Instruct Us
Commercial Rent Arrears Recovery (CRAR)

Statutory Recovery of Commercial Rent Arrears

Commercial Rent Arrears Recovery (CRAR) is a statutory enforcement procedure available to landlords of commercial premises in England and Wales, enabling recovery of outstanding rent through controlled enforcement action.

UK Bailiffs delivers CRAR instructions with a focus on compliance, control and defensibility — ensuring every stage is lawfully executed, fully documented and professionally managed from instruction through to resolution.

Instruct UK Bailiffs Call 0330 133 1818
Commercial Rent Arrears Recovery enforcement by UK Bailiffs

Controlled statutory enforcement for commercial landlords

Our approach to CRAR is structured, compliant and outcome-focused, giving landlords and professional clients confidence that recovery action is being handled lawfully, carefully and with proper oversight throughout.

Professional Oversight

Experienced enforcement specialists managing each instruction with structure, clarity and legal care.

Statutory Process

CRAR is exercised within a defined legal framework for the recovery of qualifying commercial rent arrears.

Court Certificated Bailiffs

Enforcement excersised by Enforcement Agents without the need of a Court Order.

Defensible Approach

Documented, compliant action designed to protect client position while pursuing effective recovery.

What is CRAR?

Commercial Rent Arrears Recovery (CRAR) is a statutory process that allows landlords of commercial premises to recover qualifying rent arrears by taking control of goods, without requiring a court order at the outset.

Introduced in April 2014, CRAR replaced the former remedy of distress for rent and operates within a structured legal framework. It applies only where specific conditions are met, including the nature of the lease, the type of premises and the amount of rent outstanding.

In practice, CRAR is most effective where there are clear rent arrears and ongoing commercial occupation, allowing enforcement agents to engage directly with the tenant and seek resolution before escalation becomes necessary.

Why Landlords Use CRAR — and What are its Limits

CRAR is a strong statutory remedy for recovering commercial rent arrears, but it is not universal. Used correctly, it can be fast, commercially effective and procedurally clear. Used in the wrong circumstances, it may be restricted or unsuitable.

Where CRAR works well

  • No court application is needed to begin enforcement.
  • It can usually be deployed quickly through certificated enforcement agents.
  • Enforcement fees are generally recoverable from the tenant under the statutory regime.
  • It focuses on principal rent, reducing argument over wider contractual issues.
  • It can sit alongside wider landlord strategy under the lease.

Where caution is needed

  • It applies only to qualifying rent arrears at purely commercial premises.
  • It does not generally extend to service charges, insurance rent or other sums.
  • Notice requirements apply before attendance can take place.
  • Formal insolvency can restrict, complicate or prevent use of CRAR.
  • In some sectors, goods on site may have limited resale value despite apparent stock volume.

Typical CRAR timeline

Each case differs, but a standard instruction often follows a broadly similar structure:

  • Instruction received: papers reviewed and suitability for CRAR confirmed.
  • Notice of Enforcement served: the statutory notice period must then run before attendance.
  • Attendance: if payment has not been made, enforcement agents attend the premises.
  • Outcome on attendance: payment may be secured, a Controlled Goods Agreement entered into, or goods taken into control where justified.
  • Post-attendance resolution: matters are then concluded by payment, arrangement, or further enforcement steps where necessary.

Important: the statutory notice period is calculated using clear days, so timing should always be checked carefully before attendance is planned.

CRAR and insolvency risk

Particular caution is required where the tenant is, or may be, subject to formal insolvency proceedings. Administration, liquidation, CVAs and personal insolvency can all materially affect enforcement options.

In those cases, CRAR may be restricted, stayed, commercially unhelpful or unavailable, and the correct strategy may instead involve reviewing alternative remedies such as lease forfeiture or a wider recovery plan.

Practical tip: before serving a CRAR notice, it is sensible to check the tenant’s status through Companies House, the Insolvency Register and any current credit intelligence available.

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 the process is managed from instruction through to resolution.

Step-by-Step CRAR Procedure

1. Instruction: Submit our short online form. This generates compliant documentation and initiates the process immediately.

