Energy-Efficient Rental Units: A Guide to Lower Bills

Table of Contents

• What Makes a Rental Unit Energy Efficient

• Rental Apartment Energy Efficiency Checklist for Apartment Viewings

• Energy-Saving Tips for Apartment Renters You Can Use Today

• Toronto Apartments with Utilities Included: What to Know

• Heating Systems and Winter Comfort in Energy-Efficient Units

• How to Verify Energy Performance Before Signing a Lease

• Frequently Asked Questions

Last Updated: October 4, 2026

What Makes a Rental Unit Energy Efficient

Energy-efficient rental units are designed to use less energy for heating, cooling, and powering appliances while maintaining comfort year-round. At FoxySuites, our 50 Castleton Avenue property, for example, is EnerGuide Certified at 27 GJ/year with on-site renewable electricity.

Energy efficiency depends on the building envelope (windows, insulation, air sealing), modern heating systems, and Energy Star appliances, all of which can reduce utility bills.

Efficient units hold heat better, respond faster to temperature adjustments, and use appliances that consume less power.

Toronto rental buildings range from older walk-ups with single-pane windows and radiator heating to newer constructions that exceed minimum code standards through efficient design and equipment.

Rental Apartment Energy Efficiency Checklist for Apartment Viewings

When you tour a rental apartment, you're looking for specific features that signal energy efficiency. Use this checklist during your visit to spot which units will cost less to operate.

Windows and Doors

• Check if windows are double-pane or triple-pane (not single-pane)

• Look for frames that feel solid and seal tightly when closed

• Open and close windows to feel for air leaks

• Inspect door frames for weatherstripping

Heating System

• Ask the landlord what type of heating system the unit uses

• Hydronic (hot-water) heating and forced-air systems are common in Toronto

• Look for a modern thermostat that lets you control temperature by room or time of day

• Check if radiators or vents are unobstructed

Appliances

• Look for the Energy Star label on the refrigerator, dishwasher, and washer/dryer if included

• Newer appliances use significantly less electricity and water than older models

• Ask how old the appliances are (units under 10 years old are typically more efficient)

Insulation and Air Sealing

• Feel walls for drafts near corners and baseboards

• Check caulking around windows and door frames for gaps

• Ask the landlord about attic insulation (don't open or disturb it yourself)

• Ask about recent renovations that might have improved insulation

Water Fixtures

• Check faucet aerators (they should have a screen that restricts flow)

• Look for low-flow showerheads

• Inspect toilets to confirm they're modern (older models use more water per flush)

Building Location

• Units facing south get more passive solar heat in winter

• Ground-floor units above unheated space can feel colder

• Corner units have more exterior walls and lose more heat

• Upper floors stay warmer in winter but hotter in summer

Keep this checklist on your phone when apartment hunting. The more boxes you check, the lower your utility costs will likely be.

Energy-Saving Tips for Apartment Renters You Can Use Today

You can save energy in any rental unit with these low-cost or free steps.

Temperature Management

• Set your thermostat 2 degrees lower in winter and higher in summer

• Wear layers indoors instead of cranking heat

• Use window coverings to block summer sun and retain winter heat

• Close doors to unused rooms to avoid heating or cooling them

Appliance Habits

• Run the dishwasher and washing machine only with full loads

• Use cold water for laundry (hot water accounts for significant energy use)

• Unplug devices and chargers when not in use

• Use the microwave instead of the oven for small meals

Lighting

• Switch to LED bulbs in all fixtures

• Turn off lights when leaving a room

• Use natural light during the day

• Ask your landlord about dimmer switches (electrical work must be done by a licensed electrician)

Water Conservation

• Take shorter showers

• Report dripping taps to your landlord right away

• Run the tap only while actively using it

• Use a basin to rinse dishes instead of running water continuously

Most of these habits need no landlord approval and can lower your bills if you pay your own utilities.

Toronto Apartments with Utilities Included: What to Know

Some Toronto rentals include utilities in the rent, which changes how you evaluate energy efficiency and requires a different cost-comparison approach.

How Utilities-Included Rentals Work

When utilities are included, the landlord pays heating, electricity, and water bills directly. You receive one invoice: rent only.

This creates opposing incentives: you lack motivation to conserve (usage doesn't affect rent).

Advantages of Utilities Included

• Predictable monthly cost: No surprise utility bills; simplifies budgeting.

• No account setup: Avoid contacting providers, deposits, or managing multiple bills.

• Protection against rate increases: Under the RTA, rent can rise only once every 12 months with 90 days' written notice, so a utility rate hike can't be passed on mid-year.

