Michaelmas quarter day is September 29th, and it brings with it the due date for the quarter's rent. A commercial tenant skirting payment is rarely a one-off, and Commercial Rent Arrears Recovery (CRAR) is usually the first thing landlords look at, because it's the main route to commercial rent recovery without court proceedings.
The rules changed this year. Since 1 May 2026, a notice of enforcement has to give 14 clear days instead of seven, meaning you won't have an enforcement agent at the premises until late October, even if you serve notice right away. This blog explains how the CRAR process works now, what it costs, what it can't recover, and what the new notice period does to your timings this quarter.
What is CRAR?
CRAR lets a commercial landlord recover rent arrears by taking control of goods belonging to the tenant, without going to court for a judgment first. It came into force on 6 April 2014 under the Tribunals, Courts and Enforcement Act 2007, replacing the old common law right of distress.
Only certificated enforcement agents can carry it out, and acting without a certificate is a criminal offence. You can check anyone you're thinking of instructing on the Ministry of Justice's certificated bailiff register.
CRAR covers commercial properties in England and Wales and only rent owed by commercial tenants.
What changed for CRAR in 2026?
The Taking Control of Goods (Miscellaneous Amendments) Regulations 2026 brought in the first changes to the regime since it started.
What is the notice period for CRAR?
Notice of enforcement used to be 7 clear days. It's now 14. Sundays, bank holidays, Good Friday and Christmas Day don't count towards it.
The notice itself has changed too. It now has to point the tenant towards free debt advice and explain that they can ask for 28 clear days where a debt advice provider requests it. That extension excludes business debt, so it's unlikely to apply to commercial rent arrears, but it appears on the form regardless.
Notice of sale is still seven clear days, and a notice diverting rent from a sub-tenant still takes effect 14 clear days post-service.
CRAR costs have risen
Statutory fees went up by 5%, the first rise since April 2014. The threshold for the percentage fee moved from £1,500 to £1,900.
• Compliance stage: £79, with no percentage fee
• Enforcement stage: £247, plus 7.5% of the sum above £1,900
• Sale or disposal stage: £116, plus 7.5% of the sum above £1,900
These figures exclude VAT and are recoverable from the tenant. They represent the statutory fees only: an enforcement agent will quote separately for the instruction itself.
When can a commercial landlord use CRAR?
Before you can use CRAR, your situation has to meet four requirements:
1. The lease is evidenced in writing
2. The premises are wholly commercial
3. The rent is already due and payable, and the amount is certain
4. At least seven days' rent is outstanding after any permitted deductions
Regarding the latter point, seven days' rent is an amount, not a waiting period. On a quarter day, rent clears the threshold the moment it goes unpaid.
Can I use CRAR if there’s a flat above the shop?
If any part of the demised premises is let or occupied as a dwelling, you can't use CRAR on the property at all, and there's no apportioning it between the commercial and residential parts, with one exception: the residential occupation also breaches the lease or a superior lease. In this case, CRAR can be used.
If you're unsure what your lease allows, our guide on evicting a commercial tenant without a lease covers the wider problem of unclear documentation.
What can’t CRAR recover?
CRAR covers the principal rent, any interest payable on it under the lease, and VAT on either. Interest and VAT are recoverable, though they don't count towards the seven days' minimum.
It doesn't cover service charges, insurance, business rates, repairs, maintenance or other ancillary sums. Section 76 excludes them whether or not the lease calls them rent, so reserving service charge as rent in the drafting won't bring it within CRAR. You'll need to pursue those separately.
Claim too much and the whole exercise is open to challenge, so check the figures carefully before the notice goes out.
The CRAR process, step by step
1. Instruct a certificated enforcement agent. You give written authority identifying the agent, the commercial premises, the amount owed and the period it covers.
2. Notice of enforcement. The agent serves the prescribed notice giving at least 14 clear days.
3. Attendance. If the arrears are still outstanding, enforcement agents will attend and take control of goods.
4. Controlled goods agreement. In most cases the tenant signs a controlled goods agreement, rather than surrendering their goods. More on this below.
5. Notice of sale. Seven clear days' notice before anything is sold.
6. Sale. The proceeds clear the arrears and the fees.
Very few instructions get as far as step six. The notice of enforcement usually prompts payment, because most commercial tenants would rather clear the arrears than lose the stock they trade with.
Controlled goods agreements
A controlled goods agreement lists what the agent has taken control of and leaves the goods at the premises, so the tenant carries on trading while they pay. If they breach it, the agent can come back and remove them.
