There are some situations where a landlord decides to end a commercial tenancy lease before the end of the agreement. Sometimes, it is possible to come to a mutual agreement about ending a lease early, however, there are circumstances where the tenant breaches a commercial lease.
Under Canadian law, a breach of lease may happen when you (the landlord) or the tenant fails to fulfill one or more of the lease obligations. The lease could be breached if the tenant engages in illegal activities.
How can you end a commercial tenancy if you think that your tenant has breached its terms?
Ending a Commercial Tenancy
First of all, it’s important that you always fulfill your side of the lease agreement. In the case of a dispute, if the tenant finds that you have breached some part of your obligations, it could mean that you can’t sue him or get any compensation for breach of contract.
Reasons to End a Commercial Tenancy Lease
Here are the most common situations that allow you to terminate a commercial lease without approval or agreement from the tenant.
Rent arrears
If a tenant fails to pay rent, you have the right to change the locks and not allow the tenant to continue using the premises. You can only do this when at least 16 days have passed since rent was due. Alternatively, you can re-enter the property without notice. However, you must give the tenant 5-days’ notice before selling the tenant’s property to recoup lost rent.
Vacating the property before the lease ends
A tenant will breach the lease if they move out before the lease expiry. If a tenant wishes to move out earlier than the end of the lease, they need written permission from you. If you suffer financial loss because you can’t find a new tenant, you can sue the tenant for loss of income.
Not fulfilling lease obligations
Tenants are required to abide by all conditions of the lease, including proper use of property, maintaining insurance, and anything else stipulated in the lease agreement. Before ending a commercial tenancy because the tenant hasn’t fulfilled his obligations, check with a lawyer first of all.
Tenant engages in illegal activities
The tenant will be in breach of contract if they engage in illegal activities. In these cases, it may be the police that closes down the business and then your lease will be terminated.
