Should we just trust the landlord is paying the bills (maybe by direct deposit or something?) or should we ask him whats up. I don't wanna have to find a motel at 1am some morning because we have no power.

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  1. No sorry.  If he goes bankrupt or the bank repossesses the house you will be evicted, unless the new owner wants to rent out the house.  I would give your notice and start looking for a new place immediately.


  2. Theres not much you can do. Have you tried talking with him? It may just be a clerical error. If the house is foreclosed, the bank will ask you to vacate. You are considered a guest of the owner and along with him, would no longer be welcome on the property.  If the utilities go out and he makes no reasonable effort to restore services you may have grounds to sue him for not providing a safe and healthy environment. Do no pay it, you are not financially responsible and will not be able to get that money back. The laws vary from state to state, but it is generally agreed that if your lease contract that he is to pay for those services, then it is a condition of the contract and if he violates that, you may lease without notice.

  3. If it is in your lease that you are making the utility payments to the landlord and he is to be paying them, then I would contact the utility companies with a copy of your lease agreement.  Then I would contact an attorney.  If he house is foreclosed on, you will generally have 3 months or so to get another place.  In the meantime, it really would be in the Realtors best interest to keep the place occupied until it sells.  But again, see an attorney and good luck

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