What is Rent Arrears Recovery (CRAR)?
Commercial rent arrears recovery is a process undertaken using certificated enforcement agents, they will enter the property and remove items to cover the rent owed.
CRAR can only be used for commercial property and it is only used to recover rent and interest and VAT, you cannot use it to recover service charges or any other costs. You must have a lease in place to use CRAR.
What notice needs to be given to tenants?
Tenants need to be given 7 days’ notice by the landlord that CRAR is to be undertaken, this gives the tenant reasonable time to pay the rent they owe.
The CRAR process
Write to the tenant giving 7 days’ notice of enforcement
One of our certificated enforcement agents will attend the property, they can enter through an open or unlocked door or other normal means on any day of the week between 6am and 9pm or the tenant’s normal hours of business.
The enforcement agent will take only good belonging to the tenant, they cannot remove items with a greater value than the amount owed. The enforcement agent must give the tenant a value for the items seized. Tools of the trade to the value of £1,350 are exempt from being seized.
If the items go to sale, they must be sold at a public auction and the tenant must be given seven clear days’ notice.
HCE CRAR services
The service we offer for CRAR is fast and responsive, ensuring you receive the money you’re owed quickly and efficiently.
The service is completely free (unless you instruct us to withdraw) as the tenant pays the costs of enforcement.
Our enforcement agents are fully trained in the complexities of Commercial Rent Arrears Recovery and always act in the landlord’s interests but strive to maintain the landlord-tenant relationship.
We will issue the notice of enforcement required under the regulations within 24 hours and often, depending on the timing of instruction, on the same day.