In Port Sarnia Property Professionals v. Gateway Property Management Corp., a case decided by ORHT on March 15, 2006, ORHT had another opportunity to examine the applicability of TPA to the relationship between the landlord and the principal tenant. In determining this issue, the ORHT took into account the definitions in the TPA, among others, of “tenants” and “rent” of which the latter was defined as “the amount of any consideration paid or given or given or necessary, or given to a lessor on behalf of a tenant … for the right to occupy a rental unit… ». The ORHT ultimately concluded that the principal tenant did not meet the definition of “tenant” because he did not pay rent to occupy the rental units, but paid rent to have the right to rent the rental units to other people. One proposed solution to enable low-income and disadvantaged households to access housing in the private rental sector is “head leasing.” This is a great option for those who are interested in exploiting the advantages of subletting space and headlease space. A mixed lease can offer you the best risky conditions at the lowest risk and at the best price. The benefits of head rental for landlords lies in the fact that they have a guaranteed income during the term of the lease; that maintenance and damage caused by tenants be repaired by the BHKW; and they don`t have to use (and pay) the services of a real estate agent to manage the property. This means that the PCCE may be able to negotiate a lower rent than would normally be the case. You may even have difficulty renewing your lease if the administrator intends to close the store. In European Style Bldgs. Ltd.
v. 191 St. George Street Ltd., a case decided by the Ontario District Court in June 1987, the owner leased a 100-unit apartment building to a business owner who, in turn, leased rental units to subtenants residing in the rental units. The judge took note of the Matlavik case, but found that the case in question was different from That of Matlavik and that the relationship between the lessor and the principal tenant was a commercial lease for the purposes of the LTA.
