Commercial Rent Arrears Recovery   (CRAR)

CRAR is a legal option enabling the recovery of unpaid commercial rent, without having to go to Court.

The cost to the landlord is FREE,*** as our fees are collected from the tenant at the same time as the overdue rent.

Once the rent is overdue, and we are instructed by the landlord:

1.     We send an Enforcement Notice on the same day to the tenant, giving them 7 clear days to make payment.    The cost to  the tenant at that point is the rent owing, plus our fee of £75.  Please note that the number of days notice has been changed under Covid regulations, and is now currently 457 days notice required before action - not 7.

• Commercial Rent Arrears Recovery (CRAR) – The Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020 prevented landlords from using CRAR unless an amount of at least 90 days’ rent was due (it had previously been seven days or more). This was increased to at least 276 days' rent from 29 September 2020, and then 366 days' rent from 25 December 2020. It is now  457 days owing, and will increase to 554 days from 24th June 2021 or such other date as may be specified in regulations.

2.     If the tenant does not make payment, a certificated enforcement agent (bailiff) will visit the premises to take control of any suitable goods, which can be removed for auction if the rent is still not paid.   This visit will cost the tenant a minimum of £235 additional bailiffs fees.

3.     If the tenant still does not make payment, then the seized goods can be removed and sold at auction.  This will add bailiffs costs of an additional £110, plus storage, locksmiths and auctioneer's charges.

4.    In cases of multiple debts, once we have seized, and taken control of goods, this prevents any other bailiffs from taking control of the debtors stock or goods on behalf of other creditors.   Speed is often of the essence in these situations.

***In the event that the tenant is unable, or refuses to make payment, and does not have sufficient seized goods to cover the cost of removal and auction, then the landlord would be liable for the cost of any shortfall in auction fees.

This procedure is available to collect outstanding rent, and cannot legally include insurance and service charges.

Contact us for more information.