Ontario Commercial Maintenance: Landlord & Tenant Responsibilities

Commercial maintenance obligations in Ontario are determined almost entirely by the lease agreement. Unlike residential tenancies where the RTA imposes broad landlord maintenance duties, the Commercial Tenancies Act (CTA), R.S.O. 1990, c. L.7 provides no default maintenance or repair obligations for landlords. All such duties must be established within the written lease agreement.

How Maintenance Responsibilities Are Allocated

The allocation depends heavily on the lease type:

If a lease is silent on maintenance, Section 30 of the Conveyancing and Law of Property Act, R.S.O. 1990, c. C.34 creates an implied covenant that the tenant will keep the premises in "good and tenantable repair."

Landlord's Typical Maintenance Obligations

Even in NNN leases, landlords typically retain responsibility for:

Structural Elements

• Foundation and footings
• Load-bearing walls and columns
• Roof structure (not always the roof membrane/covering)
• Building envelope (exterior walls, structural components)

Base Building Systems

• HVAC core systems (major plant equipment, not tenant-specific units)
• Elevators and escalators
• Life safety systems (fire alarm, sprinkler systems, emergency lighting)
• Main electrical and plumbing risers

Common Areas

• Lobbies and corridors (cleaning, lighting, repairs)
• Parking lots and structures (paving, lighting, snow removal)
• Landscaping (grounds maintenance)
• Washrooms (if shared/common area)

Tenant's Typical Maintenance Obligations

Interior Maintenance

• Interior walls, floors, and ceilings within the leased premises
• Tenant-installed fixtures and improvements
• Interior lighting (bulbs, ballasts, fixtures)
• Interior doors and hardware
• Interior painting and decorating

Systems Within the Premises

• Tenant-specific HVAC units (rooftop units serving only their space)
• Plumbing fixtures within the premises
• Electrical panels and wiring within the premises
• Kitchen/washroom facilities within the premises

Specialized Equipment

• Grease traps (restaurant tenants)
• Exhaust systems (restaurant, industrial)
• Specialized electrical (data centres, laboratories)
• Signage (installation, maintenance, and removal)

Maintenance Standards and Compliance

Ontario Building Code

• All commercial buildings must comply with the Ontario Building Code (O. Reg. 163/24), which replaced O. Reg. 332/12 effective January 1, 2025.
• This regulation harmonizes Ontario standards with the 2020 National Building Code.
• The property owner (landlord) is ultimately responsible for ensuring the building structure and systems meet these updated standards during any alterations or occupancy changes.
• Tenants must ensure their improvements and alterations comply with the code.

Fire Code

• The Ontario Fire Code (O. Reg. 213/07), as amended by O. Reg. 87/25 (effective January 1, 2026), requires:
• Mandatory annual fire alarm testing and inspection in compliance with CAN/ULC-S536:2019, requiring granular testing and standardized ULC reporting forms.
• Monthly inspections for all doors in fire separations and means of egress (OFC Section 2.2 and 2.7).
• Expanded requirements for carbon monoxide alarm placement in existing buildings (OFC Section 2.16).
• Regular sprinkler system maintenance and fire safety plans for certain building types.

Accessibility (AODA)

• Common areas must meet Accessibility for Ontarians with Disabilities Act standards
• The landlord is typically responsible for common area accessibility
• Tenant spaces accessible to the public must also comply

Repair vs. Capital Replacement

A critical distinction in commercial leases:

Many leases include provisions for amortizing capital costs over their useful life and passing the annual amortized amount to tenants as an operating cost. This is a heavily negotiated area.

Tenant Remedies for Landlord Default

In Ontario commercial law, the Independent Covenants Rule applies: the tenant's obligation to pay rent is independent of the landlord's obligation to repair. A tenant cannot unilaterally withhold or abate rent due to a landlord's failure to maintain the property unless the lease contains a specific "rent abatement" or "set-off" clause.

If the landlord fails to maintain areas under their responsibility, the tenant's legal remedies are limited to:

1. Written notice — Formally notify the landlord of the deficiency and allow the cure period specified in the lease.
2. Action for Damages — Suing for financial losses incurred due to the landlord's breach.
3. Specific Performance — Seeking a court order to compel the landlord to perform the required repairs.
4. Constructive Eviction — Terminating the lease only if the landlord's failure is so fundamental that it renders the premises unusable for its intended purpose.
5. Contractual Abatement — Seeking rent reduction only if the lease explicitly provides for it during periods of non-repair or service interruption.

Best Practices for Ontario Commercial Landlords

1. Define maintenance responsibilities clearly — Ambiguity leads to costly disputes
2. Create a maintenance schedule — Preventive maintenance extends system life and reduces emergency costs
3. Budget for capital reserves — Plan for major system replacements
4. Conduct regular inspections — Annual or semi-annual property inspections with documentation
5. Keep detailed records — Maintenance logs, inspection reports, and contractor invoices
6. Comply with regulatory requirements — Building code, fire code, and AODA obligations

How Landager Helps

Operating in Ontario's commercial real estate market requires strict adherence to lease terms and the Commercial Tenancies Act. With commercial leases often shifting significant maintenance and operating costs (NNN) to tenants, tracking these allocations accurately is critical. Landager simplifies Ontario commercial property management by automating the calculation of Common Area Maintenance (CAM) reconciliations, maintaining detailed digital logs of maintenance requests, and tracking vendor invoices to protect against rent abatement claims. Whether you are managing retail storefronts in Toronto or multi-tenant industrial spaces in Ottawa, Landager provides the structural framework and record-keeping tools necessary to enforce lease obligations with confidence and mitigate the risks of costly legal disputes.

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