In construction, a landlord is not just a property owner.

They are a stakeholder with a vested interest in your speed to market, the longevity of their asset, and the stability of the building’s infrastructure.

For a franchise owner, the landlord’s "Requirement List" often feels like a series of hurdles designed to slow you down. In reality, these requirements are a roadmap for risk mitigation.

If you understand the "why" behind their demands, you can navigate the approval process in weeks instead of months.

The Hierarchy of Landlord Interests

A landlord cares about three things in a build-out:

1. Structural Integrity: You aren't compromising the building's bones.

2. Mechanical Load: Your new HVAC or kitchen exhaust won't blow the building’s capacity.

3. Future Value: If your business leaves, the "bones" of your renovation (flooring, lighting, electrical) should add value to the next tenant.

In the GTA, these interests are codified in the Work Letter—the most important document in your lease that you likely haven't read closely enough.

The Approval Gatekeepers

Before a single hammer swings, you need a "Notice to Proceed." In Ontario, this usually requires a specific package of documentation that goes beyond what the city needs for a permit.

1. Engineered Drawings and MEPs

Landlords in Toronto and the surrounding municipalities almost universally require stamped drawings for Mechanical, Electrical, and Plumbing (MEP). They need to see exactly how you are tying into the main stacks and the electrical grid. The Risk: If you hire a "design-build" firm that sketches on napkins, the landlord’s consultant will reject the plans, costing you weeks in revenue while you wait for a re-draw.

2. Designated Substance Surveys (DSS)

If you are moving into an older building in Hamilton, Kitchener, or downtown Toronto, your landlord will demand a DSS before you touch a wall. They need to know if you're about to disturb asbestos or lead. Skipping this doesn't just annoy the landlord; it triggers a Ministry of Labour shutdown that can freeze your site for a month.

3. Structural Penetrations

Planning to put a new vent through the roof? Most landlords will insist you use their preferred roofer to maintain the building warranty. The Operator Move: Factor this into your budget early. The landlord’s roofer will always be more expensive than yours, but fighting it is a losing battle that delays your opening.

The Hidden Costs of Compliance

Many operators miss the "Soft Costs" associated with landlord requirements.

• Review Fees: Many major REITs and landlords in Ontario charge a "Plan Review Fee." This can range from $1,500 to $5,000 just for their engineers to look at your drawings.

• Security Deposits: This is separate from your rent deposit. It’s a construction-specific bond held to ensure you don't leave the hallway damaged or the freight elevator broken.

• Submetering: In modern GTA developments, you are often required to install specific submeters for hydro and water so the landlord can bill you accurately. If you don't order these early, you won't get your final inspection.

Translating "Requirements" into Revenue

Every day your contractor spends arguing with a landlord’s property manager is a day you are paying rent without serving a single customer.

We see construction as a business function. When the landlord asks for a "Proof of Insurance" with a specific $5M liability rider and a "Waiver of Subrogation," they aren't being difficult. They are protecting the asset.

If you provide what they need before they ask, you build a "High-Trust" relationship. High-trust tenants get faster responses, smoother inspections, and easier lease renewals.

Understand the rules of the building before you sign the lease. Better yet, make sure your construction partner has already read the Work Letter before the first site walk.

If you want an experienced set of eyes to review your lease's Work Letter before you sign, you can book a review call here.