Commercial Evictions in Tasmania: Forfeiture and Re-entry

Evicting a commercial tenant in Tasmania—legally known as "forfeiture of the lease" or "re-entry"—is a drastic and highly rigid legal procedure. Despite what the commercial lease agreement might claim regarding swift evictions, a landlord's right to lock a tenant out of their business is regulated by strict, centuries-old property statutes.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Commercial evictions are a legal minefield that can result in massive "wrongful eviction" lawsuits if executed improperly. Always retain a licensed commercial property litigator in Tasmania before attempting a lock-out. Information last verified: March 2026.

The Right of Re-entry

First and foremost, a landlord can only attempt to evict a commercial tenant if the written lease explicitly grants the landlord a "Right of Re-entry" upon a specified default (such as failing to pay rent for 14 days, or abandoning the premises).

If the lease is completely silent on the right of re-entry, the landlord generally cannot use forfeiture to evict the tenant; they must instead sue the tenant for breach of contract and seek a court order terminating the lease, which is a significantly longer process.

The Notice to Remedy Breach of Covenant

Even if the lease explicitly grants an "immediate right of re-entry," the landlord cannot simply change the locks without warning.

Under the Conveyancing and Law of Property Act 1884 (Tas), a landlord must almost always serve the tenant a formal statutory document known as a Notice to Remedy Breach of Covenant prior to executing forfeiture.

This critical legal document must precisely state:

1. The exact breach that has occurred (e.g., failure to pay $8,500 in base rent for April).
2. The specific action the tenant must take to remedy the breach (e.g., pay the outstanding amount).
3. The specific amount of compensation the landlord requires for the breach (if any).

The "Reasonable Time" Requirement

Most importantly, the Notice must give the tenant a "reasonable time" to remedy the breach. What constitutes a "reasonable time" depends entirely on the nature of the breach:

• For Non-Payment of Rent: Depending on how the lease is drafted and the specific demands of the Notice, 7 to 14 days is generally considered reasonable to allow a business to source funds. Note that some common law precedents allow for immediate forfeiture for non-payment of rent if the lease explicitly allows it without notice, but best practice in modern commercial leasing is to serve clear notice to avoid applications for relief.
• For Non-Monetary Breaches: (e.g., failing to repair a specialized HVAC unit, or illegally subletting the space). A reasonable time might be anywhere from 14 to 30 days, giving the tenant adequate time to hire specialized contractors.

Executing the Eviction (Peaceful Re-entry)

If the tenant fails to remedy the breach before the deadline stated on the properly served Notice expires, the landlord has the legal right to execute forfeiture of the lease. In Tasmania, this is typically done via Peaceful Re-entry.

If the landlord or their agent can attend the commercial premises (typically outside of business hours) without causing a physical confrontation or a breach of the peace, they can secure the premises (change the padlocks/electronic codes) and post a formal "Notice of Re-entry" clearly on the front door.

From that moment on, the lease is forfeited. The tenant cannot return to the premises to operate their business without the landlord's permission.

Relief Against Forfeiture

Commercial tenants operate businesses with massive sunk costs. If a landlord successfully changes the locks, the tenant has the right to immediately apply to the Supreme Court of Tasmania for "Relief Against Forfeiture."

If the tenant arrives at court, pays the outstanding rent, covers the landlord's legal costs, and promises to strictly adhere to the lease moving forward, the court will almost always grant the relief, ordering the landlord to hand the keys back to the tenant and reinstate the lease. The courts generally view forfeiture as a mechanism to secure the payment of rent, not as a weapon to destroy a tenant's livelihood for a minor procedural breach.

Automating Default Procedures

Executing a commercial eviction requires an impeccable paper trail. Landager provides institutional-grade ledger tracking for Tasmanian properties, ensuring that when commercial rent hits severe arrears, property managers are automatically reminded of the precise statutory notice workflows, preventing costly procedural missteps that could invalidate a peaceful re-entry action or expose the landlord to wrongful eviction damages.

Back to Tasmania Commercial Landlord-Tenant Laws Overview.