Commercial property law · England and Wales
A source-led guide to Commercial Rent Arrears Recovery: when landlords can use it, what rent qualifies, the current notice period, which goods may be controlled and the risks involving forfeiture or insolvency.
This page explains the legal framework for Commercial Rent Arrears Recovery. To instruct certificated enforcement agents to recover qualifying commercial rent arrears, use our dedicated CRAR Bailiffs service page.
Direct answer
Commercial Rent Arrears Recovery (CRAR) is the statutory procedure that allows a landlord of qualifying commercial premises to recover qualifying rent by instructing a certificated enforcement agent to take control of the tenant's goods. A court judgment is not normally required.
CRAR applies only where its statutory conditions are met. It is principally concerned with rent payable for possession and use of wholly commercial premises. It does not generally recover service charges, insurance, rates, repairs or utilities.
CRAR is a rent-recovery remedy — it does not itself terminate the lease or recover possession of the premises.
Legal foundation: Part 3, Chapter 2 of the Tribunals, Courts and Enforcement Act 2007 and the taking-control-of-goods procedure in Schedule 12.
Statutory conditions
The lease, premises, occupation, arrears and entitlement must be checked together. Meeting one condition does not cure a failure elsewhere.
Section 76
For CRAR, rent is the amount payable under the lease for possession and use of the premises. Describing another charge as “rent” in the lease does not automatically make it recoverable through CRAR.
| Usually within CRAR | Usually outside CRAR | Practical treatment |
|---|---|---|
| Principal rent for possession and use | Service charges | Separate excluded charges from the CRAR balance. |
| Applicable VAT on qualifying rent | Insurance premiums | Check the VAT treatment against the rent statement. |
| Contractual interest on qualifying rent | Rates, repairs, utilities and maintenance | Do not relabel ancillary debts as principal rent. |
| Rent properly apportioned to the calculation date | Other contractual or unliquidated sums | Recalculate before notice and again before taking control. |
Before issuing notice, UK Bailiffs separates principal rent, VAT, contractual interest and excluded charges. A ledger that combines rent, insurance and service charge without a reliable breakdown should be corrected before statutory action begins.
Threshold and notice
The minimum debt is a sum equal to at least seven days' rent. The rent does not have to have been overdue for seven days. It is a value test, not an ageing requirement.
For this threshold, net unpaid rent excludes interest, VAT and permitted deductions. It must be satisfied immediately before notice is given and again immediately before goods are first taken into control.
For relevant notices from 1 May 2026, the general minimum Notice of Enforcement period is 14 clear days before goods may ordinarily be taken into control.
Sundays, bank holidays, Good Friday and Christmas Day are excluded when calculating the minimum period. A court may shorten the period where there is a real risk that goods will be moved to avoid enforcement.
From instruction to outcome
Check the signed lease, parties, demise, occupation, rent statement, VAT, interest, deductions, termination and insolvency information.
The notice must contain the prescribed information and provide the required compliance period before goods may ordinarily be controlled.
The tenant may pay or make meaningful proposals before attendance and the addition of further statutory fees.
Check that the lease, occupation and seven-days' net-rent threshold remain satisfied immediately before taking control.
A certificated enforcement agent may attend the commercial premises and take control of the tenant's non-exempt goods in accordance with Schedule 12 and the Regulations.
The outcome may be payment, an agreed arrangement, a Controlled Goods Agreement or lawful removal and sale after the required notices.
Schedule 12 protections
CRAR is directed at goods belonging to the tenant. Genuine third-party goods, leased or hired equipment and assets outside the tenant's beneficial ownership should not be treated as the tenant's goods.
Evidence of ownership may be requested and disputed claims can require court determination.
The familiar £1,350 tools-of-the-trade exemption is not a blanket protection for all equipment used by a company.
It concerns items personally used by the debtor in employment, business, trade, study or education and is most likely to be relevant where the debtor is an individual or sole trader.
Goods are ordinarily taken into control between 6am and 9pm, subject to statutory exceptions, the premises' trading hours and any court order.
CRAR does not provide a general power to force entry into commercial premises on a first attendance.
The agent must observe restrictions concerning children, vulnerable people, goods in use, excessive seizure and exempt goods.
Only sufficient goods should be controlled to cover the recoverable sum and statutory costs.
Current statutory charges
These are the prescribed non-High Court taking-control-of-goods fees under the amended framework for relevant new instructions from 1 May 2026.
| Stage | Fixed fee | Additional percentage fee | When it applies |
|---|---|---|---|
| Compliance | £79 | None | Instruction, notice and compliance-stage work. |
| Enforcement | £247 | 7.5% of the sum above £1,900 | First enforcement attendance at the premises. |
| Sale or disposal | £116 | 7.5% of the sum above £1,900 | Where controlled goods proceed to sale or disposal. |
Properly incurred disbursements may also be recoverable where permitted by the Fees Regulations. Statutory fees are normally recoverable from the tenant, but withdrawal, inaccurate instructions or excluded sums may create client liability under the enforcement company's terms.
Choose the remedy deliberately
| Issue | Why it matters | Recommended response |
|---|---|---|
| Lease has ended | CRAR normally ceases when the lease ends, subject to limited continuing and post-lease provisions. | Check section 79 and obtain advice before relying on a post-lease exception. |
| Landlord wants possession | CRAR treats the lease as continuing and may waive an existing right to forfeit for a known breach. | Choose between payment and possession before demanding rent or instructing CRAR. |
| Tenant insolvency | Administration, liquidation, moratoriums or restructuring may restrict enforcement without consent or permission. | Identify the procedure and appointment date immediately; pause where required. |
| Sub-tenant in occupation | Section 81 may permit a superior landlord to require a sub-tenant to pay rent directly where CRAR is exercisable. | Use the separate statutory notice; it takes effect after 14 clear days. |
| Debt is disputed | CRAR is not a substitute for determining uncertain entitlement, lease interpretation or an unliquidated claim. | Refer the legal dispute for advice before enforcement. |
CRAR is a rent-recovery remedy. Forfeiture is a possession remedy. The decision should be made before conduct — such as demanding or accepting rent — affects the landlord's options. UK Bailiffs refers uncertain waiver, insolvency and entitlement questions for legal advice rather than treating them as routine enforcement decisions.
Related commercial landlord guidance
The CRAR rules sit within a wider commercial-landlord decision. These pages cover the connected recovery, possession and specialist routes.
Primary law
Commercial landlord questions
Operational review
Craig Whinray is Director of UK Bailiff Services Ltd and a Certificated Enforcement Agent with more than 20 years' frontline enforcement experience, including senior national enforcement operations.
This guide has been reviewed against operational CRAR practice, documentary requirements and the statutory taking-control process. It is not a substitute for independent legal advice where entitlement, insolvency, waiver, lease construction or another material issue is disputed or uncertain.
Editorial owner: UK Bailiff Services Ltd · Jurisdiction: England and Wales · Last reviewed 3 October 2026 · Review following material legal change and at least annually.Need operational CRAR enforcement?
This page explains the CRAR rules. If you have qualifying commercial rent arrears, send the signed lease and current rent statement for an initial eligibility review and instruction. If you are deciding between rent recovery and possession, use our CRAR vs forfeiture guide before acting.
