COMMERCIAL RENT ARREARS RECOVERY EXPERTS
Quick and professional CRAR service
Our Certificated Enforcement Agents can recover your commercial rent arrears quickly, efficiently and free of charge to you.
Our Agents are highly experienced and will be professional in all of their dealings with the tenant, meaning you can rely on us to recover your rent arrears whilst maintaining the client / tenant relationship.
Recover your rent arrears within 7 days
When a tenant fails to meet their rental agreements, you can recover your arrears by using Certificated Enforcement Agents regardless of whether your lease makes reference to this as a recovery method.
Our CRAR recovery service looks like this:
Upon receipt of your instruction, we will write to your tenant advising that the debt has been passed to us to collect. Our letter, named ‘Notice of Enforcement’, will set out our intention to recover the unpaid arrears, giving the tenant 7 clear days’ to make payment. Depending on your requirements, we will request full payment or will agree a Short-Term Payment Plan (STPP).
The ‘Notice of Enforcement’ will bind the goods that your commercial tenant owns, meaning, upon receipt, it will be a criminal offence for them to sell or remove goods, located on the leased premises, while rent remains unpaid.
If the tenant enters a STPP they will be required to sign a Controlled Goods Agreement to secure the goods on site should they be unable to adhere to the arrangement. Once signed, we will attend the premises to take an inventory of your tenant’s goods. These goods will be required to remain on the premises, under our control, until the total debt is repaid. Any breach of the payment plan may result in additional visits to the property to remove goods for sale.
Sending an Enforcement Agent to the premises to recover the unpaid rent
On the 8th day, if your tenant has not responded to the 'Notice of Enforcement', will we send a certificated Enforcement Agent to the premises to collect the arrears in full. If the tenant cannot make payment, our Agent will use their discretion to determine whether extra time should be given for payment or whether a STPP is more appropriate.
In the event that the tenant does not make payment, or adhere to their STPP, the tenant’s goods will be removed and stored until payment is received. If payment is still not made, the goods will be sold at the next public auction and the value of the arrears will be remitted to you on the following day.
CRAR vs Commercial forfeiture
You have the right to recover unpaid pure rents once the rent becomes overdue. Commercial rent arrears recovery is an effective option if you are confident your tenant has sufficient goods or funds to clear the arrears. If your tenant does not have the goods or funds, you should consider repossession / forfeiture of the commercial property.
CRAR can be exercised only by Certificated Enforcement Agents. This recovery method can be used regardless of whether it is referenced in the terms of the lease.
Requirements for CRAR
Lease must be in existence
Landlords must have in their possession and supply evidence of a written lease or tenancy at will where rents are demanded from the tenant with certainty with no recent amendments to terms of payment.
Rent must be outstanding
The principle rent must be outstanding for a minimum period of at least 7 days rent. Usually the arrears is outside the clause expressed in your lease.
Only principle rent can be recovered
Rents recoverable only include commercial rent, interest and VAT payable under a written lease. Other such charges (service charges, insurance, etc.) must be omitted from the net unpaid rent.
Commercial property only
The lease must not cover mixed use properties combining commercial and residential usage. However, properties that include a residential usage but are separate either physically or by way of a separate lease, you may use the CRAR process.
Recover your rent arrears with confidence
All fees and costs for a recovering commercial rent arrears are payable by the Tenant.
See breakdown of costs
To exercise CRAR as your recovery method, please complete the online form below or download our PDF instruction if you wish to print and scan it back to us at enforcement@dukeslimited.co.uk