Ontario commercial landlords · Free one-page summary

Renting out a plaza, storefront or office in Ontario

Commercial space doesn't follow the residential rules. Five things every Ontario commercial landlord should know, from the Commercial Tenancies Act, the CRA and the Interest Act. Each point links to a full guide.

1. Which law applies

   The Commercial Tenancies Act and your lease, not the LTB

   The Landlord and Tenant Board doesn't hear commercial disputes: claims under $50,000 go to Small Claims Court; larger claims go to the Superior Court of Justice. There is no rent control and no standard commercial lease: what matters is what your own lease says.

   Full guide

2. Unpaid rent

   Re-entry after 15 days, or distress, never both

   Unless the lease says otherwise, a landlord may re-enter the premises once rent has been unpaid for 15 days (due January 1: locks may be changed on January 17). Instead, the landlord may seize and sell the tenant's property, but can't do both for the same unpaid rent. Get legal advice before you act.

   Full guide

3. GST/HST

   13% HST on commercial rent, including TMI and CAM

   Commercial rent is subject to GST/HST: in Ontario, 13% HST. TMI and CAM (operating and maintenance costs the tenant reimburses that would otherwise be part of the rent) are generally taxable, the same as the base rent, unless a specific charge is really a separate supply.

   Full guide

4. Interest on late rent

   State a yearly rate, or it's capped at 5%

   If the lease charges interest at a rate per month (or any period under a year), the federal Interest Act limits it to 5% a year unless the lease also states the equivalent yearly rate.

   Full guide

5. Automanagement

   Commercial units alongside residential ones

   Business tenants (business name, BN, GST/HST number); GST/HST added to commercial rent charges and shown on receipts; base rent, TMI/CAM and rent steps; reminders before a renewal-notice deadline; the signed lease kept with the lease record.

   Full guide