• Landlord efficiency incentive: Landlords invest in upgrades (furnaces, insulation, LED lighting) to reduce costs, benefiting your comfort.

Disadvantages of Utilities Included

• Higher base rent: Landlord builds estimated utility costs into rent; you may overpay if frugal or away from home.

• Limited control: You cannot choose heating system, thermostat, or appliances.

• Less motivation to conserve: Usage doesn't affect your bill, so you may use more energy.

• Efficiency varies: some buildings have older, less efficient systems, so ask what's installed.

How to Compare Utilities-Included Rentals Against Units Where You Pay Separately

To evaluate utilities-included units, calculate total monthly housing cost (rent plus utilities) and compare it to separate-pay units.

Step 1: Determine Which Utilities Are Included

Ask the landlord explicitly which utilities are covered: heat and electricity only; heat, electricity, and water; or all utilities plus internet.

Step 2: Estimate Utilities for a Comparable Unit

Obtain actual utility bills for comparable units or ask the landlord for average monthly costs.

Step 3: Calculate Total Monthly Housing Cost

For the utilities-included unit:

• Total monthly cost = Rent (including utilities)

For the separate-pay unit:

• Total monthly cost = Rent + Estimated utilities

Example:

• Unit A (utilities included): $1,900 rent = $1,900 total

• Unit B (utilities separate): $1,750 rent + $140 utilities = $1,890 total

Unit B is $10 a month cheaper overall, but Unit A protects you from winter bill spikes.

Step 4: Account for Seasonal Variation

Utilities-included rentals smooth seasonal costs; separate-pay units do not. Winter heating bills can be several times higher than summer bills.

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Step 5: Consider Your Usage Patterns

Utilities-included rentals suit you if you work long hours away, value budget predictability, or prefer short leases.

Red Flags in Utilities-Included Agreements

• Landlord cannot specify which utilities are included or provides vague answers.

• Rent is significantly higher than comparable units with no clear utility cost justification.

• Lease allows landlord to charge extra if usage exceeds a threshold.

• Landlord refuses to provide utility cost estimates.

• Building lacks energy-efficient features (old windows, outdated heating) despite utilities being included.

Best Practices for Utilities-Included Rentals

• Get it in writing: Ensure the lease specifies which utilities are included and for how long.

• Ask about rate increases: Confirm whether rent will increase if utility rates rise.

• Verify efficiency investments: Ask about recent upgrades (furnace, windows, insulation).

• Understand the thermostat: Ask how to adjust temperature and what typical winter temperatures are.

• Document the unit's condition: Take photos of drafts, cold spots, or heating issues before moving in.

Utilities-included rentals can be excellent if the total monthly cost is competitive and the building is energy-efficient.

Heating Systems and Winter Comfort in Energy-Efficient Units

Heating is your largest energy expense in Toronto winters. The heating system type determines both comfort and cost.

Hydronic Heating (Hot-Water Systems) Hydronic systems use a central boiler to heat water flowing through pipes to radiators or baseboard heaters. Modern systems are efficient and allow individual room control; older ones waste heat through poorly insulated pipes.

Forced-Air Heating Furnaces heat air and distribute it through ductwork, responding quickly and heating evenly. Standard in newer buildings, efficient furnaces have high AFUE ratings (Annual Fuel Utilization Efficiency).

Heat Pumps Heat pumps extract warmth from outside air and move it indoors. They work well for shoulder seasons but may need supplemental heating in deep winter. Increasingly common in new rentals because they also provide cooling.

Thermostat Control The thermostat makes the biggest difference in comfort and cost. Programmable or smart thermostats let you lower temperature at night and when you're away. Manual thermostats require discipline but work fine if you're consistent.

Ask your landlord about the heating system type and thermostat features during your tour. Smart thermostats allow immediate optimization; older manual thermostats require learning and gradual adjustment.

How to Verify Energy Performance Before Signing a Lease

Before committing to energy-efficient rental units, gather concrete information about their energy performance and estimated monthly costs.

Request and Interpret Utility Bills

When you receive the bills, look for:

• Heating costs: Winter months (November-March) show highest usage. Compare January bills between similar units; a large gap usually points to insulation or window problems.

• Electricity costs: Summer months reveal cooling load. Compare July usage in kWh; unusually high summer use points to a heavy cooling load.

• Water costs: Older fixtures and leaks show up as higher water use.

• Year-over-year trends: Rising bills signal poor insulation or aging systems.

If the landlord cannot provide actual bills, ask for an estimate based on the building's energy audit (see below).

