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ARTICLE · 09 MAY 2016

My Tenant Owes Me Rent – What Can I Do?

Alexander Holburn Beaudin + Lang LLP
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A commercial tenant falling into arrears is unfortunately a not-infrequent occurrence. Faced with a non-paying tenant, commercial landlords have a number of options to enforce their rights.

CanadaReal Estate and Construction
Alexander Holburn Beaudin & Lang LLP
Alexander Holburn Beaudin & Lang LLP
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A commercial tenant falling into arrears is unfortunately a not-infrequent occurrence. Faced with a non-paying tenant, commercial landlords have a number of options to enforce their rights.

First, the landlord can distrain for the arrears pursuant to the Rent Distress Act. This typically involves retaining a bailiff to seize and sell the tenant's personal property in order to pay the arrears of rent. Distraint can be a particularly useful remedy where the tenant has valuable inventory or other property on the premises. Often the mere threat that their property will be seized and sold will result in a non-paying tenant coming to terms with the landlord.

One disadvantage to this option is that it may effectively put the tenant out of business, meaning that as a practical matter, any recovery may be limited to the proceeds of the distraint. A landlord also cannot sue for arrears of rent while there is an outstanding distraint. A further disadvantage is that landlords

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