Commercial Rent Arrears Recovery CRAR legislation is a legal process that allows landlords to recover unpaid rent from commercial tenants. In this blog post, we will delve into the CRAR process and explain how West Country Bailiffs can provide valuable assistance in dealing with rent arrears.
What is Commercial Rent Arrears Recovery CRAR Legislation?
Commercial Rent Arrears Recovery, commonly known as CRAR, is a statutory procedure introduced in the United Kingdom to help landlords recover unpaid rent from commercial tenants. It provides a legal framework for landlords to take control of a tenant’s goods and sell them to recover the outstanding rent.
1. What is Commercial Rent Arrears Recovery CRAR Legislation?
CRAR is a legal process that allows landlords of commercial properties to recover unpaid rent by instructing certificated enforcement agents to seize and sell the tenant’s goods. It is governed by the Tribunals, Courts and Enforcement Act 2007 and must follow a strict legal procedure.
2. When can CRAR be used?
CRAR can only be used when:
- The lease is for commercial premises only (not mixed-use or residential),
- There is a written lease in place, and
- Rent has been overdue for at least 7 days.
Only the principal rent, VAT, and interest can be recovered—not service charges or insurance contributions.
3. Is notice required before CRAR can begin?
Yes. A minimum of 7 clear days’ notice (excluding Sundays and Bank Holidays) must be served to the tenant before enforcement agents can attend the premises. This is known as the Notice of Enforcement, and it gives the tenant an opportunity to pay before further action is taken.
4. What happens if the tenant still doesn’t pay?
If no payment is received within the notice period, our certificated enforcement agents will attend the commercial premises to take control of goods. These goods may be removed and sold at auction to recover the rent owed.
5. Can CRAR be used alongside forfeiture?
No. CRAR and forfeiture cannot be used at the same time. If the lease has been forfeited (terminated), the landlord cannot then use CRAR to collect rent arrears. It’s important to choose the right remedy based on your goal—whether that’s recovering rent or regaining possession.
6. What if the tenant refuses entry or tries to hide goods?
Our enforcement agents are trained to deal with resistance professionally and within the bounds of the law. Entry must be through peaceable means, such as an unlocked door or open access. If the tenant attempts to remove or hide goods, legal action may be taken to prevent interference with the recovery process.
Understanding the CRAR Process – FAQ:
The CRAR process involves several important steps that landlords must follow to initiate and execute the recovery of unpaid rent. These steps include serving a Notice of Enforcement, allowing a specified period for payment, taking control of goods, and ultimately selling them to recover the outstanding rent.
How West Country Bailiffs Can Help:
At West Country Bailiffs, we specialise in providing professional assistance to landlords dealing with commercial rent arrears. Our team of experienced bailiffs understands the intricacies of the CRAR process and can guide you through each step, ensuring compliance with legal requirements.
– Expertise in CRAR: Our bailiffs have in-depth knowledge of Commercial rent Arrears CRAR legislation and regulations and can help you navigate the complexities of the process. We will ensure that all necessary legal requirements are met, minimizing the risk of complications or disputes.
– Notice of Enforcement: We can assist in preparing and serving the Notice of Enforcement, a crucial document that initiates the CRAR process. Our team will ensure that the notice is correctly drafted and delivered to the tenant, giving them the opportunity to settle the arrears within the specified timeframe.
– Taking Control of Goods: Once the notice period expires and the tenant fails to pay the outstanding rent, our bailiffs will take control of the tenant’s goods. We will carefully inventory and secure the goods, ensuring compliance with legal guidelines.
– Sale of Goods: In the event that the tenant does not settle the arrears, we can organize the sale of the seized goods. Our team will handle the entire process, from valuing the goods to conducting a legally compliant sale, with the aim of recovering the outstanding rent on your behalf.
Commercial Rent Arrears Recovery (CRAR) is a vital tool for landlords to recover unpaid rent from commercial tenants. West Country Bailiffs offers expert assistance throughout the CRAR process, ensuring that landlords can navigate the legal requirements effectively. If you require professional support in dealing with commercial rent arrears, contact West Country Bailiffs today for reliable and efficient service on 01803 895441 or by email to enforcement@westcountrybailiffs.co.uk
