Ending Commercial Tenancies

Ending your commercial tenancy as a landlord is not a simple exercise. There are strict rules that govern the eviction of tenants. In South Australia, these rules are found in the Landlord and Tenant Act 1936 (SA) and the Retail and Commercial Leases Act 1995 (SA).

A major hurdle for landlords is providing adequate notice of the eviction to their tenants. If your lease falls under the operation of the Retail and Commercial Leases Act, the notice you must give as a landlord is no less than 6 months, but no more than 12 months. These periods are halved if the lease duration is for less than 12 months.

If the tenant is in breach of their lease, under the Landlord and Tenant Act, landlords must provide notice of the breach and require the tenant remedy the breach. If the tenant then fails to remedy the breach or compensate the landlord for breaching the lease, the landlord may evict the tenant. If the tenant has not paid their rent for a year and a half, landlords may be able to re-enter the premises without any formal notice or demand. It is important to note that notices must usually be in writing.

In commercial leases, landlords can also recover rent arrears by seizing tenant’s goods. To do so, the lease agreements must contain a clause allowing so and a warrant must be issued. No notice is required in issuing the warrant, though it must be prominently positioned on the premises. The goods should be seized by a process server and a reasonable attempt made to obtain a market value for them at auction.

The eviction and recovery process can be tricky to navigate. There are significant pitfalls if the process is not properly executed. To know your rights and what you can do, simply email us at info@straitslawyers.com or call at (08) 8410 9069 to arrange an appointment.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.