Can I use CRAR to recover rent from a subtenant?

When you let a commercial property, it is important to maintain a regular cash flow through regular rent payments. However, there are situations when the tenants fail to pay, and in this case, recovering what you are owed isn’t always straightforward.

Subtenants

One of the situations that landlords often find themselves in is recovering rent from a subtenant. In 2014, regulations changed for this kind of situation, and the landlord’s common law of distress against tenants was abolished. Instead, the new regulations offer commercial landlords a summary remedy that they can use without having to take court action.

CRAR

The new standard procedure that came into force on the 6th April 2014 is called Commercial Rent Arrears Recovery (CRAR), and it allows landlords of commercial premises to take control of their property and recover rent arrears by selling the goods tenants left in the property. CRAR is a direct replacement for the law of distress and applies to both new and existing commercial leases. Moreover, landlords can exercise CRAR even if their lease does not specifically mention it.

So, if you want to recover rent arrears from a subtenant, you can do so under CRAR. You will need to serve a notice to the subtenant, which will take effect within 14 clear days after it has been served.

You need to keep in mind, however, that CRAR cannot be exercised if the lease has already come to an end, unless: the goods were taken before the lease ended, the lease has not been forfeited, the lease ended less than six months ago, you are the same landlord that signed the initial contract, the tenant is still in possession, or the tenant was granted a new commercial lease.

How can Able Investigations help you?

At Able Investigations, we have the knowledge and means to take control of goods belonging to commercial tenants if you are owed rent. Whether you are looking for a way to negotiate a short-term payment arrangement with your tenant in order to recover the full amount owed, or if you want to seize the goods the tenants left behind on site, we can be of help.

By opting to seize the goods on site to get your full rent, you allow your tenant to continue to trade. You should, however, keep in mind that your tenant will also be liable for our fees, so you will be able to recover the full rent amount without any additional costs.

In the event your tenant has left the property, we can be of help as well. By using the services of High Court Enforcement Officers, we are able to assist with commercial rent arrears recovery. Call us now on 0845 370 7501 and we will help you find the best solution for your problem.

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