There are two different types of tenancies – residential and commercial. Consequently, there are different laws and different institutions dealing with all rental matters. The owner of a rental property is called the lessor or landlord, and the other person is called the lessee or tenant. A lease may be:
Because ownership is retained by the lessor, he or she always has the better right to enforce all the contractual terms and conditions affecting the use of the commercial property. Normally, the contract sets out in full and, hopefully, plain language, all these terms and conditions. One important right that may or may not be allowed the lessee, is the ability to create a sublease or to assign the lease, i.e. to transfer control to a third party.
Current information on renting commercial properties in Ontario can be found on the Ontario Ministry of Municipal Affairs and Housing website – Renting Commercial Property in Ontario. Should commercial tenants or landlords have any inquiries related to commercial tenants, they may contact the Ministry using their website or by telephone at 416-585-7041 or toll-free TTY at 1-866-220-2290.
If there is any question about whether a tenancy is residential or commercial, the Landlord and Tenant Board will hold a hearing and make a decision. Either the landlord or the tenant may apply to the Board. The Board can be reached by calling 1-888-332-3234 or 416-645-8080 in the Toronto area.
Many commercial leases have terms and conditions that govern the commercial landlord and tenant relationship despite the provisions of the Commercial Tenancies Act. It is recommended that you seek legal advice on how the Commercial Tenancies Act applies to your specific situation.
This law does NOT apply to residential tenants and landlords. It is about commercial tenancies only. For residential landlord / tenant issues, please visit the Landlord and Tenant Board’s website or phone (416) 645-8080 or 1-888-332-3234 (toll-free).
Ontario’s Commercial Tenancies Act (the Act) outlines the relationship, rights and obligations between commercial landlords and tenants. The following information broadly outlines the most frequently asked questions about the Act.
Whether you are a commercial tenant, sub-tenant or landlord, it is strongly recommended that you obtain legal advice to assist you with interpreting how the Commercial Tenancies Act applies to your specific situation. The Law Society of Upper Canada provides a nominal fee referral service that can put you in touch with an appropriate lawyer in your community. The Law Society of Upper Canada can be contacted at: 1-900-565-4577
It is important to be aware that a signed lease agreement may take precedence over the Commercial Tenancies Act. Typically a lease agreement sets out the specific obligations for both commercial landlords and tenants such as rent, maintenance, operating costs, leasehold improvements, and other matters. Both landlords and tenants should carefully read their lease agreement as the majority of leases have terms and conditions that spell out the obligations of each party.
