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What is Commercial Rent Arrears Recovery?

12 March 2021

Commercial Rent Arrears Recovery (CRAR) refers to the statutory procedure a landlord must follow in order to recover rent arrears and other sums due under the lease from former tenants and their guarantors.

We provide swift recovery processes in accordance with the Commercial Rent Arrears Recovery (CRAR) Taking Control of Goods Regulations 2013. This is free to the landowner.  We recognise that the creditors and our clients' reputation is important and always act in a manner to safeguard their reputation.

You can instruct us for commercial rent arrears recovery online

How does the Commercial Rent Arrears Recovery procedure work?

As a rule, only landlords of commercial premises can use Commercial Rent Arrears Recovery. A minimum 7 days' rent needs to be outstanding before any action can be taken and there must also be a lease in writing for the statutory procedure to begin.

What is The Commercial Rent Arrears Recovery Act?

The Commercial Rent Arrears Recovery procedure is detailed in section 72 of the Tribunals, Courts and Enforcement Act 2007 which covers the types of rent than can be recovered and procedures relevant to the use of enforcement agents.

What is The Procedure for Collecting Commercial Rent Arrears?

The procedure for enforcement involves filling out a Warrant of Control form. The enforcement agent will then issue a seven-day notice to the tenant and, if required, may then enter the property to take control of goods for satisfaction of the outstanding debt.

Can I Collect Commercial Rent Arrears Using Bailiffs?

If you have a minimum of 7 days’ rent overdue you can immediately issue a Commercial Rent Arrears Recovery Authorisation to instruct enforcement agents (bailiffs) to act in your interest to collect outstanding arrears. The process is straightforward and can be completed online. 

How much does it cost to collect commercial rent arrears using bailiffs?

A fixed fee is permitted for each stage of the Commercial Rent Arrears Recovery process. This includes the compliance stage, enforcement stage and sale stage and in some circumstances. In some cases, this cost is recoverable against the debtor.

How long does it take Collect Commercial Rent Arrears?

At the point of instruction, aim to complete a CRAR within fewer than 55 days by sending notices by Royal Mail’s recorded delivery and if required completing up to 3 visits or more to the debtor's address using our nationwide network of enforcement agencies.