PROPERTY & LAND

Commercial Rent Arrears Recovery

Commercial Rent Arrears Recovery

The Tribunals, Courts and Enforcement Act 2007 provides commercial landlords with a statutory right to recover rent arrears through a structured enforcement procedure. The process, brought into force via the Taking Control of Goods Regulations 2013, is designed to be simpler, more transparent, and to balance the rights of landlords and tenants.

 

When CRAR Can Be Used

  • Rent must be at least seven days in arrears at the same time notice is served and at the time goods are seized.
  • The lease must be a commercial lease. Residential or part-residential properties are excluded.
  • CRAR may only be enforced at the leased premises. Landlords cannot instruct enforcement on goods located at other properties. Any arrears owed in those situations must be pursued through standard Debt Collection.
  • CRAR cannot be used if the lease has been ended by Forfeiture.
  • Enforcement is permitted on goods belonging to the tenant before the tenancy ended, or if the lease has ended and the landlord is entitled to immediate reversion, provided it ended less than six months ago.
  • Only rent, interest, and VAT may be recovered. Any other costs are not recoverable under CRAR.

 

The CRAR Procedure

Only certificated enforcement agents or other authorised individuals may seize or sell goods.

The enforcement agent must serve a Notice of Enforcement on the tenant seven days before enforcement action.

Once goods are seized, the agent must provide the tenant with a Notice of Sale, containing a detailed inventory within seven days.

CRAR provides landlord with a lawful, structured method to recover arrears while ensuring tenants are given clear notice and certain protections under the law.

 

 

If you’re familiar with the process, simply instruct us below.
If not, get in touch with our friendly team who are on hand to answer your questions and get you started.

 

Instruct Us

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