Commercial Tenant Rights in Ontario

Commercial Tenancy Law: A Different World from Residential

Commercial tenants in Ontario operate under a completely different legal framework than residential tenants. There is no Landlord and Tenant Board for commercial tenants, no rent control, and significantly fewer statutory protections. Commercial leases are governed primarily by the common law, Ontario's Commercial Tenancies Act, and the terms of the lease itself.

Default and Eviction in Commercial Tenancy

If a commercial tenant defaults (typically by failing to pay rent), the commercial landlord has several remedies:

• Termination and re-entry: The landlord can terminate the lease for a breach of a condition and physically re-enter the premises. Commercial tenants do not have the same protection against re-entry as residential tenants.
• Distress (Distraint): Ontario's Commercial Tenancies Act preserves the common law remedy of distress — the right of a commercial landlord to seize and sell the tenant's goods on the premises to satisfy unpaid rent.
• Damages: The landlord can sue the tenant (and any personal guarantors) for unpaid rent and losses from the breach.

Tenant Protections Under the Commercial Tenancies Act

The Commercial Tenancies Act provides some tenant protections, including: the right to challenge distraint if it is improper, protection against re-entry without proper notice for breaches of covenant (as opposed to conditions), and limits on how quickly a landlord can act after default in some circumstances.

What to Do If Your Landlord Is Acting Improperly

• Do not abandon the premises — this may relieve the landlord of their duty to mitigate
• Review your lease carefully for notice provisions and cure periods
• Consult a commercial litigation lawyer immediately if you receive a demand letter or notice of termination