Within our property enforcement team, we have a knowledgeable and professional team of commercial lease enforcement experts to assist property owners with Commercial Rent Arrears Recovery (CRAR).
We provide full national coverage and have dedicated enforcement agents throughout England and Wales.
Looking to recover rent from a commercial tenant?
How does the CRAR process work?
Stage 1: We send the tenant a formal Notice of Enforcement giving 7 clear days in which to pay the outstanding rent, together with charges payable under the CRAR regulations.
Stage 2: If the tenant does not pay after the expiry of this notice, our enforcement agents will visit the tenant at the address where the rent is due. At all times our enforcement agents will aim to take payment in full from the tenant on the first visit. Unless payment is made by cleared funds, the enforcement agents will take control of the tenant's goods and enter into a Controlled Goods Agreement (previously known as a Walking Possession Agreement). A detailed inventory is taken of the goods that have taken into control within the curtilage (area) of the lease, usually inside the building. Dependent upon the lease, this can also include car parking spaces or compound storage.
Stage 3: Where the tenant does not make payment, we would request the landlord's approval to remove the goods. Where this action is required, we will arrange the removal and sale. After attendance, we will send the landlord a written report of action taken or make contact by phone if urgent instructions are required.
Why instruct Chartsbridge to recover commercial rent?
- Fast turnaround time
- Certificated Enforcement Agents
- Tenant pays our fee
FAQs on CRAR
CRAR only applies to principal rent, VAT and interest (VAT and interest only if stated within the lease).
CRAR cannot be used to recover service charges, insurance premiums and rates. Landlords can explore alternative methods to recover these charges such as obtaining a County Court money judgment. Contact Chartsbridge should you require further assistance with regards the enforcement of money judgments and High Court enforcement thereafter.
Only goods owned by the tenant as stated within the lease can be seized under CRAR. This excludes goods owned by a sub-tenant or other third-party.
Tools of the Trade (up to an aggregate value of £1,350) are exempt from CRAR.
Landlords must instruct Certificated Enforcement Agents to use CRAR as they have the powers to take control of goods and sell them via public auction.
CRAR can be used where there is a current and written lease in place that is solely for commercial use.
CRAR cannot be used for the recovery of rent arrears if: -
- The lease is for residential or ‘mixed-use’ premises,
- The rent arrears cannot be calculated with complete accuracy and certainty,
- The lease has come to an end.