The goods problem
A landlord or enforcement agent cannot simply seize the subtenant’s goods because the immediate tenant owes rent. CRAR is directed at goods belonging to the debtor.
Commercial rent recovery · England and Wales
Recovering rent from subtenants when the main tenant stops paying
Where a commercial tenant has sublet premises and fallen into qualifying rent arrears, sections 81 and 84 of the Tribunals, Courts and Enforcement Act 2007 provide a statutory route that can redirect the subtenant’s rent to the superior landlord and, if payment is not made after the notice takes effect, may allow CRAR against the subtenant’s goods.
Rent flow, not third-party goods
The route addresses the subtenant’s rent rather than treating its goods as belonging to the head tenant.
14 clear days
The statutory notice period must be calculated correctly before redirected payment becomes due.
CRAR eligibility still matters
The superior landlord’s underlying CRAR entitlement must exist before the subtenant route is used.
Direct answer
What is the Section 81 rent-redirection route?
Where the superior landlord is entitled to exercise CRAR against the immediate tenant, section 81 allows written notice to be served on a subtenant requiring rent that would otherwise be paid to the immediate tenant to be paid directly to the superior landlord instead. The notice does not end the subtenancy or change the subtenant’s right to occupy; it redirects the rent stream after the statutory period expires.
The common scenario
Why ordinary CRAR against the main tenant may not solve the problem
A commercial tenant on the lease may have sublet the premises to another business which is in occupation and trading. If the immediate tenant then stops paying rent, there may be few or no goods belonging to that tenant at the property.
The rent-flow solution
Where the statutory conditions are met, the superior landlord can instead use the Section 81 mechanism to redirect rent payable by the subtenant.
Statutory route
How Section 81 works
The starting point is the superior landlord’s entitlement to CRAR against the immediate tenant. The subtenant notice is not a standalone debt-recovery shortcut and should not be used where the underlying CRAR conditions are not satisfied.
1. Check CRAR entitlement
The immediate tenant must owe qualifying commercial rent and the ordinary CRAR conditions must be satisfied.
2. Identify the subtenancy
Confirm the subtenant, the rent payable by it, the payment dates and the relevant occupation arrangement.
3. Serve the notice correctly
The notice must contain the required statutory information and the effective date must reflect the clear-day rules.
Important:
the route redirects rent. It does not itself terminate the subtenancy, grant possession or convert the subtenant into the original debtor before the statutory conditions for escalation are met.
From notice to redirected rent
Section 81 timeline in practice
The dates matter. A notice served, a notice becoming effective and later Section 84 enforcement are separate stages.
01
Confirm the head-lease CRAR position
Establish the immediate tenant’s qualifying rent arrears, occupation and the superior landlord’s entitlement to use CRAR.
02
Serve the Section 81 notice on the subtenant
The written notice directs the subtenant to pay rent to the superior landlord once the statutory period has expired.
03
Allow 14 clear days
Regulation 53(1) provides that the notice takes effect after 14 clear days from service. During that period the subtenant may continue paying the immediate tenant without double liability.
04
Redirect rent to the superior landlord
After the notice takes effect, rent due or becoming due under the subtenancy is paid directly to the superior landlord up to the amount specified by the statutory route.
05
If the subtenant does not pay: Section 84
If the subtenant fails to comply after the notice has taken effect, section 84 can treat the subtenant as the immediate tenant for the relevant recovery purpose and allow CRAR against its goods for the unpaid amount arising under the notice.
- The escalation is limited by the statutory scheme.
- The subtenant’s goods are not available before the conditions for Section 84 are met.
- Eligibility, service, timing and the amount claimed should be checked before enforcement.
Plain-English illustration
What the notice is trying to communicate
The statutory notice must satisfy the legal requirements. The example below shows the plain-English message the subtenant needs to understand; it is not a substitute for the prescribed statutory content.
Notice to subtenant – rent payment direction
We act on behalf of the superior landlord of the property you occupy.
Your landlord, the immediate tenant, is in rent arrears to the superior landlord.
The statutory CRAR provisions permit the superior landlord, in qualifying circumstances, to require rent payable by you to be paid directly to the superior landlord instead.
Once the notice becomes effective after the required clear-day period, rent covered by the notice must be paid to the superior landlord in accordance with the notice.
Payment made in accordance with the statutory notice is treated as payment of the rent that would otherwise have been payable to your landlord.
The notice does not itself end your right to occupy the premises.
Your landlord, the immediate tenant, is in rent arrears to the superior landlord.
The statutory CRAR provisions permit the superior landlord, in qualifying circumstances, to require rent payable by you to be paid directly to the superior landlord instead.
Once the notice becomes effective after the required clear-day period, rent covered by the notice must be paid to the superior landlord in accordance with the notice.
Payment made in accordance with the statutory notice is treated as payment of the rent that would otherwise have been payable to your landlord.
The notice does not itself end your right to occupy the premises.
Keep the communication factual. The effective date, amount, payee details and statutory basis should be clear and consistent with the formal notice served.
Instruction checklist
What we need before a Section 81 instruction proceeds
A complete file helps prevent the wrong rent, wrong tenant or wrong effective date being used.
Head lease and arrears
- Signed head lease and relevant variations.
- Current rent ledger with qualifying rent separated from service charge and other sums.
- Confirmation the immediate tenant remains within the CRAR framework.
- Any existing Notice of Enforcement and relevant dates.
Subtenant and risk information
- Subtenant name and occupation details.
- Sublease or evidence of the subtenancy.
- Rent amount, due dates and payment cycle.
- Known insolvency, dispute or ownership issues.
- Superior landlord payment and remittance details.
UK Bailiffs service
What UK Bailiffs can do
We can manage the operational sequence where the documents support the statutory route and identify when legal or insolvency advice is required before action continues.
Eligibility review
Check the lease, rent statement, CRAR conditions, subtenancy and known restrictions before acceptance.
Notice preparation and service
Prepare and serve the required documents from the approved information and preserve evidence of service.
Follow-up and escalation
Track the clear-day period, record responses and assess whether any later Section 84 enforcement stage is available.
Primary legal sources
Legislation governing the route
This page is general operational guidance. The statutory provisions and regulations should be checked against the facts of each instruction.
Tribunals, Courts and Enforcement Act 2007 — section 81
Notice to subtenant: payment of rent to superior landlord
Tribunals, Courts and Enforcement Act 2007 — section 84
Consequences where the subtenant does not comply
Taking Control of Goods Regulations 2013
Regulation 53 and the notice effective period
UK Bailiffs CRAR service
Commercial Rent Arrears Recovery
CW
Operational review
Reviewed by Craig Whinray
Craig Whinray is Director of UK Bailiff Services Ltd and a Certificated Enforcement Agent with more than 20 years' frontline enforcement experience.
This guide is informed by the CRAR statutory framework and UK Bailiffs' operational experience of commercial rent enforcement. It does not replace legal advice where the lease, subtenancy, insolvency position or entitlement to use CRAR is disputed or uncertain.
Editorial owner: UK Bailiff Services Ltd · Last reviewed 3 October 2026 · Review following material legal or operational change and at least annually.Need to redirect rent from a commercial subtenant?
Send us the head lease, rent ledger, subtenant details and any known insolvency information. We can assess whether the Section 81 route is available and identify the documents needed before service.
