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CRAR Commercial Rent Arrears Recovery UK Bailiffs

What Is CRAR – Commercial Rent Arrears Recovery?

A Statutory Rent Recovery Procedure for Landlords

Commercial Rent Arrears Recovery (CRAR) is a statutory enforcement route available to landlords of commercial premises in England and Wales. It allows for the lawful recovery of unpaid rent without needing to pursue court action.

CRAR enables the landlord to instruct Certificated Enforcement Agents to take control of the tenant’s goods. UK Bailiffs ensures that each instruction is managed in strict compliance with the legislation, maintaining professionalism and clarity at each stage.

Legal Framework

CRAR was enacted through the Tribunals, Courts and Enforcement Act 2007. It replaced the former common law remedy known as distress for rent and introduced clearer procedural safeguards for both landlords and tenants.

CRAR Enforcement Team

Recovering Rent Arrears

Recover Unpaid Rent from Commercial Tenants Using CRAR

Landlords of commercial properties can use a statutory enforcement method to recover overdue rent — quickly and without involving solicitors or court proceedings.

What is CRAR?

Commercial Rent Arrears Recovery (CRAR) is a statutory process that lets landlords recover unpaid rent by appointing certificated enforcement agents.

  • No need for a court order
  • Applies only to business premises
  • Fast and fully compliant process

Who Can Use It?

  • You’re a landlord of a commercial unit
  • A written lease outlines the rent clearly
  • No residential part — unless separately let

What’s Covered?

This method allows recovery of pure rent only — it excludes service charges, interest, or other liabilities.

How Soon Can You Act?

Once rent is 7 days overdue, enforcement can begin. After serving notice, agents can attend the premises if payment isn’t made.

If Payment Isn’t Received

  • Enforcement agents attend the premises
  • Goods may be listed under a controlled goods agreement
  • Assets can be removed and sold if necessary

This is a landlord's legal right to collect unpaid rent directly — no court needed.

Why Choose UK Bailiffs?

  • Same-day action available
  • Nationwide enforcement
  • Our costs can be recovered from the tenant
  • Experienced, certified agents

Is a Solicitor Required?

No — simply instruct our agents and we’ll handle the entire process.

What You'll Need

  • Lease agreement
  • Summary of arrears
  • Tenant’s contact info

We’ll guide you every step of the way.

Trusted Nationwide

We’ve supported landlords and managing agents across the UK in recovering millions in unpaid rent.

Our CRAR Process

We operate this service swiftly and lawfully under Part 3 of the Tribunals, Courts and Enforcement Act 2007. Below is a clear breakdown of how our process works.

📄 Step-by-Step CRAR Procedure

1. Instruct Us Online: Submit our short form — it generates a compliant Warrant of Control automatically.

2. Initial Assessment: We confirm eligibility based on your lease and outstanding rent.

3. Notice of Enforcement: A 7-day Notice is served on the tenant, offering time to pay and avoid further action.

4. Enforcement Attendance: If payment isn’t received, our Certificated Enforcement Agents attend to take control of goods.

5. Sale of Goods: If needed, seized items are sold at auction to recover the rent owed.

6. Final Reporting: We provide a full report, including photographic evidence and recovery status.

UK Bailiffs CRAR
CRAR Process infographic

Pros and Cons of Using CRAR

This legally statuted service offers landlords a streamlined process to recover unpaid rent without going to court, but it also has limitations. Here's a breakdown:

Advantages
  • No court action required
  • Fast enforcement via Certificated Enforcement Agents
  • Costs can be passed to the tenant
  • Only applies to rent, avoiding broader debt disputes
  • Protects landlord rights under commercial lease terms
Disadvantages
  • Only available for commercial premises (no mixed-use)
  • Cannot recover service charges or insurance premiums
  • 7 clear days’ notice required before enforcement
  • Does not apply if tenant is insolvent
  • Tenant goods may have little resale value

CRAR Enforcement Timeline

Below is a typical timeline from instruction to enforcement under the CRAR process:

  • Day 0: Landlord instructs enforcement agent (e.g. UK Bailiffs ).
  • Day 1: Notice of Enforcement served to tenant — 7 clear days required.
  • Day 8: If payment is not made, enforcement agents attend the premises.
  • Same day or shortly after: Agents take control of goods under a Controlled Goods Agreement or remove goods for sale.
  • Within 7 days: Payment, settlement, or auction arrangement finalised.

Note: The “7 clear days” excludes Sundays and Bank Holidays.

CRAR and Tenant Insolvency

CRAR cannot be used against a tenant who is subject to formal insolvency proceedings. This includes:

  • Company voluntary arrangement (CVA)
  • Administration
  • Liquidation (compulsory or voluntary)
  • Bankruptcy (for sole traders)

Attempting CRAR while the tenant is protected by a moratorium or administration order can result in legal penalties. In these cases, landlords should seek specialist insolvency recovery advice or consider lease forfeiture as an alternative remedy.

Tip: Before issuing a CRAR notice, confirm the tenant’s insolvency status using Companies House, insolvency registers, or a credit check.

