Tenants rights: what is relief from forfeiture?

Tenant rights

If a tenant falls into arrears or breaches the terms of their lease, you are within your rights as a commercial landlord to end the lease and re-enter the property. However, evicted tenants also have the right to petition the courts for 'relief from forfeiture'. If the courts rule in favour, the eviction is overturned, the lease reinstated and the tenant has the right to return to the property.

When can tenants apply for relief from forfeiture?

If tenants act quickly, then courts often rule in their favour. This will usually mean that the tenant must remedy any 'breaches of covenant', for example by repairing any damage caused that broke terms of the lease, paying any rent arrears and paying the landlord’s costs. The Common Law Procedure Act states that tenants should apply for relief within six months of being evicted.  

Sometimes, however, tenants may be granted relief from forfeiture because a landlord has failed to follow the proper eviction process, or has acted illegally. In more extreme cases where, for example, a tenant has been unwell or has been struggling financially and is unable to seek professional advice, courts may even grant relief after this six-month window of 'reasonable promptitude' has passed.

How to avoid relief from forfeiture 

When evicting a tenant, you must follow the law to the letter. If there has been a breach of the lease terms, it's vital that you issue the tenant with a Section 146 Notice. This should include details of the nature of the breach, if and how it may be remedied, as well as any demands for compensation. Hold on to any correspondence exchanged during this time in case you're required to prove you made these efforts at a later date.

If the issue is rent arrears, proceed carefully. Demanding payment of rent arrears and using CRAR to recoup unpaid rent can mean that you waive your right to forfeit. In other words, enforcing repayment can make it difficult to evict tenants, so it's important to weigh up your enforcement options carefully.

Where to find help

When you're deciding what action to take, it pays to have a certificated Enforcement Agent on hand. As well as being legally authorised to evict tenants and recoup debts using CRAR, Enforcement Agents are experienced in handling tricky situations and can advise you on how best to proceed. For more information, contact Dukes Bailiffs today.