2. Assessment: We review the lease, rent position, and eligibility to ensure CRAR can be exercised lawfully.

3. Notice of Enforcement: A statutory 7-day Notice is served, providing the tenant with an opportunity to settle.

4. Enforcement Attendance: If unpaid, Certificated Enforcement Agents attend to take control of goods.

5. Sale / Resolution: Goods may be secured or sold where required to recover outstanding rent.

6. Reporting: Full reporting is provided, including photographic evidence and outcome summary.

⭐ Instruct UK Bailiffs 💷 Fees Calculator
UK Bailiffs CRAR

In the majority of CRAR instructions, matters are resolved through payment in full or a negotiated arrangement after engagement with the tenant. Removal of goods is comparatively rare and is usually considered only where there has been a clear refusal to pay or meaningful engagement has broken down.

Ownership of Goods and Third-Party Claims

A common concern with CRAR is whether stock or equipment on site may later be said to belong to a third party. The position is straightforward: CRAR only applies to goods of the debtor, and where ownership is genuinely disputed there is a clear statutory process for dealing with that issue.

How ownership is approached on site

CRAR is exercised through the statutory taking control of goods framework in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 and the Taking Control of Goods Regulations 2013.

An enforcement agent may only take control of goods of the debtor. In practice, that means there must be a clear and reasonable basis for treating the goods on site as belonging to the tenant at the time enforcement action is taken.

That assessment may include the debtor’s representations, the nature and use of the goods in the trading premises, available paperwork, and whether any credible ownership challenge is raised at the time.

The test is not perfection. It is whether the agent is reasonably entitled, on the facts available at the time, to treat the items as goods of the debtor.

What happens if third-party ownership is alleged?

Issues such as retention of title, consignments, or sale-or-return arrangements are not decided informally on site. Where a genuine claim is raised and supported, the relevant goods can be identified and the matter dealt with through the proper statutory process.

  • Credible claims should be raised in writing and supported by evidence such as invoices, delivery records or contractual terms.
  • Where a claim is genuinely disputed, the route is through Schedule 12 and CPR Part 85.
  • The statutory scheme provides a structured court-based process for resolving disputed ownership where necessary.

In practical terms, this means the landlord is not expected to resolve ownership disputes personally on site. Enforcement decisions are taken by the certificated enforcement agent, with inventories, notes and supporting records forming part of a defensible process.

Key safeguards

  • CRAR applies only to goods of the debtor.
  • Enforcement decisions are taken by the certificated enforcement agent.
  • Inventories, notices and site notes support a defensible audit trail.
  • Genuine ownership disputes can be dealt with through the statutory claim process.

Key references

Schedule 12, paragraph 10 – goods of the debtor
View on legislation.gov.uk

Schedule 12, paragraph 60 – third-party claims
View on legislation.gov.uk

CPR Part 85 – claims to controlled goods
View CPR Part 85

CRAR vs Lease Forfeiture: Comparison for Commercial Landlords

This comparison sets out two commonly used remedies where commercial rent arrears arise: Commercial Rent Arrears Recovery (CRAR) and Lease Forfeiture. The right option depends on whether the landlord’s priority is recovering arrears, regaining possession, or managing wider risk.

Debt recovery vs possession Regulated process vs higher judgment risk Staged options available
Feature CRAR Lease Forfeiture
What is it? A statutory procedure allowing enforcement agents to take control of a tenant’s goods to recover rent arrears, without issuing a court claim to start enforcement. The landlord terminates the lease and regains possession (commonly by peaceable re-entry or court proceedings), usually due to non-payment of rent or another breach.
Legal basis Statutory remedy under the Tribunals, Courts and Enforcement Act 2007(CRAR regime). Common law and the forfeiture clause in the lease, plus statutory constraints (e.g. Section 146 in non-rent cases).
When can it be used? Generally for purely commercial premises under a written lease, where qualifying rent is overdue and statutory notices can be served. For breach of lease (commonly non-payment of rent). Peaceable re-entry must be lawful and carefully controlled, or forfeiture can be challenged.
What can be recovered? Rent arrears(and associated sums permitted under the regime) — typically not service charges or insurance rent. Forfeiture ends the lease and restores possession. Arrears are usually pursued separately (e.g. as a debt claim).
Speed Notice-driven: a Notice of Enforcement is required before attendance (including “7 clear days” in most cases). Can be rapid if lawful peaceable re-entry is available and the landlord is ready to take back possession immediately.
Outcome Tenant remains in occupation. Goods may be controlled / secured / removed for sale to discharge the rent arrears. Tenant loses possession. The landlord regains the premises and can re-let (subject to legal and practical constraints).
Risk level (typical) Generally lower where statutory steps are followed and ownership issues are managed through the Part 85 / Schedule 12 process. Often higher if peaceable re-entry is mishandled (risk of unlawful exclusion / relief from forfeiture applications).
Ideal use case Landlord wants to recover arrears while keeping the tenant trading (or at least keeping possession stable). Landlord wants the premises back quickly, to re-let, redevelop, or prevent further losses.
Get Started

