CRAR Bailiffs  | Commercial Rent Arrears Recovery | Rent Arrears | Free Service

Bailiffs Can Recover Commercial Rent Using CRAR!

Bailiffs can recover rent arrears from commercial tenants using CRAR!


Landlords can now instruct certificated bailiffs to take control of tenants goods without a Court Order!


There is no charge to landlords* All fees are added to the tenants debt.



Instruct UK Bailiffs
Commercial Rent Arrears Recovery

Our Certificated Enforcement Agents (Bailiffs) will attend your rental property and collect your commercial tenants outstanding rent arrears - usually at no cost to the landlord*

Commercial Rent Arrears Recovery (CRAR) is a statutory process in the UK that allows landlords to recover rent from commercial tenants


CRAR enables landlords to instruct enforcement agents to seize goods from the tenant's premises to recover the debt. UK Bailiffs provides a professional and efficient CRAR service, ensuring landlords can recover outstanding rent while complying with legal requirements.

Overview

Introduced under the Tribunals, Courts and Enforcement Act 2007, CRAR replaced the ancient common law remedy of "distress for rent." It allows landlords of commercial properties to take control of a tenant's goods without going to court, provided certain conditions are met. CRAR is a non-court procedure, making it a quick and cost-effective solution for landlords dealing with rent arrears.

Recovery Team

Our CRAR Process


  1. Instruct us online - our online form takes a few minutes to complete and generates an automated Warrant.
  2. Initial Assessment: UK Bailiffs conducts a review of the lease agreement and outstanding rent to confirm eligibility for CRAR.
  3. Notice of Enforcement: A 7-day Notice of Enforcement is issued to the tenant, giving them an opportunity to pay the arrears before enforcement action is taken.
  4. Enforcement Action: If the tenant does not settle the arrears, UK Bailiffs' enforcement agents attend the premises to take control of goods, in accordance with the regulations set out in the Taking Control of Goods (Fees) Regulations 2014.
  5. Sale of Goods: If payment is not made, the seized goods may be sold at auction to recover the debt.
  6. Detailed Reporting: Full documentation and photographic evidence are provided throughout the process to ensure transparency and compliance.

Advantages of Using CRAR


  • No Court Involvement: CRAR is a non-court procedure, making it faster and less costly than litigation.
  • Efficient Debt Recovery: Provides landlords with a streamlined method for recovering rent arrears.
  • Legal Compliance: Ensures all actions are taken in accordance with UK legislation, minimizing the risk of legal disputes.


Legislation Governing CRAR


  • Tribunals, Courts and Enforcement Act 2007: Establishes the legal framework for CRAR, replacing common law distress for rent.
  • Taking Control of Goods Regulations 2013: Outlines the procedures for enforcement agents when taking control of goods.
  • Taking Control of Goods (Fees) Regulations 2014: Specifies the fee structure for enforcement actions.


Legal Team
UK Bailiffs CRAR team

* The instructing client / landlord may be invoiced for unrecovered enforcement fees if payment is made directly to the client and/or the case is withdrawn.

VAT on CRAR Enforcement Fees – What You Need to Know

Recent guidance from HMRC and the HCEOA affects how VAT is handled on Commercial Rent Arrears Recovery (CRAR) enforcement fees:

For Non-VAT Registered Landlords

The tenant (debtor) is responsible for paying VAT in addition to the enforcement fees.
Example: If the enforcement fee is £310, the tenant would pay £372 – that includes £62 VAT.

For VAT Registered Landlords

The tenant pays the enforcement fee (e.g., £310) directly to UK Bailiffs. Upon receiving this payment, UK Bailiffs will issue a VAT invoice for £62.
Once you pay the VAT, you can reclaim it from HMRC through your normal VAT return process.

UK Bailiffs adheres strictly to these regulations, ensuring that all enforcement actions are lawful and carried out with professionalism.


INSTRUCTION FORM


Completing the form does not constitute a contract or acceptance of the instruction.


Once submitted, we will email you a copy of the Warrant for acceptance and then we will begin the process. We may also request further details as part of our due diligence procedures. If you have any questions in relation to the instructions, please email us HERE or phone 03301331818


If you are unsure whether or not you can use CRAR then please check our free INTERACTIVE CRAR DETERMINATION TOOL


Questions and Answers?

  • What is CRAR

    Commercial Rent Arrears Recovery replaced Common Law Distress for Rent in April 2014.


    CRAR is a self help remedy and as such does not require leave from the Court. 


    A landlord can instruct enforcement agents (formerly known as bailiffs) to collect the rent or take control of goods.

  • Do I need a Court Order to instruct bailiffs to collect rent??

    No.  CRAR is a self help remedy and as such does not require leave from the Court. 

  • Under what circumstances can CRAR be used?

    CRAR may only be used on commercial premises and there must be a written lease in place. (If the premises are mixed use or residential use, you will need to obtain a judgment to recover arrears)


    CRAR may only be used to recover rent, interest and VAT. ( If you need to recover other charges such as insurance or service charges, we can help separately).


    The rent must be at least seven days in arrears and the rent owed must be for the value of at least 7 days’ rent.


    The Enforcement Agent (Bailiff) must give the tenant at least 7 days’ notice (excluding Sundays and bank holidays) that he is exercising his right to use CRAR. 


    The rent must still be unpaid at the time the notice is served, as well as immediately before any goods are seized.


    The notice must be served, either by post, hand, fax and electronic communications such as email. Notice will be valid for 12 months.

  • What does Taking Control of Goods mean?

    A Certificated agent will attend your tenants property and take control (seize) of internal and external assets.



    If payment is not received then these goods can be sold at auction to recover money.

  • Are you required to give the tenant notice?

    Previous regulations (Distress for Rent) provided the element of surprise. With no prior notice, the bailiff could turn up and seize your tenants goods. 


    By contrast, under the new regulations of CRAR, we must give the tenant at least 7 clear days notice in writing.


    We will usually send the letter out on the next working day after we have received your instruction.

  • Can anyone take Control of Goods?

    Regulations state that only a Certificate Enforcement Agent may take Control of Goods.


    All of our Agents are Certificated and experienced in collecting Commercial rent arrears.

  • Can I forfeit the lease if you are unsuccessful?

    Not in that quarter/ rent period..  


    By exercising CRAR you are effectively agreeing continuation of lease. 

  • When will I get my money?

    All cleared funds less fees will be paid into your nominated bank witthin 2 working days.

  • Do you set your own fees?

    All fees are set by the Ministry of Justice  and are passed on to your tenant.

  • I want to cancel the instruction*

     If the Client receives payment directly, cancels, or withdraws an instruction, or if the debtor absconds before instruction, the Client is liable for UKB’s full statutory fees, payable within 7 days

Contact A Recovery Specialist

Commercial Rent Arrears Recovery (CRAR) Section 73 Tribunal Courts and Enforcement Act 2007