A guide to commercial tenant rights

Are you a business owner who wants to enter into a lease contract or rental agreement? Or are you already bound by an existing contract or agreement? In either case, it’s important to know your rights as a commercial tenant under Canadian laws.

What are the laws on commercial tenant rights in Canada?

Commercial tenancy laws in Canada are under the jurisdiction of the provinces and territories. This means that each province or territory has its own statute or law on commercial tenant rights.

To fully understand these laws, let us first define commercial tenancy and how it differs from residential tenancy.

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Commercial tenancy

Commercial tenancy is a contract or legal agreement between a landlord (the lessor or the property owner) and a tenant (the lessee or the renter).

This contract or agreement is about the use or rental of a certain space or property for commercial uses, subject to certain fees (also called rental fees or lease payments).

Commercial uses may include using the property or space to put up an office, retail store, warehouse, or for any other business purposes.

Commercial vs. Residential

In Canada, commercial tenancy and residential tenancy differ since they are governed by separate laws. This means there are different provincial laws about residential leases or tenancy.

For example, in Ontario, commercial tenancy falls under the Commercial Tenancies Act. Residential tenancy, meanwhile, is covered under the Residential Tenancies Act and the Protecting Tenants and Strengthening Community Housing Act.

Residential tenant rights also differ from commercial tenant rights.

Provincial laws on commercial tenancy

In addition to common law, commercial tenant rights are also regulated by provincial statutes. Some provinces or territory in Canada have its own laws on tenancy, whether they’re commercial or residential in nature.

Here is a list of commercial tenancy laws of each province or territory:

• Ontario: Commercial Tenancies Act
• British Columbia: Commercial Tenancy Act
• Yukon: Commercial Landlord and Tenant Act
• Saskatchewan: Landlord and Tenant Act

In Québec, the Civil Code applies.

For other provinces or territories that do not have their own commercial tenancy laws, the rights of commercial tenants will be based on common law on contracts.

What are the rights of commercial tenants in Canada?

Commercial tenant rights in Canada may be outlined in the lease agreement/contract or in these provincial commercial tenancy laws.

Contractual rights

Contracts are the heart of commercial tenancies. They outline the rights and obligations of the parties to such a contract.

Your commercial lease agreement with your landlord may take precedence over the applicable provincial or territorial commercial tenancy law. The terms and conditions must not be illegal or criminal in nature.

As a tenant, you must fully understand your rights as stated in your contract or agreement. If there are any provisions that are unclear, ask your landlord or your property leasing lawyer.

Terms of a contract

Here are some of the terms and conditions of a commercial lease that you must look at to protect your commercial tenant rights:

• Rent or Lease: the amount of rent or lease to be paid must be specified in the contract. This must also include when and how this amount should be paid. The rules on rent increases and the notices required before implementing such increases must also be spelled out in the contract.
• Period: the contract must include its term or length, including the conditions for renewing or ending the lease. Any conditions that may allow you or your landlord to prematurely terminate the contract must also be specified.
• Other conditions: this may refer to security deposits, insurance, repairs and maintenance, and other prohibitions as to the use of the space or property.

Missed or due lease

The law on commercial tenancy defines rights of the landlord and tenant in case of late or unpaid lease or rent.

In Ontario, for example, your landlord may choose any of these options:

1. Eviction: To change the locks on the 16th day after the day when the rent or lease was due. Here, prior notice is not necessary, and the tenancy will end once the locks are changed.
2. Distress: To seize your property that is found within the leased premises and sell it to cover the unpaid rent or lease. Here, prior notice may be required if your commercial lease contract says so.

Your landlord cannot change the locks and seize your property. They can only choose one option.

Watch this video to learn more about these options:

Learn more about commercial tenant rights by contacting a property leasing lawyer in your area. For instance, if you’re from Vancouver and want to learn more about the Commercial Tenancy Act, reach out to any of the Lexpert-Ranked best property leasing lawyers in British Columbia.

Termination of lease

Under provincial or territorial laws, commercial tenant rights include the right to due notice before a lease agreement may be terminated. This will also depend on the type of lease agreement:

• Month-to-month: you or your landlord must give written notice at least one month in advance.
• Fixed-term lease: no written notice needed, since the fixed term is the basis for the lease termination.

Your commercial lease contract may also state any notice requirement as you or your landlord may deem sufficient.

What are violations under the Canadian laws on commercial tenancy?

Here are some of the examples of violations of commercial tenant rights in Canada:

• Breach of any term or condition in the commercial lease contract
• Terminating the contract without any prior notice or for any reason that is not in the contract

When any of your rights have been violated, consult with your lawyer right away. The action you can take against your landlord may depend on your case and the circumstances that led to such violation.

To know more about commercial tenant rights in Canada, consult with the best property leasing lawyers in Canada as ranked by Lexpert.