To evict a commercial tenant for non-payment of rent in London, Ontario, you must wait until the rent is 15 days past due. Under the Commercial Tenancies Act, you can then legally hire a bailiff to change the locks (termination) or seize their physical goods to sell for unpaid rent (distress), but you cannot do both simultaneously.
When a business stops paying its lease, a commercial landlord’s financial security is immediately threatened. Unlike residential evictions, which are notoriously slow and heavily favour the tenant, commercial landlords in Ontario possess significant and rapid legal power to protect their investments. The Landlord and Tenant Board (LTB) does not apply to commercial properties.
Whether your property is located in Downtown London, a retail plaza in Masonville, or an industrial park near the 401, you must adhere strictly to the rules of the Commercial Tenancies Act. ⚠️ Trying to evict a commercial tenant incorrectly or prematurely can result in a massive lawsuit against your business for illegal lockout or loss of income.
Step-by-Step Process to Evict a Commercial Tenant in London
Acting too fast or without professional help is a common mistake. Generally, commercial real estate lawyers in Ontario recommend the following strategic steps to handle a defaulting tenant safely.
Step 1: Wait the Mandatory 15 Days
If the rent is due on the 1st of the month, you cannot change the locks on the 2nd. 🕑 Ontario law clearly states that a commercial landlord must wait until the rent is at least 15 days in arrears before taking physical action. During this waiting period, it is standard practice to send a written demand letter notifying the tenant of their default.
Step 2: Choose Your Legal Remedy
Once the 15-day mark passes, you must make a critical decision. You have two choices: Termination (changing the locks and ending the lease) OR Distress (entering the unit, seizing the tenant’s inventory/equipment, and selling it to recover the rent). You cannot do both at the same time. If you terminate the lease, you lose the right to seize their goods for arrears.
Step 3: Hire a Commercial Bailiff
Do not attempt to change the locks yourself. 👮♂️ It is highly recommended to hire an independent, licensed commercial bailiff operating in the London area. A bailiff acts as a neutral third party, ensuring the lockout is conducted peacefully, legally, and without exposing you to claims of theft or improper procedure.
Step 4: Execute the Lockout (Termination)
If you chose termination, the bailiff will attend the property (usually early in the morning or after hours), change the locks, and post a formal Notice of Termination on the front door. The tenant is then officially evicted. You must allow them a supervised window to safely retrieve their personal belongings and sensitive client files, but they no longer have rights to the unit.
How Much Does it Cost in London?
Evicting a commercial tenant involves out-of-pocket expenses that you must pay upfront. Here is a breakdown of the typical costs you can expect in CAD.
| Service / Action | Estimated Cost in CAD |
|---|---|
| Commercial Bailiff Services | $500 to $1,500 CAD for a standard lockout. |
| Professional Locksmith | $150 to $350 CAD depending on door hardware. |
| Lawyer Drafting Default Letters | $300 to $800 CAD per notice. |
| Court Application (if contested) | $5,000 to $15,000+ CAD in legal fees. |
While you may eventually recover these costs if you sue the tenant for breach of contract, you need cash on hand to initiate the eviction process smoothly. 💰
How Long Does the Process Take?
Commercial evictions for non-payment are exceptionally fast. You must wait the mandatory 15 days. Once the 16th day arrives, the actual lockout conducted by a bailiff takes less than 24 hours to execute. This means a non-paying tenant can be completely removed from your property in just over two weeks.
Frequently Asked Questions (FAQ)
Can the tenant force their way back in?
If the tenant breaks the new locks, they are committing criminal trespassing. However, a tenant can apply to the Ontario Superior Court of Justice for “Relief from Forfeiture.” If they pay all the outstanding rent and your legal costs, a judge may order you to let them back into the space and reinstate the lease.
Do I need a court order to evict a commercial tenant?
For non-payment of rent, no court order is required in Ontario. The Commercial Tenancies Act gives you the right of “self-help” to use a bailiff directly. However, if you are evicting them for other lease breaches (like causing damage), the rules differ and may require court involvement.
What happens to the inventory left inside after termination?
When you terminate the lease, the goods inside still belong to the tenant. You must give them a reasonable, supervised opportunity to remove their items. If they abandon the goods, you can eventually sell or dispose of them, but you must follow strict notification rules first.
What if the tenant files for bankruptcy?
If the commercial tenant officially files for bankruptcy, an automatic legal stay is placed on all eviction and collection actions. You cannot change the locks or seize goods without dealing with the Licensed Insolvency Trustee overseeing their file.
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