Victoria Commercial Eviction Process: Landlord's Guide to Lease Termination

Victoria commercial eviction processes differ significantly from residential evictions. The process depends on whether the property is governed by the Retail Leases Act 2003 (retail premises) or general contract law (non-retail commercial). In both cases, self-help evictions are prohibited.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed legal practitioner in Victoria for guidance specific to your situation. Information last verified: March 2026.

Grounds for Commercial Eviction

Retail Premises

Non-Retail Commercial

Retail Lease Eviction Process

Step 1: Identify the Breach

Document the specific breach — whether nonpayment, lease violation, or other default.

Step 2: Issue a Default Notice

• The notice must specify the breach and provide a reasonable remedy period
• For nonpayment: often 14-30 days to pay outstanding amounts
• For other breaches: typically 14-30 days to remedy

Step 3: Attempt Mediation (VSBC)

• For most retail lease disputes, parties must first attempt mediation through the Victorian Small Business Commission
• VSBC provides free preliminary assistance and low-cost mediation
• A VSBC certificate is required before most VCAT applications

Step 4: Apply to VCAT

If mediation fails:

• Apply to VCAT for a possession order or injunction
• VCAT will schedule a hearing
• Both parties present their case
• VCAT may grant possession, dismiss the application, or make other orders

Step 5: Enforcement

If the tenant does not comply with the VCAT order:

• Apply for a warrant of possession
• Police enforce the physical removal

Non-Retail Commercial Eviction

Lease Terms Govern

Non-retail commercial leases rely heavily on the lease agreement's default and termination provisions. Common procedures include:

Notice to Remedy Breach

Under the Property Law Act 1958, a landlord must generally give at least 14 days' notice to remedy a breach before re-entering:

• The notice must specify the breach
• Give a reasonable time to remedy
• State that the landlord intends to re-enter if not remedied

End of Fixed Term

• The lease simply expires on its end date
• The tenant is expected to vacate and complete make good obligations
• If the tenant remains without a new agreement, a holding-over tenancy may arise (terminable with 1 month's notice)

Re-Entry Clauses

Well-drafted commercial leases include re-entry provisions that allow the landlord to:

• Terminate the lease and reclaim possession for specific defaults
• Accelerate rent obligations
• Claim damages for the remaining lease term

Court Proceedings

For non-retail properties, court proceedings (rather than VCAT) may be necessary for:

• Complex eviction matters
• Injunctions
• Large damage claims

Make Good Obligations

Upon termination, tenants typically have make good obligations:

• Remove all tenant fit-outs and alterations
• Repair any damage beyond fair wear and tear
• Return the premises to the condition specified in the lease
• These obligations should be clearly defined in the lease

Prohibited Actions

Even for commercial properties, landlords must not:

• Change locks without a court order or VCAT authorisation
• Physically remove tenants or their property
• Disconnect utilities to force a tenant out
• Threaten or intimidate the tenant

Key Differences: Retail vs. Non-Retail Eviction

Best Practices for Commercial Landlords

1. Review your lease carefully — Understand the default and termination provisions
2. Document all breaches — Keep evidence of nonpayment, damage, or violations
3. Follow the notice requirements — Defective notices may be unenforceable
4. Use VSBC mediation for retail — It's mandatory and often resolves disputes faster
5. Engage legal counsel early — Commercial evictions can be complex
6. Plan for make good — Define obligations clearly in the lease and inspect before termination

How Landager Helps

Landager helps commercial landlords track lease default events, manage notice timelines, store VSBC and VCAT documentation, and monitor make good obligations — ensuring a smooth, compliant termination process.

Back to Victoria Commercial Property Laws Overview.