Instruction Form

Completing this form allows us to review your instruction and advise on next steps. No action is taken, and no obligation is created, until everything has been confirmed with you.

Where instructions relate to Commercial Rent Arrears Recovery (CRAR), all matters are handled in accordance with our CRAR Terms and Conditions of Instruction.

After submission, we will provide a draft warrant for your review and confirmation. Once approved, our team will proceed and keep you informed at each stage.

As part of our standard compliance checks, we may request further information where required to ensure the instruction can proceed smoothly and lawfully.

If you would prefer to discuss your situation before proceeding, you are welcome to contact our team at help@ukbailiffs.org.

If you are unsure whether CRAR is the appropriate route, you may wish to use our free Interactive CRAR Determination Tool before submitting your instruction.

Use Determination Tool Contact Our Team

FAQ

CRAR — Frequently Asked Questions

These FAQs explain CRAR at a general level and are intended to help landlords understand how the process broadly operates in practice. They are not legal advice, and individual cases may turn on the wording of the lease, the nature of the premises, the arrears position and any insolvency or dispute issues.

These FAQs are intended as general guidance on CRAR. Individual cases may differ depending on the lease, arrears position and any wider legal or operational factors.

What is CRAR?

Commercial Rent Arrears Recovery (CRAR) is a statutory procedure introduced in April 2014 which replaced the former common law remedy known as distress for rent.

In broad terms, it allows qualifying commercial rent arrears to be recovered by taking control of goods, without first applying to the court for permission.

CRAR is subject to specific qualifying conditions, procedural requirements and notice rules.

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

In general, CRAR does not require a court order to be obtained first. However, it can only be used where the statutory conditions are met and the instruction appears suitable on review.

Under what circumstances can CRAR be used?

CRAR is intended for purely commercial premises and will usually require a written lease. If the premises are residential or mixed-use, CRAR may not be available and another recovery route may need to be considered.

It generally applies to principal rent, together with VAT and interest where recoverable within the statutory framework. Other sums such as service charge or insurance rent are usually treated separately.

There are also threshold and timing requirements. We review the instruction information and supporting documents to confirm whether CRAR appears available before progressing matters.

What does “taking control of goods” mean?

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

Where payment is not received and the matter remains unresolved, controlled goods may be removed and sold in accordance with the applicable regulations, with proceeds applied toward the arrears and statutory fees.

Are you required to give the tenant notice?

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, at least 7 clear days’ written notice is required before enforcement under CRAR can proceed.

Where instructed and the documents appear 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?

No. Where certification is required, taking control of goods must be carried out by a certificated enforcement agent in accordance with the regulations.

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

Can I forfeit the lease if CRAR is unsuccessful?

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

If forfeiture is being considered, it is sensible to obtain advice from your solicitor before taking action which might be treated as waiving forfeiture for that period.

When will I receive funds?

Where payment is recovered and cleared, client remittances are normally made to the nominated bank account promptly.

As a general guide, remittance is typically made within 2 working days of cleared funds being received, subject to reconciliation and compliance checks.

Do you set your own fees?

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

What happens if I want to cancel the instruction?

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 agreed terms of instruction.

If you are considering cancellation, please contact us as early as possible so the position can be confirmed based on the stage reached.