What is CRAR?
Commercial Rent Arrears Recovery (CRAR) is the legal remedy that enables an Enforcement Agent to collect rent owed to a commercial landlord by taking control of goods from a commercial property. A commercial landlord can instruct a Certificated Enforcement Agent to carry out the CRAR procedure without the need for a court hearing.
Commercial Rent Arrears Recovery is free of costs to the landlord as all enforcement fees are added to the rent arrears for collection.
West Country Bailiffs are experts in Commercial Rent Arrears Recovery and are able to carry out the procedure in a legally compliant manner ensuring the relationship between landlord and tenant is not damaged.
Our highly experienced agents are equipped with body worn CCTV that ensures our interaction is recorded and safeguards our client against any future claims.
The Stages of CRAR
Commercial rent arrears recovery is completed in three stages known as compliance, enforcement, and sale stages.
Compliance
During the compliance stage the tenant is sent a notice of enforcement that allows 7 days to make payment.
At this stage the only enforcement fee payable by the tenant is £75 plus VAT
Enforcement
If the tenant fails to make payment, we will allocate the case to our Enforcement Agents who will attend the property to take control of goods and if necessary remove them to be sold to cover the arrears.
Fees at the enforcement stage are again payable by the tenant and are set in law.
For arrears under £1,500 – £235 plus VAT
For arrears over £1,500 – £235 plus 7.5% of the arrears minus the first £1,500.
Sale and Disposal
If the tenant fails to make payment after goods have been taken into control, the landlord is able to instruct us to sell the goods to recover the outstanding arrears and sale fees.
The fees associated are set out in law and are recoverable from the commercial tenant which means there is no cost for CRAR payable by the landlord.
Points To Consider
It is important that the landlord considers whether CRAR is the most suitable method for recovery of arrears:
- Only applies to landlords of commercial properties and is not available to residential landlords.
- Can only be used to collect rent arrears and would not include other charges such as a service charge or insurance payment.
- Can only be carried out by a Certificated Enforcement Agent
Commercial Rent Arrears Recovery (CRAR) – FAQ
1. What is Commercial Rent Arrears Recovery (CRAR)?
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.
As CRAR is a Free service to the landlord, instructing West Country Bailiffs to collect your commercial rent couldn’t be easier. With over 20 years combined experience, West Country bailiffs are a leading provider of Commercial Rent Arrears Recovery (CRAR).
We cover all areas Cornwall, Devon, Somerset and Dorset including Penzance, Truro, Plymouth, Torquay, Exeter, Taunton, Weston-super-mare, Bridgewater and Bristol. Contact us today on 01803 895441 to speak with an enforcement manager on how we can assist or email us to enforcement@westcountrybailiffs.co.uk. Further information on our Commercial Rent Arrears Recovery (CRAR) service can be found on our website https://westcountrybailiffs.co.uk/commercial-rent-arrears-recovery/
