When do I call an enforcement agency about commercial rent arrears?

Rent Arrears

In a mixed market, cash flow is the key to success in commercial property. Ideally, this comes from a solid relationship with tenants, but it’s also prudent to prepare for commercial tenants falling into arrears. So when is the right time to contact Enforcement Agents?

When you’re planning ahead

Some of your rights require forward planning. In particular, it’s vital to ensure that your lease specifies a clear end date, the exact amount of rent owed, the date it’s payable and the risk of enforcement action if payments are missed. 

The clear clauses make it much easier to recoup unpaid rent under Commercial Rent Arrears Recovery (CRAR) legislation and to evict problem tenants, but there are lots of other ways to protect your investment. A trusted Enforcement Agent can help put them in place.

When tenants are a month in arrears

If a tenant is over a month in arrears and you’re confident they have the funds or assets to cover the debt, you can start CRAR. A certificated Enforcement Agent like Dukes Bailiffs can start rent arrears court proceedings by requesting permission from the courts to undertake the debt recovery process.

Once appointed, the Enforcement Agent can obtain permission to recoup the debt in as little as 24 hours. The tenant is then given seven days notice, after which money or assets can be seized.

When problem tenants are evasive

There are lots of reasons a tenant might fall into arrears, which is why it’s so important to partner with an Enforcement Agent that shares your values. With years of experience in mediation, Dukes Bailiffs are experts in handling sensitive situations where tenants may be in financial difficulty.

If they are simply avoiding their debt, Dukes uses the latest technology to track absconded tenants. We can even identify associated persons who may have information or be equally liable for their debts and ascertain their ability to pay.

When problem tenants will not leave

If tenants are in breach of their lease, or are refusing to leave at the end of the tenancy, an Enforcement Agent can begin forfeiture of commercial lease. Using either CRAR legislation or a Warrant to Forfeit, we can begin rent arrears eviction and take back control of your property in as little as 24 hours.

For more information about how Dukes can help you handle problem tenants, contact us today.