Commercial Rent Arrears Recovery
Keep your tenant and recover payment
We provide a FREE recovery service that is tailored to suit your requirements. If your tenant is in arrears and you do not wish to forfeit the lease, use this quick and effective way to recover the arrears whilst keeping your tenant relationship.
You should only keep your tenant 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.
Dukes send a statutory “Notice of Enforcement” to the tenant on your behalf. This gives them a final chance to pay what they owe within the 7 days and will inform them that enforcement action will take place if they fail to pay their arrears within this time.
As a general rule we provide your 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.
- If your tenant responds
Depending on your instructions, we will request payment in full or will place your 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 tenant does not respond after the notice period ends
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.
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.
The ‘Notice of Enforcement’ binds the goods your 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.
Costs for commercial rent arrears recovery
All costs for a warrant of control are payable by the debtor (your tenant).
Getting the recovery started
To instruct Dukesto recover your commercial rent arrears, download our Warrant of control form.