Commercial Tenant Rights in Ontario

Key Differences from Residential Tenancy Law

• No rent control — rent can be any amount agreed in the lease.
• No standard lease form — parties negotiate every term.
• No LTB — disputes go to the Ontario Superior Court or Small Claims Court.
• Landlords can distrain (seize goods) for unpaid rent in some circumstances.
• Eviction can be faster — as little as 16 days' notice for non-payment.

Landlord's Right to Distrain

Under the Commercial Tenancies Act, a commercial landlord can seize the tenant's goods on the premises to recover up to 6 months' arrears — without going to court. This right of distress is powerful and can be exercised quickly. Tenants should be aware of this risk if they fall behind on rent.

Eviction for Non-Payment

A commercial landlord must give Notice to Terminate for non-payment. The standard notice period under the Act is 16 days. If the tenant does not pay within that time, the landlord can:

• Re-enter and take possession (if the lease allows it), or
• Bring an application in court for possession.

Tenant Protections in Commercial Leases

Tenants should negotiate these protections into the lease before signing:

• Quiet enjoyment clause — landlord cannot interfere with your business operations.
• Renewal options — right to renew at a set or formula-based rent.
• Assignment/subletting rights — ability to transfer the lease if you sell your business.
• Personal guarantee limitations — cap or exclude personal liability for the lease.
• Exclusivity clause — landlord cannot lease to a competing business in the same plaza.
• Gross vs. net lease clarity — who pays taxes, insurance, and maintenance (CAM charges).

Disputing a Commercial Landlord

Commercial tenants generally cannot go to the LTB. Options include:

• Negotiation and mediation.
• Small Claims Court (up to $35,000).
• Ontario Superior Court for larger amounts or injunctions.