Ontario Commercial Eviction Process: Lock Changes & Court

Commercial evictions in Ontario operate under a very different framework than residential evictions. The Commercial Tenancies Act (CTA), effective since 31 December 1990, provides landlords with powerful self-help remedies — including the ability to change locks on the 17th day of rent arrears under s. 18(1) — that are unavailable in residential tenancies.

Commercial vs. Residential Eviction

Remedy 1: Re-Entry (Lock Change on Day 17)

The most powerful remedy available to commercial landlords for non-payment of rent:

How It Works

1. Rent becomes due on the date specified in the lease (typically the 1st of the month)
2. If rent remains unpaid for 15 full days, the landlord may act on day 17 (as 15 full days of arrears must pass after the due date)
3. On day 17, the landlord may change the locks and effectively terminate the tenancy
4. No court order is required — this is a statutory self-help remedy
5. The landlord must make the tenant's property accessible for retrieval

Important Considerations

• This remedy only applies to non-payment of rent — not other lease breaches
• The landlord cannot exercise re-entry and distress at the same time; changing locks to exclude the tenant renders any simultaneous or subsequent distress unlawful
• The tenant may apply to the court for relief from forfeiture (asking the court to reinstate the lease)
• The landlord should have a legal opinion before proceeding to ensure proper execution

Remedy 2: Distress (Seizing Tenant's Property)

An alternative remedy for unpaid rent:

Limitations on Distress

• Cannot seize goods that are exempt under s. 30(1) of the CTA, including: bedding, ordinary apparel, one cook stove, fuel and food for 30 days, and tools of the tenant's trade to a value of $600.
• Generally restricted to the tenant's property, but exceptions apply under s. 31(2) for goods claimed by certain relatives (spouse, children, in-laws), persons who derived title from the tenant, or where the tenant has an equity interest.
• Cannot pursue both re-entry and distress simultaneously — must choose one
• Must follow strict procedural requirements (improper distress can lead to a lawsuit)

Remedy 3: Superior Court Application

For lease breaches other than non-payment (or when a more formal process is preferred):

Process

1. Serve the tenant with notice of breach and a reasonable time to remedy
2. If the breach is not remedied, file an application with the Superior Court of Justice
3. The court may schedule a hearing and ultimately grant an eviction order
4. A writ of possession is issued and enforced by the Sheriff's office (current fee is $210 plus enforcement deposits)

Typical Court Timelines

Relief from Forfeiture

A critical tenant defence: even after a landlord exercises re-entry, the tenant may apply to the court for relief from forfeiture:

• The court may reinstate the lease if the tenant pays all arrears and costs
• The court considers whether the tenant's breach was minor or the forfeiture is disproportionate
• This is a discretionary remedy — the court is not obligated to grant it
• Tenants must act promptly after the re-entry to seek relief

Lease-Specific Remedies

Many commercial leases include additional remedies beyond the CTA:

• Accelerated rent — While leases may claim all remaining rent is due immediately, this is subject to the landlord's duty to mitigate and is capped at three months in cases of tenant bankruptcy or insolvency (s. 2(3)).
• Indemnity clauses — Tenant must compensate the landlord for all costs of re-letting
• Default interest — Higher interest rate on unpaid amounts after default
• Waiver of relief from forfeiture — Some leases attempt to waive the tenant's right, though courts may not enforce this

Best Practices for Ontario Commercial Landlords

1. Document rent arrears carefully — Keep detailed records of payment dates and amounts
2. Consult a lawyer before exercising self-help — Improper re-entry or distress leads to liability
3. Send a demand letter first — Even though not always required, it demonstrates good faith
4. Act promptly — Delayed enforcement may be seen as waiver of the breach
5. Photograph the premises — Before and during any re-entry process
6. Secure the tenant's property — Make it available for retrieval to avoid conversion claims

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How Landager Helps

Operating in Ontario's commercial rental market requires strict adherence to lease terms and the Commercial Tenancies Act. Landager simplifies Ontario commercial property management by centralizing custom lease agreements, tracking rent arrears for the 17-day re-entry window, and maintaining detailed logs of maintenance and property standards compliance. Whether you are managing industrial units in Mississauga or retail spaces in Toronto, Landager provides the structural framework and record-keeping tools necessary to navigate the CTA with confidence and mitigate the risks of costly legal disputes.