Understanding Commercial Rent Recovery in the UK
This guide explains how landlords can lawfully recover unpaid rent from commercial tenants under the CRAR (Commercial Rent Arrears Recovery) framework. We break down the legal process, timelines, and requirements to help you understand your rights and responsibilities.
CRAR is a statutory process that allows commercial landlords to recover rent arrears without court proceedings, provided strict legal conditions are met.
Key Conditions for Using CRAR
- The lease must be written and solely for commercial premises
- Rent must be at least 7 days overdue
- Only rent (not service charges or insurance) can be recovered under CRAR
- Landlords must use certificated enforcement agents
The CRAR Procedure Explained
- A 7-day Notice of Enforcement is served on the tenant
- If unpaid, enforcement agents may attend the premises
- Goods may be taken control of or removed for sale
- Proceeds from sale are used to offset the rent owed
This information is for general guidance only. For enforcement or to begin recovery, please visit our dedicated service page or seek legal advice.
- CRAR is for commercial leases only
- No court action is needed
- Only unpaid rent is enforceable
- 7-day notice is mandatory
Things You Might Not Know About CRAR (Commercial Rent Arrears Recovery)
Think you know how CRAR works? Whether you're a landlord, agent, or solicitor — here are 10 key facts you may not have come across… and number 10 may surprise you!
🏢 1. CRAR only applies to commercial premises
It can’t be used for residential or mixed-use premises. CRAR applies only to purely commercial leases.
[TCEA 2007, Sch 12, Para 3]
⚖️ 2. No court order is needed
CRAR lets landlords recover rent without going to court, as long as legal conditions are met.
[TCEA 2007, s.72]
💷 3. Only ‘pure rent’ is recoverable
CRAR only recovers basic rent, VAT, and interest. It excludes service charges and insurance.
[TCEA 2007, s.77]
📝 4. The lease must be in writing
CRAR is only available where a written lease
exists — not for licences or verbal agreements.
[TCEA 2007, s.76]
📨 5. At least 7 clear days’ notice is required
A Notice of Enforcement
must be served with at least 7 clear days (excluding Sundays & bank holidays).
[Taking Control of Goods Regs 2013, Reg 6]
🚫 6. Insolvency blocks CRAR
If the tenant is in administration, liquidation, or CVA, CRAR is blocked unless permission is granted.
[Insolvency Act 1986, Sch B1, Para 43]
👤 7. CRAR only targets the immediate tenant
CRAR only applies to the named tenant. But landlords can redirect rent from subtenants under strict rules.
[TCEA 2007, s.81]
🚐 8. Goods can be taken from the premises — or the highway
Agents can seize goods on the commercial premises or on the highway outside, like vans or equipment.
[Taking Control of Goods Regs 2013, Reg 12(2)(b)]
📋 9. Only Certificated Enforcement Agents can act
Landlords must instruct a Certificated Enforcement Agent
— they cannot carry out CRAR themselves.
[TCEA 2007, Sch 12, Para 3]
💰 10. It's a FREE , no-charge service (on most occasions) to the landlord
CRAR fees are added to the tenant’s debt — meaning landlords pay nothing
in most cases. It’s a FREE service
unless enforcement fails due to unmet conditions or the instruction is withdrawn early.
[Taking Control of Goods (Fees) Regs 2014]
CRAR – Frequently Asked Questions
CRAR is a statutory procedure allowing landlords of commercial properties to recover unpaid rent by taking control of a tenant's goods without a court order.
CRAR may be used when a written commercial lease exists, and at least 7 days of principal rent are overdue.
No. CRAR can be used without a court order as long as statutory requirements under the Tribunals, Courts and Enforcement Act 2007 are met.
Only premises that are wholly commercial. CRAR does not apply to residential or mixed-use premises.
At least 7 days’ worth of principal rent must be outstanding before the process can begin.
No. Only principal rent is recoverable under CRAR. Charges such as service fees, insurance, and VAT cannot be enforced using this method.
This is a formal notice issued by a certificated enforcement agent. It gives the tenant at least 7 clear days to respond before enforcement begins.
Only certificated enforcement agents may enforce CRAR. They must follow strict procedural rules under the Taking Control of Goods Regulations 2013.
Only goods belonging to the tenant that are not exempt (such as tools of the trade below a threshold value) and located at the commercial premises may be taken.
Improper use may result in liability for damages or legal claims. For example, attempting CRAR at residential premises or without correct notice breaches the regulations.
