CRAR Solicitors - Commercial Rent Arrears Solutions

Our team of debt recovery solicitors is also experienced in dealing with possession claims and, together with the support of the dispute resolution department if necessary, can assist in even the most complicated of matters.

We act for private landlords and businesses with tenants on site as well as a number of property management companies handling volume debts across multiple sites.

If you have a property portfolio and would like assistance with recovery of rent or possession please contact us to discuss your requirements. With offices in Leeds, Sheffield and York, we can offer our commercial rent arrears recovery services either on a face-to-face basis, by post or email. Call us on 0333 323 5292, send us an email or fill in the enquiry form.

Quick Guide to Commercial Rent Arrears Recovery (CRAR)

From 6 April 2014 the long-standing remedy of distress in relation to commercial rent arrears has been replaced by CRAR (Commercial Rent Arrears Recovery) as set out in the Taking Control of Goods Regulations 2013 (TCGR 2013).

The most significant points to note are as follows:

  • CRAR can only be used against tenants occupying “commercial premises” under a “lease”
    • This specifically excludes any property where part of the premises is lawfully used for residential purposes
    • A “lease” must be evidenced in writing
  • Notice of Enforcement must be given
    • Not less than seven clear days before the enforcement agent takes control of the debtor’s goods
  • Can be used in respect of pure rent arrears only
    • This is the amount payable under a lease together with any VAT or interest
    • “Rent” does not include any sum in respect of rates, council tax, services, repairs, maintenance or other ancillary matters (whether or not called “rent” in the lease)
  • CRAR can only be exercised to recover rent that is certain or capable of being calculated with certainty and which has become due and payable before notice of enforcement is given
    • The net unpaid rent must exceed a minimum amount prescribed in the TCGR 2013. The minimum amount of net unpaid rent is currently set at an amount equal to seven days rent.
  • The head landlord may serve notice on the sub-tenant requiring them to pay their rent directly to the superior landlord. But must give 14 days notice of this requirement
  • Enforcement Officer/bailiffs powers
    • May take control of goods only if they are goods of the tenant (this is as previously)
    • Cannot take control of goods used by the tenant for the purposes of his/her trade – exemption for tools of the trade now limited to £1,350
    • Cannot take control of goods which have a value which is more than the debt
    • Cannot take control of items in use by the debtor if this is likely to lead to a breach of the peace.

You may want to consider alternative methods of recovery such as a Winding Up Petition.

Contact us

For more information about our debt recovery services speak to a member of our team today. We have offices across Yorkshire, in Sheffield, York and Leeds, and our expert team are waiting to take your call. Find the number you need on our contact page.

Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.

Why Choose Lupton Fawcett?

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