Case Snapshot: £18,750 Commercial Rent Arrears Recovered In Just 12 Days

In commercial property management, cash flow is vital for landlords. When tenants fall behind on rent, it can lead to serious challenges. This case study showcases how a commercial retail landlord successfully recovered £18,750 in rent arrears in just 12 days, all while maintaining a strong business relationship.

The Challenge

A retail landlord faced a significant issue: their tenant, situated in a prime high-street location, had racked up three months of unpaid rent totalling £18,750, including VAT. The landlord aimed for a quick and lawful recovery of the outstanding amount, all while hoping to keep the commercial relationship with the tenant intact.

Our Process

Eligibility Check

We began our process with an eligibility check. We confirmed the premises were purely commercial, that rent was the only debt owed, and that a formal written lease was in place. This essential step laid the groundwork for an effective recovery process.

7-Day Enforcement Notice

We then issued a 7-day enforcement notice, as stipulated by the Tribunals, Courts & Enforcement Act 2007, Schedule 12. This notice formally alerted the tenant about the outstanding arrears and outlined the potential consequences of continued non-payment. This created urgency for the tenant to act.

Engagement Period

After delivering the enforcement notice, we provided the tenant with the full statutory period for settling the debt or discussing repayment. This engagement phase was critical for fostering open communication and demonstrating our willingness to collaborate for a resolution.

Enforcement Attendance

On day 8, our Certificated Enforcement Agents visited the premises. Their presence added weight to the situation and encouraged the tenant to fulfil their obligations.

Resolution

By day 12, the tenant paid the full £18,750 to avoid the loss and sale of goods. This fast resolution not only recovered the entire amount but also permitted the tenant to continue their operations under the original lease, preserving a valuable commercial relationship.

Results

The results were outstanding. The landlord recovered the full arrears in under two weeks, successfully sidestepping lengthy court proceedings that could have further strained the relationship. The tenant was able to keep operating from the high-street unit, benefiting both parties.

This case underscores the importance of a structured, lawful approach to recovering commercial rent arrears. By adhering to a clear process and ensuring open lines of communication, landlords can manage their cash flow effectively while sustaining essential tenant relationships.

For landlords facing similar challenges, understanding the legal framework and engaging professional services can lead to successful recoveries, just as this case demonstrates.