Commercial Rent Arrears Recovery
Commercial landlords and their agents can normally recover rent arrears under CRAR (commercial rent arrears recovery).
With the enactment of the Tribunals, Courts and Enforcement Act 2007 in April 2014, distress for rent was replaced by CRAR - commercial rent arrears recovery. Section 72 allows a commercial landlord to use Schedule 12 (taking control of goods) of the TCE Act to recover rent payable under the lease from the tenant, without needing to go to court.
CRAR - only for commercial premises
CRAR may only be used for commercial premises. Where a premises has mixed commercial and residential use, the residential aspect must have a separate entrance and a separate lease, otherwise CRAR cannot be used.
CRAR can only be used to recover rent (and any interest and VAT) and only with a lease. Items not directly attributable to the tenant’s possession and use of the premises, such as services charges, are not recoverable through CRAR. There must also be a written lease in place and any contract or lease that seeks to amend or avoid the CRAR provisions will be void.
If you have a situation where using CRAR could help, please get in touch.
03303 203 399