Commercial Real Estate - Protecting Landlords

Presvelos Law LLP frequently represents commercial landlords in lease disputes with tenants. We can help you with the following legal issues:

 

  • Non-payment of rent or additional rent, including “TMI” (taxes, maintenance and insurance).

  • Non-rent commercial lease breaches.

  • Tenant overholding in your commercial unit.

  • Defending against Relief from Forfeiture Applications.

 

We provide practical and proactive advice to resolve commercial lease disputes without unnecessary litigation in court.

 

Overview of Commercial Landlord Rights and Remedies

i. Non-Payment of Rent

Generally, where a commercial tenant has defaulted on its rent, a landlord may: (a) terminate its commercial lease agreement or (b) continue its commercial lease agreement and sue for rent arrears or (c) distress on the tenant’s goods which can be sold to pay off its rent owing, but continue with the lease.

 

However, the starting point for responding to a non-payment of rent is to review the terms of your commercial lease agreement. Your lease agreement will likely indicate how many days past due will the non-payment of rent amount to a breach of your lease agreement. If your commercial lease agreement does not specify how many days you need to wait until the non-payment of rent amounts to a default under your lease agreement, the Commercial Tenancies Act requires that the rent be unpaid for 15 days before landlords can terminate their lease.

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COVID-19 Effect on Commercial Tenancies

 

To find specific information about the impact of COVID-19 on commercial tenancies see our article here.

II. Breach of Non-Monetary Term

If a commercial tenant has breached a term of the lease agreement, other than the non-payment of rent, you must be very cautious in how you respond. Again, look to the terms of your commercial lease agreement which should tell you:

(a) what notice you are required to give your tenants regarding the breach; and

 

(b) how long the breach can continue until you can treat it as a default under your lease agreement.

 

It is extremely important to give your tenant swift and adequate notice of its specific breach(es) under the commercial lease.  

 

If you are considering terminating your lease with the tenant, the Commercial Tenancies Act requires landlords to give tenants a reasonable amount of time to cure the default and comply with what is required under the commercial lease.   

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