When a commercial tenant falls into arrears, a landlord may take steps to recover the amounts owed. However, to ensure a successful result, landlords must understand the remedies available to them and the legalities surrounding these.

Before taking action, an important first step is to verify what the original commercial lease agreement sets out regarding possible remedies. Remedies that are not written into the lease may not be viable options.

If a commercial tenant in British Columbia fails to pay rent, remedies exist for landlords, as set out both under the British Columbia Commercial Tenancies Act and within common law.

Some possible remedies include:

  • Distraint – in which the landlord exercises the right to seize – typically through the services of a bailiff – the goods of the tenant to cover rental arrears.
  • Suing for amounts due— in which a landlord is insisting that the terms of the lease agreement be maintained and sues the tenant for amounts in arrears.
  • Affirming the lease and re-letting the premises – in which the landlord refuses to terminate or have the tenant abandon the lease. However, the landlord informs the tenant that the space will be rented out to another tenant. Rent accrues in the meantime. Once a new tenant is found, the landlord terminates the lease of the non-paying tenant. This remedy should be noted in the lease agreement.
  • Termination of the lease and re-letting the premises – Unless the arrears are paid, the landlord makes it clear that the tenant may not return. This terminates the tenancy. Once the landlord has taken back possession, he or she can sue for damages, but only for rent due up to the termination of the lease. This remedy should also be provided for in the lease.

Since these and other recovery options may be accompanied by rules and conditions, landlords do well to consult in advance with a lawyer experienced in navigating creditor remedies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.