Commercial Rent Arrears Recovery - Further Info

Below we explain the processes for instructing UK Bailiff Services to collect your tenants outstanding rent.

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UK Bailiffs CRAR

Commercial Rent Arrears Recovery (CRAR)

Legislation exists under the Taking Control of Goods Regulations 2013 to allow a landlord of a commercial property to instruct bailiffs (enforcement agents) to collect rent arrears without the need to go to Court.

The powers under these regulations are identical to those powers Enforcement Agents have in collecting Council Tax and Business Rates.

The Enforcement agents who attend under CRAR are legally allowed to remove your tenants goods under this legislation.

The cost to the landlord is usually zero.  All enforcement fees are passed on to the tenant.

The process is explained below, but if you have any questions prior to instructing us, please get intouch. 

Stage 1:

Instruct us Online

  • You instruct us online HERE
  • Once we have received the forms, we will check details and generate a Warrant of Control.  This allows us to legally collect your debt.
  • We will email you a copy and await approval to proceed.
  • We will then send you a secure link to our Case Management System where you will be able to see all case updates.

Stage 2: 

Compliance Stage

  • As soon as we have received your instructions and approval, we will send out a Notice of Enforcement to your tenant - You can see an example HERE
  • This is a legal requirement and we have to give your tenant 7 clear days in which to respond.
  • If your tenant has not paid the outstanding debt including our fees by the end of this period, we will contact you to authorise Stage 3

Stage 3:

Enforcement Stage

  • A Certificated Enforcement Agent (Bailiff) will attend your tenants demise premises and look at recovering full payment or taking control of their goods.
  • If the business is closed at the time of visit, we will schedule up to 3 more visits including out of hours.
  • If the tenant is unwilling/ unable to pay, we will look at removing goods to pay for the debt.  We will consult with you if it reaches this point.

Stage 4:

Case Conclusion

  • If we have been successful in recovering full payment and our fees, we will send you a report and payment within 48 hours of us receiving cleared funds.
  • If we have secured a payment arrangement with your tenant we will continue to monitor payments until the debt and fees are recovered.
  • If we have been unsuccessful, we will contact you to discuss further options.

Contact A CRAR recovery manger

FAQs

  • 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. 



    As Landlord you instruct ‘enforcement agents’ (formerly known as bailiffs) to collect the rent or take control of goods.

  • Do I need to get a Court Order?

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

  • Under what circumstances can CRAR be used?

    It 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 them 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 send the letter out on the day we take instruction from you.

  • 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.

  • Can I forfeit the lease if you are unsuccessful?

    Not in that quarter.  By exercising CRAR you are effectively agreeing continuation of lease.  



    If you are unsure which option is best, speak to our recovery team.

  • When will I get my money?

    All cleared funds less fees will be paid into your nominated bank on the same day.

  • How much do you charge?

    All fees are set by the Ministry of Justice (see link below) and are passed on to your tenant.



    If we are successful then you will have nothing to pay.


    If we are unsuccessful then all you will pay is £75 plus VAT. 


    If you agree a separate arrangement with the tenant or cancel the instruction after we have attended then you may be liable for all enforcement fees and costs applied at that point.