Why the RTB Can't Help You
If you're a commercial landlord with a non-paying tenant, your first instinct might be to contact the Residential Tenancy Branch.
Don't waste your time.
The RTB handles residential tenancies only. Commercial lease disputes fall under the Commercial Tenancy Act and are resolved through:
- Negotiation
- Mediation/Arbitration
- BC Supreme Court
This means commercial landlord-tenant matters are more complex, more expensive, and take longer than residential disputes.
Your Legal Options When Rent Stops
Option 1: Distraint (Seizing Tenant Goods)
Under the Rent Distress Act, commercial landlords have a unique remedy: you can seize and sell a tenant's goods on the premises to cover rent arrears.
How it works:
- Rent must be in arrears
- You (or a bailiff) enter the premises
- Seize goods belonging to the tenant
- Provide notice of intention to sell
- Sell goods to recover arrears
Cautions:
- Cannot seize goods belonging to third parties
- Must follow strict procedural requirements
- Tenant can file for relief
- Generally requires professional bailiff
Option 2: Sue for Rent Arrears (Affirm the Lease)
You can affirm the lease and sue the tenant for unpaid rent while the lease continues. This means:
- Lease remains in effect
- Tenant remains liable for ongoing rent
- You have NO duty to mitigate (find a new tenant)
- You can continue collecting rent or suing for each missed payment
Important: Once you affirm, you cannot later terminate for the same breach.
Option 3: Accept Repudiation and Re-let
If the tenant has abandoned or clearly repudiated the lease, you can:
- Accept their repudiation (terminate the lease)
- Sue for damages (remaining rent minus mitigation)
- Re-let the premises
Critical distinction: If you accept repudiation, you MUST mitigate your losses by attempting to find a new tenant. The tenant can reduce their liability by proving you failed to mitigate.
Option 4: Fast Track Litigation
For claims under $100,000, BC offers Fast Track Litigation:
- Expedited court process
- Lower costs than regular litigation
- Suitable for straightforward rent arrears claims
Affirm vs. Accept: The Critical Decision
This is where many landlords make costly mistakes.
| Action | Affirm the Lease | Accept Repudiation | |--------|-----------------|-------------------| | Lease Status | Continues | Terminates | | Duty to Mitigate | No | Yes | | Can Collect Future Rent | Yes (as it comes due) | No (sue for damages) | | Tenant Remains in Possession | Possibly | No |
Get legal advice before choosing. The wrong decision can cost you tens of thousands.
Practical Steps When Rent is Late
Week 1-2: Communication
- Document all communications
- Send formal written notice of arrears
- Request meeting to discuss
Week 3-4: Formal Demand
- Engage lawyer to send demand letter
- Cite specific lease provisions
- Set clear deadline
Month 2+: Legal Action
- Decide: affirm or accept
- Consider distraint if goods on premises
- File court action if necessary
Case Study: Broadway Retail Recovery
A retail landlord on Broadway had a tenant three months behind ($45,000 in arrears). The tenant claimed COVID-related hardship but was clearly operating.
Our approach:
- Formal demand letter citing lease breach provisions
- Tenant offered partial payment plan
- We negotiated full arrears paid over 6 months with personal guarantee
- Added lease amendment with enhanced default provisions
Result: Full recovery without court costs.
Don't Navigate Commercial Disputes Alone
Commercial tenant issues require different strategies than residential. The financial stakes are higher, and the legal framework is more complex.
Call or text David directly: (236) 998-5841
We've helped Vancouver commercial landlords recover hundreds of thousands in arrears.