A. Picking your tenant  

1. Do thorough due diligence on the tenant and its principals  

(a) Personal property security registry  

(b) Land titles office  

(c) Credit search  

(d) Court registry search  

B. Drafting the Lease  

1. If it’s a corporate tenant, get a guarantee, security over property, etcetera  

2. Do not slavishly follow precedents  

3. Avoid Mr. Potato Head leases  

(a) Grace Residences Ltd. v. Whitewater Concrete Ltd.  

(i) “substantial performance of the work” not defined in the Builders Lien Act  

(ii) “substantial performance of the work” and “substantial performance” mean different things  

4. If it really matters, define it  

(a) Rumrunner Pub Ltd v. Seaport Place Holdings ULC  

(i) It was a term of the option to renew the lease that the landlord could insist that the tenant undertake “major improvements”  

(ii) Tenant exercised option but did not undertake improvements  

(iii) Clause was deemed vague and unenforceable  

5. Anticipate future problems and opportunities and deal with them in the lease  

6. Ensure that you can meet your obligations  

(a) Shingle manufacturer case  

(i) Governing body would not let the landlord lease to the tenant and maintain membership in the organization  

7. Watch out for “entire agreement” clauses

C. During the lease  

1. An ounce of prevention is worth a pound of cure  

(a) Do not wait until you have a problem to get proper advice  

2. Dust off your lease and read it  

(a) Act consistently with the terms of the lease