What will happen to your restaurant business if can’t pay your rent.                                                         

The Landlord has two options.

1. Change the locks in your restaurant: The Landlord may change the locks and evict on the 16th day after the day rent was due. Landlord is not obligated to inform the tenant about the locks will be changed.  

(December 1st your rent is due on December 17th) locks can be changed without notify you. Landlords should allow tenants in the premise to remove their property.

2. Remember Landlords and Tenants should never force their way into the premises. Landlord can seize and dispose Tenant’s property:  

The Landlord may seize and dispose the Tenant’s property that is in the rented premises. The Landlord has no obligation to give notice of seizing the Tenant’s property, unless the formal lease stated in. The Landlords need to notify the Tenant of the distress and the rental arrears required to cure the default before proceeding to sell the seized property. Before disposing, the Landlord must hold the seized property for five days. If the Tenant paid the rental arrears, within this five day period, the landlord is not permitted to sell the tenant’s property. Otherwise, after the proper appraisals are made, the property can be sold. (December 1st rent due not paid, December 2nd Landlord seize the Tenant’s property and informed the tenant of disposing the seize property)

Note

The Act requires two appraisals before selling or disposing of a tenant’s property. The proceeds from the disposal of a tenant’s property are to be applied to the rental arrears. In the event that proceeds exceed the amount of the arrears, a landlord is obligated to reimburse the excess amount to the tenant. Some types of tenant property cannot be seized, for example, property that is leased or co-owned. Sub-tenants who continue to pay the full rent cannot have their property seized if the head tenant failed to pay the rent to the landlord. In the event that a sub-tenant’s property is seized, the landlord would be required to return the goods.

Commercial tenants who wish to dispute their landlord’s actions may apply to the Superior Court of Justice.

Landlords and Tenants are advised to seek legal advice in their specific situations.