South Australia Commercial Eviction Process
Understand the SA commercial eviction process, including breach notices, the role of SACAT, and landlord remedies for defaulting tenants.
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South Australia Commercial Eviction Process
Commercial Eviction Process in south australia
Issue Breach Notice
Serve a formal written breach notice specifying the default and cure period.
Allow Remedy Period
Give the tenant time to rectify the breach as specified in the notice or lease.
Terminate Lease
Issue a termination notice if the breach is not resolved within the cure period.
Go to Court or Tribunal
If the tenant disputes the eviction, proceed to South Australian Civil and Administrative Tribunal (SACAT) for adjudication.
Removing a commercial tenant from a property in South Australia is a formal legal procedure. Self-help lockouts—changing the locks or cutting services without a court or tribunal order—are unlawful. All commercial evictions must follow the proper breach notice and legal resolution process.
When Can a Landlord Terminate a Commercial Lease?
A commercial lease can typically be terminated by the landlord for the following reasons:
1. Non-Payment of Rent
If a commercial tenant fails to pay rent, the landlord must generally issue a formal breach notice (typically giving the tenant 14 days to remedy the breach) before taking any action to reclaim the premises.
However, certain leases may contain a clause permitting the landlord to re-enter (with a court order) for non-payment of rent without waiting the full notice period. Such clauses are enforceable in commercial settings but must be exercised carefully.
2. Other Breaches of the Lease
For non-monetary breaches (e.g., operating outside the permitted use, failing to maintain the premises, unauthorized subletting), the landlord must issue a written breach notice detailing:
- The specific breach.
- The steps required to remedy it.
- A reasonable timeframe for the tenant to fix the issue (commonly 14 to 30 days).
If the tenant fails to remedy the breach within the specified period, the landlord can seek a court or tribunal order for possession.
3. Repeated Breaches
If a tenant commits the same breach on two or more occasions within 12 months, the landlord may apply to SACAT for a termination order without first issuing another breach notice.
4. End of Lease Term (No Right of Renewal)
If a lease expires and the tenant has no contractual right of renewal or option to extend, the tenant must vacate. If they refuse, the landlord can apply for a possession order.
Common Misconceptions in
Don't fall for these common myths. Know what the law actually says.
"I can re-enter the premises and change the locks if the tenant stops paying rent."
Self-help re-entry without a court or tribunal order is unlawful. Even where a lease contains a re-entry clause, exercise of that right requires a court process in practice. Unlawful lockouts expose landlords to significant damages claims.
"The commercial eviction process is faster than residential because there is no SACAT involvement."
Commercial evictions for leases under the RCLA 1995 still require SACAT involvement (or court involvement for bond disputes). While commercial tenants do not have the same no-grounds protection as residential tenants, the formal breach notice and hearing process still applies.
"Once I issue a breach notice, the tenant must vacate at the end of the cure period."
A breach notice is not a possession order. If the tenant does not remedy the breach and does not voluntarily vacate, you must apply to SACAT or the court for a termination and possession order. Only then can a bailiff enforce the eviction.
The Legal Process
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Identify the Default
Confirm the specific breach: rent arrears, operating outside permitted use, damage, unauthorised subletting, etc.
Issue Breach Notice
Serve a formal written breach notice specifying the breach, the remedy required, and the cure period (typically 14 days for non-payment, 14-30 days for other breaches).
Cure Period Expires
If the tenant remedies the breach within the cure period, no further action is needed. If not, proceed.
Apply to SACAT or Court
Lodge an application with SACAT (leases under RCLA) or the appropriate court for a termination and possession order.
Hearing and Possession Order
Both parties present evidence. If the landlord succeeds, a Possession Order is issued. A bailiff enforces it if the tenant refuses to vacate.
Landlord's Right to Damages
In addition to seeking possession, a landlord can also claim damages for the tenant's breach, which may include:
- Unpaid rent and outgoings up to the date of possession.
- Costs to restore the premises to the condition required by the "make good" clause in the lease.
- Loss of future rental income for a reasonable period while the landlord re-lets the premises.
Best Practices for SA Commercial Landlords
- Follow the Notice Process Religiously: The most common reason a commercial eviction fails in court is a procedural error in the breach notice (e.g., insufficient detail, wrong address, inadequate cure period).
- Keep Evidence of the Breach: Compile documents—payment ledgers, photographs, inspection reports—that clearly demonstrate the tenant's default.
- Engage Solicitors Early: The financial stakes in commercial evictions are high. Engage a commercial property solicitor the moment the tenant falls into default, not months later.
Frequently Asked Questions:
In addition to a possession order, a landlord can claim: (1) Unpaid rent and outgoings up to the date a new tenant pays rent; (2) Reasonable costs to restore the premises under the make good clause (supported by invoices); (3) Loss of future rental income for a reasonable re-letting period (the landlord has a duty to mitigate by actively marketing and re-letting the property). All claims must be supported by documentary evidence.
For retail shop leases under the RCLA 1995, most disputes — including eviction proceedings — go to SACAT. SACAT is designed to be a more accessible, lower-cost forum than the courts. However, bond refund disputes specifically must go to the Magistrates Court, and for leases outside the RCLA 1995 (e.g., rent exceeds $420,000), all proceedings go to the District or Supreme Court depending on the sum of the claim.
If a corporate tenant abandons the premises (stops operating, stops paying, stops communicating), the landlord should first serve notices on the registered company address (obtainable from ASIC). If there is no response and the premises appear abandoned, the landlord should seek urgent legal advice about whether to apply for an emergency order. Do not retake possession without legal authority, even if the premises appear deserted — an abandoned commercial tenancy still requires a formal legal process to regularise.
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