What You Need to Know About Commercial Tenancies in Ontario
2.5 min read
There is a lot to consider when looking to rent commercial property in Ontario. Luckily, Ontario’s Commercial Tenancies Act (CTA) outlines the relationship, rights and obligations between commercial landlords and tenants.
If you or your client are looking to enter a commercial lease agreement or lease their commercial property to a potential tenant, you have come to the right place. We’re sharing what you need to know below.
Commercial Lease Agreements
Unlike residential lease agreements, there is not one standard commercial lease since every business is different. However, there are various things commercial leases typically include:
The rent amount, including rules for rent increases and notice requirements
The initial deposit amount
The length and type of tenancy
Tenant insurance requirements
Tenant repair and maintenance obligations
Requirements for renewing or ending the lease
Other relevant business details
Before committing to a commercial lease, be sure to consider that the space offers everything you need to run your business successfully. Speaking with a CRE lawyer can be helpful when determining if the property is the right fit for you.
Types of Commercial Leases
All rules of a commercial lease must be followed, even if they differ from those in the CTA. Commercial tenancies are either month-to-month or fixed-term. Month-to-month tenancies require landlords or tenants to provide one month’s notice before terminating the lease, whereas a fixed-term lease requires no notice to end the lease.
Rules
It is important to remember that the terms of a commercial lease agreement often precede the Commercial Tenancies Act. The provincial government does not get involved in commercial landlord and tenant disagreements. Minor legal disputes regarding money or personal property between landlords and tenants can be brought before Small Claims Court. All claims over $35,000 must be brought before the Superior Court of Justice.
Understanding all areas of a commercial lease agreement will help make the tenancy as smooth as possible for both the landlord and tenant.
Reference
Renting commercial property in Ontario. ontario.ca. (n.d.). Retrieved June 15, 2022, from https://www.ontario.ca/page/renting-commercial-property-ontario
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