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What law applies to commercial tenancies?

Region: Ontario Answer # 447

Unlike residential tenancies, the law governing commercial leases generally treats landlords and tenants as equals, without giving tenants any additional protective rights. Although there are guidelines in place under the Commercial Tenancies Act, commercial landlords and tenants normally enter into a formal written agreement.

Generally, most commercial landlords and tenants enter into a formal written agreement, which follows a standard format, and includes basic issues, such as:

If a landlord or tenant breaches the lease, they can be sued, and one remedy for a landlord when a tenant breaches a lease is for the landlord to have the tenant’s property confiscated and sold. The sale proceeds are then applied against the outstanding amounts owed to the landlord under the lease.

Before entering into a commercial lease, the parties usually consult their respective lawyers for many reasons, including:

  • commercial leases are generally complex
  • the costs associated with a lease are often a significant part of a business’s operating budget
  • leases often require the tenant to give personal guarantees
  • in many cases, the location of a business can be vital to its success.

For more information, refer to other sections of Legal Line or consult a business lawyer.

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

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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Pardon Partners – Landlord ONPardon Partners – Landlord ON


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