If you are owed over 7 days of rent from a commercial tenant, you may be eligible to recover their goods to the sum of the owed money. The CRAR process can only be used to recover rent from a commercial property and there must be a written lease to act as evidence.
Only goods belonging to the tenant can be seized in order to repay the rent arrears, which can include co-owned property but not goods belonging to a third party altogether. Property directly linked to trading in the business may not be recovered up to a value of £1,350, nor goods that are in use when the enforcement officer enters the commercial premises. Essential items cannot be repossessed.
How are they repossessed?
An enforcement officer can enter the premises through any open entrance, although cannot prize open a window or door if not already open. Following entry into the commercial property, the enforcement officer can repossess goods in a variety of ways; they could secure them on the premises itself, by locking them away to avoid removal before selling the items can occur, or can remove them from the premises immediately and secure them elsewhere.
Controlled Goods Agreement
The tenant may wish to enter into a ‘Controlled Goods Agreement’ which is an inventory of items that can be sold in order to cover the rent arrears. After the agreement, the tenant has the option to repay the rent in an official payment plan rather than through asset recovery.
Seven days’ notice
Once the goods have been sized or are under control of the enforcement officer, the assets must be valued within seven days and then sold or disposed of in order to acquire the best possible price for them. When storing the items prior to them being sold, the goods must be stored safely and securely, to keep them in a suitable condition for re-sale.
If you are owed rent arrears from a commercial tenant and would like more information on the commercial rent arrears recovery procedure, please get in touch with the team at Able Investigations. Our highly experienced enforcement officers are happy to assist, so call today on 0845 370 7401 or email us here.