When repossession is the right approach: A guide to effective eviction
Repossession; tenant rights; how to evict a tenant
When a tenant has broken the terms of their lease by failing to pay rent, there are two ways to solve the problem. You can issue a Warrant of Control to recover rent arrears, or end the lease early through repossession. Pursuing rent arrears may seem the easier approach but, unfortunately, circumstances can be complicated. Although the landlord bears the associated costs, in some cases, eviction and repossession are actually the most economical choices.
Eviction vs. recovery
Before considering how you will evict a tenant, and before filling in a N323 form to ask for a Warrant of Control, ask yourself:
- Does the tenant often fail to pay rent?
- Has the tenant breached any other terms of the lease, such as causing damage to the premises?
- Would the cost of recovering rent arrears outweigh the amount of rent owed?
- Have you contacted any guarantors named on the lease who are obliged to cover arrears owed by the tenant?
- If your premises became vacant, would it be relatively easy to find a new tenant?
If you can answer ‘yes’ to one or more of the questions above, it's likely that evicting the tenant would be the faster and more effective than pursuing their outstanding debt.
Obstruction of the CRAR process
With the Commercial Rent Arrears Recovery (CRAR) procedure you can recover back-rent without ending the lease. A Warrant of Control lets Enforcement Agents enter the premises to secure money or goods that can pay off the debt. Your tenant will be given 7 days notice that this will happen. While this might spur them on to pay you before the Agents arrive, if they're unscrupulous it gives them time to hide valuables and obstruct Agents on the day. If you suspect this is the action your tenants might take, you may prefer to move directly to eviction.
How to evict a tenant
If you're dealing with a difficult tenant who regularly breaks terms of the lease, or if you're confident your premises can be re-let quickly, repossession can be an effective solution. Eviction can be a speedy process so it's worth working with professional Agents who are well informed about tenant rights.
If you're considering evicting a commercial tenant or need help with repossession, contact Duke's Bailiffs to discuss how we can help.
"