As of the 6 April 2014, Commercial Rent Arrears Recovery regulations changed the way that landlords can collect their rent arrears.
Commercial Rent Arrears Recovery (CRAR) only applies to leases of commercial premises, and can only be used if the lease is in writing. It does not apply to residential premises or where part of the premises is used for residential purposes.
Subject to the new changes in the law, your tenant must be at least 7 days in arrears before CRAR can be used. After this period, you have two options:
KEEP YOUR TENANT AND RECover payment
This is the best option if you’re confident that your tenant has got sufficient goods and funds to pay what you’re owed, and you want to continue to do business with them.
Under the CRAR regulations we are bound to give your tenant 7 clear days’ notice before taking control of their goods. This is known as a “Notice of Enforcement”. This allows your tenant time to raise money to cover the arrears, before we start the process of removing any goods from the leased property.
We understand that tenants can’t always find the funds straight away, so as a general rule we provide your tenant 14 clear days’ notice before taking control of their goods. If you would prefer us to stick to just 7 days, let us know when you get in touch.
To find out more information or to instruct Dukes, please call our Enforcement team on 01785 825 519 or download a Warrant of Control form below.
FORFEIT A LEASE AND RETRIEVE YOUR BUILDING
Under the Commercial Rent Arrears Recovery legislation, you can effectively repossess your premises by forfeiting the lease of commercial tenants who are in arrears with their rent.
Tenant Eviction, formerly known as forfeiture of lease, should be considered if:
- You believe the tenant doesn't have the funds to pay what you are owed;
- You believe the tenant doesn't have a sufficient amount of goods in the property to cover any debts;
- The tenant has become a "problem tenant" and you have another potential tenant lined up
By law, before considering this action, there must be a recognised Landlord & Tenant relationship – a lease agreement will suffice ; There must be land or premises for which rent is payable ; There must be certainty as to the amount of rent owed and length of the lease; There must be a clause in the lease that states that enforcement action will be taken if rent falls into arrears.
To instruct Dukes please call 01785 825 519 or complete our downloadable Warrant to Forfeit form below.
Once you’ve submitted your form, we’ll take action within 24 hours. Our specialist team will then take care of the entire tenant eviction process, from changing the locks to helping with the clearance of the premises. No notice of enforcement is necessary.
Stop your tenants falling into Rent Arrears
Prevention is always better than a cure. Use the link below to read our free tips about what to consider before taking on new tenants.