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Eviction of commercial tenants

Region: Ontario Answer # 449

Most commercial leases state the reasons why and how a landlord can evict a commercial tenant. In almost all leases, a landlord is entitled to evict a tenant for non-payment of rent or for a material breach of the terms of the lease.

Eviction for non-payment of rent

If a tenant fails to pay rent, a landlord has two options under the Commercial Tenancies Act. First, the landlord is entitled to “re-enter” the premises, which usually includes changing the locks and preventing the tenant from using the premises any longer. To change the locks, the landlord is required to wait 16 days after the rent was due.

Second, the landlord can re-enter the premises, without notice, to seize and sell the tenant’s property. Before selling the tenant’s property, the landlord must give the tenant five days’ notice.

Unless the lease requires the landlord to give the tenant notice, the landlord may be able to terminate the lease and evict the tenant if the tenant does not pay the rent on time.

Eviction for a material breach of the lease

A commercial lease may also contain other obligations that the tenant is responsible for. If the tenant does not perform such obligations, or conversely, does something that is strictly prohibited in the lease, the landlord may be able to terminate the tenancy and take over the premises but must do so in compliance with the Commercial Tenancies Act.

It is not always clear whether the lease has been breached. In some cases the landlord may apply to a court to have a judge decide if the tenant has breached the lease, and if so, to have the lease terminated. If a landlord applies to court, the tenant will be given the opportunity to appear at trial to argue their side.

For additional information on commercial tenancies, visit the Ministry of Municipal Affairs and Housing.

If you are a commercial tenant and your landlord wants to evict you or take you to court, you should consult a lawyer.

Help for tenants

A criminal record will affect your ability to be approved for a commercial lease. To erase your criminal record, learn more at Pardon Partners. It’s easier than you think.

If you are having financial problems, it may be difficult to rent an apartment or condominium. You can get help to clear your debt and repair your credit. For easy-to-understand debt solutions on your terms, contact our preferred experts 4Pillars and rebuild your financial future. With 60 locations across Canada, they will help you design a debt repayment plan and guide you with compassionate advice. No judgment. For help, visit 4Pillars or call toll-free 1-844-888-0442 .

If you are a tenant, you can add your monthly rent payment to your credit report using FrontLobby . This can:

  • Improve your credit score on average 33pts to 84pts
  • Build good credit faster with a new rent tradeline
  • Unlock credit rewards (better bank loans, credit cards, mortgage rates)

Help for landlords

For legal advice and assistance with a residential tenancy and applications to the Landlord and Tenant Board, contact our preferred Landlord and Tenant experts Nicola (Nick) Giannantonio Legal Services .

If you are a landlord, you can pull tenant credit reports and report monthly rent payments to the credit bureaus using FrontLobby . This helps you:

  • Attract, screen and reward great tenants
  • Ensure rent is paid on-time, every month
  • Recover debts from unpaid rent

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