If you are a commercial landlord who is struggling with tenants who have not paid their rent, then you are likely to be looking at the steps you need to take to recover monies owed to you. Using the CRAR (Commercial Rent Arrears Recovery) process to retrieve outstanding rent means that you don’t have to go to court.
Using CRAR to retrieve rent
CRAR replaced the landlords’ right of distress in April 2014, and is the procedure that landlords must follow to retrieve outstanding rent from their commercial tenants. A court order is not required when using CRAR procedures, but Certificated enforcement agent must be used throughout the process.
What debt does CRAR cover?
Landlords can only use CRAR to recover rent arrears. Those needing to recover additional fees, including insurances, service charges, and other rates that the tenant usually pays, then a landlord will need a County Court Judgement.
When can you begin CRAR proceedings?
CRAR can only be implemented when the money owed is more than the value of 7 days rent and if there is a written lease in place. Upon instructing a Certificated enforcement agent, the process can begin immediately with a letter being sent to the tenant that gives 7 clear days of notice that an enforcement agent will be entering the property. If payment is not made within these 7 days of notice, an enforcement officer will be able to visit the property to seize goods, which can then be sold at auction if payment is not agreed.
Able Investigations can help commercial landlords with their commercial rent arrears recovery process as Certificated enforcement agents. If you require assistance with recovering outstanding rent on your commercial premises, then speak to a member of our team on 0845 370 7401, or email [email protected].