Commercial tenancy

A commercial tenancy is the rental of premises used for business purposes, such as a store, office, restaurant or warehouse. The rights and obligations of landlord and tenant are set mainly by the written lease, which covers rent, term, renewals, repairs, permitted use, assignment and default. Commercial tenancies are not governed by the Residential Tenancy Act.

How BC law treats it

BC commercial tenancies are governed mainly by the lease and the common law, together with the Commercial Tenancy Act, RSBC 1996, c 57. That Act does not regulate rent increases, renewals or repairs and has no mediation or arbitration scheme; its main procedural content is a summary court process for a landlord to recover possession from an overholding tenant. Other disputes go to the courts, usually the Supreme Court of BC or, for smaller money claims, the Provincial Court, or to arbitration if the lease provides for it.

What it means for your business

Because there is little statutory protection, a business tenant must negotiate the protections it needs in the lease before signing.

Risks and common mistakes

Signing a personal indemnity or guarantee without limits can leave a business owner personally liable for rent long after the business closes.

For the full explanation, see our entry on Commercial lease.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.