Commercial rent arrears

Commercial rent arrears recovery, CRAR, is the statutory route for the landlord of commercial premises to recover unpaid rent by taking control of the tenant's goods, without first going to court. It comes from Chapter 2 of Part 3 of the Tribunals, Courts and Enforcement Act 2007. The lease must be evidenced in writing, none of the premises can be let or occupied as a dwelling, and what is recovered is rent in the statutory sense: the amount payable for possession and use of the premises, with interest and VAT, but not service charges, rates, insurance, repairs or maintenance. The net unpaid rent has to be at least seven days' rent when the notice of enforcement is given and again when goods are first taken control of.

The notice of enforcement goes to the tenant first, not less than 14 clear days before goods are taken control of, and only a certificated enforcement agent can act on it. I hold that certificate in my own right and I am the authorised officer, so the instruction stays with me from the first notice to settlement or sale. Where there is a sub-tenant, a separate notice can require the sub-tenant to pay rent to you direct.

Most matters settle on the notice. Where they do not, goods are taken control of at the premises.