Ontario Commercial Lease Guide (Canada)
Commercial Lease Risks in Ontario
Don't sign a lease in Ontario until you understand pass-through costs, repair obligations, and common landlord traps.
Not legal advice. Use this as a checklist and discuss with a qualified professional.
Key Things to Watch in Ontario
These are common commercial lease risks for tenants. Always confirm the exact terms in your lease.
HST on Commercial Rent
Commercial rent is generally taxable in Canada. Confirm whether HST applies and budget for it (and clarify whether amounts are 'plus HST').
Additional Rent / Net Lease Terms
Ontario leases often pass through taxes, insurance, utilities, and operating expenses as 'additional rent'. Require clear definitions, exclusions for capital items, and audit rights.
Common Landlord Traps
- Uncapped pass-throughs: Operating costs, taxes, and insurance can rise year-to-year without a cap.
- Capital replacements billed to tenant: Avoid language that makes you pay for roof/HVAC replacement.
- Short notice deadlines: Renewal and termination rights can depend on strict written notice windows.
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