What enforcement agents can and can’t do when employing CRAR
Control of goods can only be taken between 6am and 9pm, or during trading hours if the premises are open for business.
Agents can't force entry under CRAR. Entry has to be peaceable, through a door or the usual means of access. High Court enforcement is different, and forced entry to business premises is permitted there in some cases.
The enforcement agents can only seize goods belonging to the tenant. Third party property, hire purchase items and leased equipment are all excluded, along with tools and equipment the tenant needs for their trade (up to £1,350).
How long will CRAR take after quarter day?
1. Rent falls due, Michaelmas quarter day: Tuesday 29 September 2026
2. Earliest notice of enforcement: Wednesday 30 September
3. 14 clear days expire (excluding Sundays): Friday 16 October
4. Earliest attendance: Monday 19 October
5. Earliest sale, seven clear days later: Wednesday 28 October
The UK quarter days are Lady Day on 25 March, Midsummer on 24 June, Michaelmas on 29 September, and Christmas on 25 December. Under the old seven day notice period, that same instruction would have reached the attendance stage ten days earlier. If you have reason to suspect non-payment, it is worth planning ahead, instead of delaying and pushing the CRAR process into November.
Our certificated enforcement officers cover England and Wales and can serve the notice of enforcement, attend the premises, and put a controlled goods agreement in place on your behalf. In most cases the arrears are settled long before anything reaches a sale. If you want timings mapped against the new notice period and your own lease dates, get in touch for a free consultation via the form on our site, or by calling 0345 366 0000 (24/7 line).
How much does CRAR cost in practice?
Take £6,000 of arrears. The compliance stage adds £79. If the agent has to attend, the enforcement stage adds £247 plus 7.5% of the £4,100 above the threshold, so £307.50. That's £633.50 recoverable from the tenant before anything is sold.
The higher threshold helps on larger debts, because the percentage fee bites on a smaller slice of them, but a landlord chasing £1,400 pays the same £247 enforcement fee as one chasing £1,900, so the fees swallow a much bigger share of what you get back if you seek less arrears. Run the numbers before you instruct an enforcement agent, so you know what to expect.
CRAR vs. forfeiture
Using CRAR treats the lease as continuing, and that waives your right to forfeit for those arrears. In other words, you can't recover the rent through CRAR and then change the locks over the same debt.
So, it comes down to what you want. If the tenant is viable and you want the income, CRAR is the better route. If you want the property back, look at forfeiting the commercial lease instead. Our guide to regaining possession legally sets out how to do this. Forfeiture is legally complex, so always take advice before acting.
How can I use CRAR if the tenants’ goods have low value?
CRAR is only as good as what's on the premises, and a serviced office tenant with leased equipment may have almost nothing worth selling.
Where that's the case, a notice to a sub-tenant can divert their rent to you directly. You might also draw on a rent deposit, pursue a guarantor or former tenant, or bring a county court claim. Forfeiture is also still an option.
Before you instruct, it’s best to have an idea what is on the site and what it’s worth. An enforcement agent can tell you from their first visit.
Frequently asked questions about CRAR
Can I still use CRAR once the lease has ended?
CRAR stays available for up to six months on rent that fell due before the lease ended, as long as the lease didn't end by forfeiture, the same tenant is still in possession, and you still hold the immediate reversion.
Does CRAR apply across the UK?
CRAR covers England and Wales, not Scotland or Northern Ireland
Do I need a solicitor to use CRAR?
Not for the recovery itself, which is a large part of why landlords use it. However, we do recommend you take legal advice on whether your lease gives you a right to forfeit, or where the tenant claims a set-off against the rent.
What are some common mistakes when exercising CRAR?
• Serving notice before the rent is actually due and payable
• Including service charge, insurance, or rates in the sum claimed
• Overlooking a residential element (e.g. the tenant’s flat above the shop)
• Instructing an enforcement officer who isn't certificated
• Accepting rent after deciding to forfeit
• Planning around the old seven day notice period
Get CRAR right this quarter
Able Investigations have been recovering commercial rent arrears since 1993. Our certificated enforcement officers handle the whole process, from the notice of enforcement through to a controlled goods agreement or sale, and we'll tell you if CRAR isn't the right remedy before you commit. We're based in Bristol and work with landlords, managing agents and property managers across England and Wales, including portfolios with several units falling due on the same quarter day.
If your tenant hasn't paid this quarter, call us on 0345 366 0000 or use our enquiry form for a free, no-commitment consultation. You can also read more about our CRAR service and our wider enforcement services.
