Commercial Rent Arrears Recovery
Keeping Your Tenant and Recovering the Arrears
Commercial rent arrears recovery is an effective recovery method providing the commercial landlord is confident the commercial tenant has sufficient goods and funds to clear the rent arrears.
With 25 years’ experience, Dukes understands that not all circumstances are the same, that’s why we provide a FREE, tailored commercial rent arrears recovery (CRAR) service that meets the requirements of each individual client.
Our CRAR service is reliable, quick and effective, ensuring your landlord / tenant relationship remains in tact.
Getting Commercial Rent Arrears Recovery Started
The CRAR Process
Step 1 (notice period)
Under the CRAR regulations we are bound to give your commercial tenant 7 clear days’ notice before taking control of their goods to recover payment. This is known as a “Notice of Enforcement”. This allows your commercial tenant time to raise money to cover the rent arrears, before we start the process of removing any goods from the leased property.
The ‘Notice of Enforcement’ binds the goods your commercial tenant owns in their hands – this means it is a criminal offence for them to sell or remove goods located on the leased premises while rent remains unpaid.
As a general rule we provide your commercial tenant 14 clear days’ notice before taking control of their goods. However, if you would prefer us to stick to 7 days, no problem, just let us know when you get in touch.
Step 2 (after the notice period ends)
If your commerical tenant responds:
Depending on your instructions, we will request payment in full or will place your commercial tenant on a short-term payment plan (STPP). If they enter a STPP they will be required to sign a ‘Controlled Goods Agreement’. 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 paid. Any breach of the payment plan may result in additional visits to the property to remove goods for sale.
If your commercial tenant does not respond:
Enforcement Agents will visit the premises to inventory the tenant’s goods ensuring that there is sufficient value to cover the debt outstanding. During the visit the Agents will request payment in full. If the tenant cannot pay, our Agents will use their discretion to determine if extra time should be given to make payment on the condition that a ‘Controlled Goods Agreement’ is signed.
In the absence of either of the above, the tenant’s goods may be removed and stored until payment is received. If payment is not made, the goods will be sold at the next public auction.
Costs To Recover Commercial Rent Arrears
All costs for a warrant of control are payable by the debtor (your tenant).