Central Heating Cost Allocation in Divided Co-ownership: Sub-Meters

In Quebec, several syndicates manage a shared central heating system in a divided co-ownership. The key question remains: how can this cost be allocated legally, fairly and transparently among co-owners? If your building is considering installing sub-meters or reviewing its calculation method, this article guides you step by step.

We cover central heating cost allocation in Quebec divided co-ownership with sub-meters, the framework established by the Civil Code of Quebec, recognized technical options, and the practical steps for deciding on, implementing and communicating changes to the board of directors and co-owners.

Why central heating cost allocation is often disputed

• Usage varies: north-facing exposure, top or bottom floors, varying occupancy and renovations (windows, insulation) create differences in consumption.
• Systems differ: hot water, steam, forced air, electric or mixed systems; some also serve common portions.
• Co-ownership documents: the declaration of co-ownership and the by-laws of the immovable may provide for an allocation method that no longer reflects current realities.

As a result, some co-owners pay “too much” or “not enough” compared with their actual consumption. The board of directors must balance fairness, legality and simplicity while protecting the budget, common expenses and the long-term viability of the contingency fund.

The legal framework in Quebec: declaration of co-ownership, Civil Code of Quebec and decisions at meetings

In Quebec, the starting point is the declaration of co-ownership. Unless otherwise stipulated, each co-owner contributes to the common expenses according to the relative value of their fraction (proportionate share), as provided by the Civil Code of Quebec (see section 1064 C.C.Q.). In practice, this means that, without a specific clause, central heating is often allocated according to the proportionate share.

• Contrary stipulation permitted: the declaration of co-ownership may provide for a different allocation of certain expenses, particularly heating energy.
• Amendment: if the desired method is not provided for, the declaration of co-ownership must be amended. The applicable majorities depend on the nature of the amended clause (constituting act versus by-laws), under sections 1096 to 1102 C.C.Q. (current as at 2026-06-16). Do not improvise: have a legal adviser validate the strategy.
• Democratic process: clearly include the proposal in the notice of meeting, present it at the annual general meeting, and record the decision in the minutes, along with the adopted allocation method and its effective date.

Useful references:

• LégisQuébec – Civil Code of Quebec, section 1064 (common expenses)
• LégisQuébec – Civil Code of Quebec, sections 1096 et seq. (majorities; amendments to the declaration)
• LégisQuébec – Civil Code of Quebec, section 1072 (contingency fund – useful for assets such as a boiler)

Allocation methods: legal options and implications

Here are the approaches most commonly encountered. The choice must balance fairness, simplicity, implementation costs and compliance with the declaration of co-ownership.

• Proportionate share (relative value): simple to apply; promotes budgetary stability. It may be perceived as unfair if usage varies significantly.
• Thermal sub-meters (energy/Btu or kWh): billing based on actual consumption for each fraction. Requires installation, maintenance and periodic readings.
• Heat allocators on radiators: estimate the relative share for each appliance; less precise than a global sub-meter for the loop.
• Mixed method: fixed base (proportionate share) + variable component (consumption). Useful for covering common-portion losses and guaranteeing a minimum.

Good practices recognized in the co-ownership sector: consult guides from the RGCQ and have the method validated by a professional.

Installing sub-meters: practical steps and compliance

If you choose sub-meters, a structured process reduces technical, financial and legal risks.

1. Technical and financial analysis
   • Energy assessment: system type (hot water, steam, air), whether measurement by unit is possible, access to risers, and losses in common portions.
   • Scenarios: sub-meters by unit, by riser or heat allocators; purchase, installation and reading costs versus anticipated savings.
   • Budget impacts: provide for meter maintenance, readings and a replacement fund, separate from the contingency fund (the boiler and loops remain common assets to be planned through the EUC/maintenance logbook).
2. Compliance, documents and vote
   • Draft the allocation method: specify the fixed component (if applicable), the variable component, the reading frequency and the treatment of vacant units.
   • Obtain legal validation: determine whether an amendment to the constituting act of the declaration of co-ownership or to the by-laws is required. Refer to the majorities under sections 1096 to 1102 C.C.Q. (current as at 2026-06-16). Avoid including ambiguous clauses.
   • Meeting notice and annual general meeting: present the study, the proposal and the impacts on the common expenses. Document the matter in the minutes.
3. Work and RBQ compliance
   • Select a contractor holding the appropriate licence (e.g., electrical or instrumentation). See the RBQ for licence and work compliance requirements.
   • Installation, seals and calibration: require calibration certificates, a commissioning protocol and a maintenance plan.
   • Failure policy: define what to do if a sub-meter is defective (temporary substitute method: historical average, increased proportionate share, etc.). Specify this in the declaration of co-ownership/by-laws.
4. Operations and billing
   • Periodic readings: quarterly or monthly, with anomaly checks.
   • Internal billing: separate lines for the heating component, distinct from other common expenses; apply the adopted method.
   • Privacy protection: consumption data by unit is sensitive; limit access, disclose aggregated totals where appropriate, and comply with your confidentiality obligations.

To structure these steps, see our financial management and administrative management services. Professional support reduces the risk of errors.

Governance, budget and ongoing communication

• Forecast budget: distinguish the heating “energy” expense (variable) from the common system maintenance and repair costs (participants in the contingency fund according to their proportionate share, see section 1072 C.C.Q.).
• Transition period: consider a gradual rollout (e.g., year 1 mixed, year 2 100% variable) to soften sharp fluctuations.
• Transparency: publish a summary of the method, effective dates and a numerical example in the minutes. Direct co-owners to the Packages section and the Blog for resources.
• Disputes: document a clear process (deadlines, form and technical verification) for handling verification requests.
• Common portions versus private portions: remind co-owners that the central network and boiler are common portions; appliances inside units may be common portions for restricted use, depending on the declaration of co-ownership. The allocation method must reflect this.

FAQ – central heating and sub-meters in condos

Can the allocation method be changed without amending the declaration of co-ownership?

Often not. If the declaration of co-ownership provides for allocation according to the proportionate share for all expenses, switching to consumption-based billing requires an amendment. The proper process is a study, notice, annual general meeting and the votes required by the C.C.Q. (see section 1096 et seq.). Avoid informal “policies” that are not supported by the declaration.

What should be done if a sub-meter is defective?

Provide for a substitute rule: for example, apply the unit’s historical average or a proportionate-share method for the period concerned, then make an adjustment after the repair. Include the procedure in the by-laws of the immovable and keep the reading records.

Is a fixed component mandatory?

No, but it is useful. A fixed component (e.g., 20–40%) covers network losses and heating for common portions. The remainder follows measured consumption. Clearly define this percentage and how it may be reviewed in the declaration of co-ownership to avoid ambiguity.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

This article provides general information and does not replace advice from a tax specialist or accountant. Refer to Revenu Quebec and the CRA for the exact rules.

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