Check for EnerGuide Certification and Energy Audits

EnerGuide is Natural Resources Canada's home energy rating. The rating is shown in gigajoules per year (GJ/year): the lower the number, the less energy the home is rated to use. Our 50 Castleton Avenue property, for example, is rated 27 GJ/year.

Ask if the building has EnerGuide certification and request the rating report, which identifies specific inefficiencies and recommends upgrades.

Research Building Age and Construction Standards

Building age is a rough guide, though renovations matter more:

• Pre-1980: Single-pane windows, minimal insulation, older heating. Expect high costs unless major renovations occurred.

• 1980-2000: Mixed performance; partially upgraded but poor wall/attic insulation.

• 2000-2010: Meet Ontario Building Code; efficient heating but modest insulation.

• 2010-2015: High-efficiency furnaces, double-pane windows, improved air sealing standard.

• 2015+: Often exceed code; heat pumps, triple-pane windows, continuous insulation increasingly standard.

Ask when the building was constructed and whether major systems have been upgraded.

Calculate Total Monthly Housing Cost

Compare total monthly cost, rent plus utilities, across units. Use the same method as the Unit A and Unit B example above.

Visit During Different Weather Conditions

Tour the unit on a cold day (ideally below 0°C) and again on a warm day (above 25°C) if possible.

During a winter visit: Feel walls, windows, and doors for drafts. Check if heating keeps up or if rooms stay cold.

During a summer visit: Assess natural ventilation and air conditioning efficiency. Notice exterior shading (trees, overhangs, blinds) that reduces solar heat gain.

Talk to Current Tenants

If possible, speak with residents.

Request a Building Energy Audit Report

Some landlords have commissioned professional energy audits from certified auditors.

Red Flags to Watch For

• Landlord refuses to provide utility bills or estimates.

• Unit has single-pane windows with no upgrade plans.

• Heating system is over 20 years old and not recently serviced.

• Building lacks attic or basement rim insulation.

• Landlord cannot explain heating system type or thermostat operation.

• Utility bills show sharp year-over-year increases with no explanation.

These steps help you make informed decisions grounded in data. Verify the numbers before committing.

Frequently Asked Questions

What makes a rental apartment energy-efficient?

Energy-efficient rental apartments combine several key features: proper insulation in walls and attics, high-performance windows that reduce heat loss, efficient heating systems (such as hydronic or hot-water radiators), Energy Star-certified appliances, and water-efficient fixtures. The building design itself matters too—modern construction often includes better air sealing and ventilation systems. Older buildings can still be energy-efficient if they've been retrofitted with these upgrades. Look for units certified under EnerGuide or similar standards, which measure overall energy consumption.

How can I tell if an apartment has good insulation and efficient windows?

During a viewing, check for these signs: windows should feel solid with no drafts when you move your hand around the frame, and they may be double or triple-glazed (you'll see multiple panes). Ask the landlord about insulation in the walls and roof—newer buildings typically have thicker insulation. Feel the walls to see if they're cold in winter, which signals poor insulation. Ask whether the building has been recently renovated or retrofitted. Ask for average monthly costs or anonymized past bills, which show real consumption patterns.

Which energy-efficient features can help reduce utility costs in a rental?

The biggest cost reductions come from efficient heating systems and good insulation, which together account for most residential energy use in colder climates. Energy Star appliances (especially refrigerators, washers, and dryers) lower electricity consumption. Water-efficient fixtures reduce both water and heating costs. Proper window sealing and weatherstripping prevent drafts. Building design that maximizes natural light reduces daytime lighting needs. When combined, these features can contribute to lower monthly utility bills—the exact impact depends on your usage habits and local utility rates.

What should I ask a landlord about heating and electricity costs?

Ask directly: What are the average monthly heating and electricity costs for a similar unit? Are utilities included in the rent, or are they billed separately? What is the heating system type and age? Has the building undergone recent energy efficiency upgrades? Request actual utility bills from the previous tenant (anonymized) to see real consumption patterns. Ask about the building's insulation and window specifications. Understanding these details upfront helps you budget accurately and avoid surprises on your first utility bill.

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Disclaimer: This article is for general information only and is not legal, tax, financial or professional advice. It was written with the help of AI tools and reviewed by our team, but it may contain errors, and laws, prices and company policies change. Information about other companies is based on what was publicly available at the time of writing; contact them directly for their current terms. Before making decisions, check official sources such as the Landlord and Tenant Board or speak with a qualified professional. FoxySuites rental terms, pricing and availability are set out in your lease agreement and may change.