Commercial rent arrears recovery (CRAR) is a specified process for the recovery of pure rent. This is instructed in writing by the landlord without the intervention of the courts.
What is CRAR?
CRAR is set out in legislation under the Tribunals Courts and Enforcement Act 2007. The landlord of the commercial property can instruct an enforcement agent to recover outstanding rent. The minimum amount of net unpaid rent must be an amount equal to 7 days rent. Should the rent not be paid in the early stage of the process, an enforcement agent will attend the demised premise to take control of goods.
How to instruct us
Complete the form here, upload the necessary documents.
Once these have been received our enforcement team will start the process on your behalf.
What happens next
The team will start working on your case immediately it is received. They will prepare the necessary paperwork for the notice of enforcement to be sent to the debtor at the demised premises. Upon sending the notice the Compliance stage will commence. All notices of enforcement are sent through Royal Mail and a proof of posting obtained and kept on file.
Where can enforcement take place?
Enforcement of CRAR can only take place at the demised premises where it is used solely for commercial purposes. It cannot be mixed use i.e. residential and commercial under the same lease.
As set out in the Tribunals, Courts and Enforcement Act 2007 every debtor must be notified that enforcement action could take place. Legislation states that a Notice of Enforcement (Compliance letter) is sent to the debtor notifying them of;
- The value of the debt
- Costs and interest
- Sufficient details of the debt including the claimant and relevant reference numbers
- How to make payment
- The date and time the payment must be made by to prevent enforcement action
- Costs of further enforcement action
- Details of debt support agencies and charities
The letter must give a minimum of 7 clear days not including Sundays and bank holidays before an enforcement agent can take control of the debtors goods.
Where payment is made directly to the client, the compliance fee of £75.00 is payable to us upon demand.
When managing a CRAR case we understand the delicate balance of the Landlord Tenant relationship. Our agents respect they will often attend a premise that is a working business and as such take proactive steps to not cause embarrassment to the business or tier customers. Consideration is given to the type of attire they wear and how to use body worn cameras appropriately.
Where payment of the debt is not made an enforcement agent will attend the demised address to take control of the debtors’ goods. Depending on the circumstances the enforcement agent may remove the goods to sell or may come to an agreement with the debtor to pay instalments through a structured Controlled Goods Agreement (CGA).
Should this agreement be breached the debtor can incur additional costs and the enforcement agent can return to remove the controlled goods.
Keeping you up to date
Throughout the entire case you will be provided timely updates as it progresses. Where significant events occur, the team will be in touch with you to discuss them and provide further information
Other ancillary debts
Other unpaid debts associated with the demised premises cannot be recovered using the CRAR process i.e. insurance or service charges. We can put you in touch with our panel of solicitors who can advise on the recovery of these debts.