Commercial Evictions in Tasmania: Forfeiture and Re-entry
Commercial Eviction Process compliance guide for Tasmania, Australia. Covers landlord-tenant regulations, requirements, and legal obligations.
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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.
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:
- The exact breach that has occurred (e.g., failure to pay $8,500 in base rent for April).
- The specific action the tenant must take to remedy the breach (e.g., pay the outstanding amount).
- 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.
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Identify Breach
Document the specific lease breach (unpaid rent, abandonment, unauthorized subletting).
Verify Re-entry Right
Confirm the lease explicitly grants a Right of Re-entry for the identified default.
Serve Notice to Remedy
Issue formal Notice to Remedy Breach of Covenant stating breach, remedy, and reasonable timeframe.
Wait for Remedy Period
Allow the tenant reasonable time to cure the breach (7-14 days for rent, 14-30 days for non-monetary).
Execute Peaceful Re-entry
If unremedied, attend premises outside business hours, change locks, and post Notice of Re-entry.
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.
Common Misconceptions in
Don't fall for these common myths. Know what the law actually says.
"I can immediately change the locks the moment commercial rent is late."
Even with an explicit re-entry clause, you must almost always serve a formal Notice to Remedy Breach of Covenant under the Conveyancing Act 1884 and allow a reasonable time to pay.
"Once I execute a peaceful re-entry, the tenant has no recourse."
The tenant can immediately apply to the Supreme Court for Relief Against Forfeiture. If they pay outstanding rent and legal costs, the court will almost always reinstate the lease.
"I can evict a commercial tenant even if the lease does not mention re-entry."
If the lease is silent on the right of re-entry, you cannot use forfeiture. You must sue for breach of contract and seek a court order terminating the lease, which is significantly slower.
Frequently Asked Questions:
Relief Against Forfeiture is a legal remedy available to commercial tenants through the Supreme Court of Tasmania. If a tenant pays all outstanding rent, covers the landlord’s legal costs, and commits to strict future compliance, the court will almost always grant the relief and reinstate the lease. Courts view forfeiture as a mechanism to secure payment, not destroy a business.
Yes. In addition to recovering unpaid rent, a landlord can potentially claim damages for breach of lease covenants (e.g., property damage, failure to maintain), lost rent for the remainder of the lease term (subject to mitigation), and costs associated with re-letting the premises.
A peaceful re-entry means the landlord or their agent attends the premises (typically outside business hours), secures the property by changing locks or electronic codes, and posts a formal Notice of Re-entry on the front door. It must be done without physical confrontation or breach of the peace.
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