CRAR vs Lease Forfeiture: Comparison for Commercial Landlords

This table compares two key remedies available to commercial landlords when tenants fall into arrears: Commercial Rent Arrears Recovery (CRAR) and Lease Forfeiture.

Feature CRAR Lease Forfeiture
What is it? A legal procedure to seize tenant goods to recover rent arrears without court proceedings. The landlord re-enters the premises and terminates the lease due to rent arrears or breach of lease.
Legal Basis Tribunals, Courts and Enforcement Act 2007 Common law right + lease forfeiture clause
When Can It Be Used? Only for commercial leases with written terms. Rent must be 7+ days overdue. For breach of lease (commonly non-payment of rent). Must comply with peaceable re-entry rules.
What Can Be Recovered? Rent, interest and VAT only — not service charges or insurance. None — the lease is ended. You gain possession but not the arrears (unless pursued separately).
Speed 7 clear days’ notice must be served before attendance. Can be executed immediately if lease allows and peaceable re-entry is lawful.
Outcome Tenant remains in possession. Goods may be seized and sold to recover debt. Tenant loses possession. You regain the premises and may re-let.
Risk Level Low – follows regulated process. Medium to high – risk of unlawful re-entry if not handled correctly.
Ideal Use Case Landlord wants to recover arrears while keeping tenant in place. Landlord wants to terminate lease and regain control of property.
Not sure if CRAR is available to you?
Use our free Determination Tools for Landlords to check if Commercial Rent Arrears Recovery is legally applicable before taking action.

Instruction Form

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

Where instructions relate to Commercial Rent Arrears Recovery (CRAR), all instructions are subject to our CRAR Terms and Conditions of Instruction.

Once submitted, we will email you a copy of the Warrant for acceptance and then begin the process. We may also request further details as part of our due diligence procedures. If you have any questions regarding the instructions, please email our team at help@ukbailiffs.org.

If you are unsure whether or not you can use CRAR, please check our free Interactive CRAR Determination Tool.

FAQ

CRAR — Frequently Asked Questions

These FAQs explain CRAR at a high level. They are general information only and are not legal advice. If your matter is time-sensitive or contested, consider obtaining advice from your solicitor.

What is CRAR? Open

Commercial Rent Arrears Recovery (CRAR) is a statutory procedure introduced in April 2014 that replaced the former common law remedy known as distress for rent. It is a remedy that allows certain commercial rent arrears to be recovered by taking control of goods, without applying to the court for permission.

Note: CRAR is subject to specific qualifying conditions and notice requirements.

Do I need a court order to instruct enforcement agents under CRAR? Open

In general, CRAR does not require a court order to be obtained first. However, CRAR can only be used where the statutory requirements are met.

Under what circumstances can CRAR be used? Open

CRAR is intended for commercial premises and typically requires a written lease. If the premises are residential or mixed-use, CRAR may not be available and alternative recovery routes may be required.

CRAR generally applies to recovery of rent (and certain associated sums such as VAT and interest where applicable under the statutory framework). If you need to pursue other sums (for example, service charge or insurance rent), this is usually dealt with separately.

There are minimum arrears thresholds and timing rules. We will review the instruction information and supporting documents to confirm whether CRAR appears available.

What does “taking control of goods” mean? Open

Taking control of goods is the legal process by which a certificated enforcement agent secures goods belonging to the debtor, so that they can be used to recover the sums due if payment is not made.

If payment is not received, controlled goods may be sold in accordance with the applicable regulations, with proceeds applied toward the debt and statutory fees.

Are you required to give the tenant notice? Open

Yes. CRAR requires notice to be given before an enforcement visit takes place, subject to the rules in force at the time and any permitted exceptions.

As a general position, the tenant must receive at least 7 clear days’ notice in writing before enforcement under CRAR can proceed.

Where instructed and the documentation appears in order, we usually aim to issue the notice promptly (often the next working day), subject to operational checks and compliance requirements.

Can anyone take control of goods? Open

No. The regulations require that taking control of goods is carried out by a certificated enforcement agent where certification is required.

Our attending agents are certificated and experienced in commercial rent arrears recovery work.

Can I forfeit the lease if the tenant is unsuccessful under CRAR? Open

CRAR and forfeiture are separate remedies. In broad terms, taking steps that treat the lease as continuing can affect forfeiture options.

If forfeiture is being considered, we recommend that you obtain advice from your solicitor before taking action that could be treated as waiving forfeiture for that period.

When will I receive funds? Open

Where payment is recovered and cleared, client remittances are normally made to the nominated bank account promptly. As a general guide, this is typically within 2 working days of cleared funds being received, subject to reconciliation and compliance checks.

Do you set your own fees? Open

CRAR enforcement fees are prescribed by regulation. Where applicable, statutory fees are generally recoverable from the tenant/debtor in accordance with the regulations.

I want to cancel the instruction Open

If an instruction is cancelled or withdrawn after compliance steps have been taken, statutory fees and/or reasonable costs may remain payable in accordance with the regulations and the terms agreed with the instructing party. If you are considering cancellation, please contact us as early as possible so we can confirm the position based on the stage reached.