Under the Ontario Commercial Tenancies Act, a landlord can legally change the locks without a court order if a commercial tenant’s rent is unpaid for exactly 15 days. It is highly recommended to hire a private commercial bailiff to execute the eviction to avoid massive legal liabilities.
Dealing with a commercial tenant who stops paying rent is incredibly frustrating and threatens the financial stability of your property. 🏬 Unlike residential rentals, which are heavily regulated by the Landlord and Tenant Board (LTB), commercial leases in Ontario operate under a completely different set of rules. The law generally favours the property owner, allowing for swift action when money is owed.
This guide explains the exact steps a commercial landlord must take to reclaim their property safely. Whether your commercial building is located in Mississauga, Toronto, or Hamilton, the Commercial Tenancies Act (CTA) provides strict guidelines for lockouts and asset seizures that must be followed to the letter.
Step-by-Step Process in Ontario
Commercial evictions move very quickly, but one wrong step can lead to your former tenant suing you in the Superior Court of Justice for illegal eviction or lost profits. 📍 Here is how to navigate the process legally:
Step 1: Review the Commercial Lease Agreement
Before taking any action, you or your corporate lawyer must thoroughly read the lease agreement. While the Commercial Tenancies Act sets baseline rules, a well-drafted lease can actually override certain parts of the Act. Check if your specific lease requires you to give the tenant a formal written notice of default before you are allowed to take action.
Step 2: Wait the 15-Day Grace Period
If rent is due on the 1st of the month and the tenant fails to pay, you cannot lock them out on the 2nd. 📅 By provincial law, you must wait until the rent is exactly 15 days overdue. On the 16th day, you legally have the right to take action, provided you have not accepted any partial rent payments that might restart the clock or complicate the legal arrears.
Step 3: Hire a Commercial Bailiff
While you physically can change the locks yourself, doing so is highly risky. The best practice is to hire a licensed private commercial bailiff. A bailiff acts as an independent professional who will attend the property, ensure the lockout is peaceful, inventory any equipment inside, and post the legal Notice of Termination on the front door.
Step 4: Choose Between Termination or Distress
When you act on the 16th day, you must make a crucial legal choice. ⚔ You can exercise the Right of Re-entry (which terminates the lease and evicts the tenant) OR the Right of Distress (which keeps the lease alive but allows the bailiff to seize and sell the tenant’s equipment to pay the rent). You cannot legally do both at the same time for the same rent arrears.
How Much Does it Cost in Ontario?
Evicting a commercial tenant involves immediate out-of-pocket expenses for the landlord, though you can often sue to recover these costs later. 💰 As of 2026, here is what you can expect to pay in CAD:
- Commercial Bailiff Fees: Hiring a bailiff to execute a lockout and post notices typically costs between $500 and $1,500 CAD, depending on the complexity of the job and location.
- Locksmith Services: You will need to pay an emergency locksmith to rekey the doors on the spot, which usually ranges from $150 to $400 CAD.
- Lawyer Fees: Having a commercial real estate lawyer review the lease and draft the eviction notices generally costs between $500 and $1,500 CAD.
- Litigation Costs: If the tenant disputes the eviction or you need to sue them for the remaining rent balance in the Superior Court of Justice, legal fees can easily exceed $10,000 CAD.
| Legal Action | When You Can Do It | Result for the Lease |
|---|---|---|
| Right of Re-entry (Lockout) | 16th day after rent is due | Lease is permanently terminated |
| Right of Distress (Seizure) | Day after rent is due | Lease remains active |
| Suing for Damages | After termination | Seeking money in court |
How Long Does the Process Take?
The physical eviction process is extremely fast. ⏳ Once the 15-day waiting period expires, your bailiff can change the locks and secure the property in a matter of hours. However, if you choose the Right of Distress to seize and sell the tenant’s assets, you must hold the goods for 5 days before having them professionally appraised and sold at a public auction, which takes several weeks to finalize.
Frequently Asked Questions (FAQ)
Can I use the Landlord and Tenant Board (LTB)?
No. The Landlord and Tenant Board only deals with residential housing. Commercial evictions are governed by the Commercial Tenancies Act and any disputes must be settled in the Ontario Superior Court of Justice.
What happens to the tenant’s equipment inside the unit?
If you terminate the lease, you must give the tenant a reasonable opportunity (often supervised) to remove their personal property and equipment. If you want to keep their equipment to pay for the rent, you must use the Right of Distress instead of terminating the lease.
Can the tenant force their way back in?
If the tenant breaks the new locks to re-enter, they are committing a crime (break and enter), and you should call the local police. However, the tenant can apply to a judge for “relief from forfeiture,” asking the court to let them back in if they pay all arrears and legal costs.
Can I cut off their electricity instead of changing locks?
No. Deliberately cutting off vital services like electricity, water, or heat to force a commercial tenant out is considered an illegal eviction tactic. You must follow the legal lockout procedure using a bailiff.
Leave a Reply