A signed commercial lease may take precedence over Ontario’s Commercial Tenancies Act, so the clauses decide what happens to your business for years. Use this commercial lease checklist with your lawyer before you sign. Checked October 4, 2026.
- 1. Permitted use. Is it written broadly enough for what you sell today and may add later, such as take-out, delivery or alcohol? And does zoning allow it?
- 2. Exclusive use. Can the landlord rent another unit in the same plaza to a direct competitor? An exclusivity clause can prevent that.
- 3. Term and renewal options. How many renewals, for how long, and how is the renewal rent set?
- 4. Rent schedule. The net rent per square foot for every year of the term, in writing.
- 5. TMI. What is included, when it is reconciled, whether there is a management fee, and whether any part is capped.
- 6. Free rent and fixturing period. How long, and whether you still pay TMI during it.
- 7. Landlord’s work and tenant’s work. Who builds what, to what standard, and by what date.
- 8. Deposit. How much, what it is applied to, and when it comes back.
- 9. Personal guarantee. Are you personally liable if your company cannot pay? Ask whether it can be limited in amount or in time.
- 10. Assignment and subletting. Ontario’s rules let a tenant sublet or assign unless the lease prohibits it, and many leases require the landlord’s consent. Some leases also give any profit from a sublet to the landlord. This clause decides whether you can sell the business with the lease.
- 11. Demolition and relocation. Can the landlord end your lease early to redevelop, or move you to another unit? With how much notice, and is there compensation?
- 12. Repairs and HVAC. Who pays to repair and replace the heating and cooling units, the roof and the plumbing?
Also worth checking
Signage rights and the city’s sign permit, parking for your customers, opening hours and access, and what happens to your improvements when the lease ends.
Your lawyer gives the legal advice on the lease. I go through the business terms with you, in English or Arabic. Start with the steps to lease a commercial space.
Sources (official pages, checked October 4, 2026)
- Ontario – Renting commercial property in Ontario (Commercial Tenancies Act, updated July 2, 2026)
- Ontario – Citizen’s guide to land use planning: zoning bylaws
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.