Calculating the cost of the eviction process
Eviction Process
When you have problem tenants falling into arrears, it can be hard to know the best course of action. Deciding whether to evict tenants or recover the debt under Commercial Rent Arrears Recovery (CRAR) can often come down to cost, both in terms of up-front outlay and the cost of debt write-off. To help you decide, let's take a look at some of the key costs.
Who is liable for the eviction process?
Unlike CRAR, the cost of an eviction process is borne by the landlord rather than the tenant. This means that Enforcement Agents must either be paid upfront or given the right to deduct their fee from the monies recouped as part of any additional enforcement action against the tenant.
Have you done the groundwork?
Before a tenant can be evicted, you need to assess their circumstances to establish your legal right to reclaim the property. Usually, an eviction will come after a lease has expired, but if you believe a tenant has broken the terms of their lease then you will need proof. That means knowing which clause has been breached and having the paperwork, pictures or other evidence that prove it definitively. This comes at a cost, usually in company time, but you may also need legal advice from a solicitor.
What are the average enforcement agent costs?
Forfeiting a lease involves a range of actions from applying to the courts for a warrant through to the cost of a lock change. It's often better to team up with an Enforcement Agent who manages the whole eviction process, rather than taking on some of these steps yourself, as complications can quickly increase costs. Dukes Bailiffs can evict tenants within 24 hours of instruction and charges £350+VAT plus a locksmith's fee for forfeiting a commercial lease, which will amount to approximately £570 (depending on the lock).
Are there additional charges?
Sometimes there's more to be done, such as removing a tenant's equipment. To do this, you'll need a Torts Notice and a removal team. For the whole service, you can expect to pay £115 per Enforcement Agent per hour (including VAT). So the final price will depend on how much equipment the tenant has.
If you want a clear idea of the cost of evicting a tenant, contact Dukes Bailiffs today.
