COMMERCIAL RENT ARREARS RECOVERY
CRAR (Commercial Rent Arrears Recovery) regulations came into force on the 6th April 2014, abolishing the former common law remedy of distraint for rent.
Section 72, schedule 12 (Taking Control of Goods) of the Tribunals, Courts and Enforcement Act 2007, allows a landlord of a commercial property to recover pure rent payable as per the terms of the lease from the tenant, without the requirement of court action. Our enforcement officers are knowledgeable and fully trained to be able to collect pure rent and undertake enforcement of the new rules and regulations of Commercial Rent Arrears Recovery.
Our enforcement agents are certificated and act professional at all times, while enforcing the Taking Control of Goods Regulations 2013 in an attempt to recover the outstanding commercial rent. We are able to act swiftly to ensure that the risk in recovering your outstanding rent is reduced and always act immediately on any instructions received. Our enforcement agents remain discreet and professional throughout the enforcement process to ensure that the relationship between the landlord and tenant can continue without any hostility in the future and ensure very little disruption to the tenant’s business.
Stages of Commercial Rent Arrears Recovery
On receiving your instructions we ensure that we act immediately to avoid any delay in the recovery of your outstanding commercial rent. As per the new regulations, we issue a compliance letter, as per the Compliance Stage of recovery, to your tenant advising them that they have 7 days to make payment of the full outstanding commercial rent along with the compliance fee in the sum of £75.00 plus VAT. Should the tenant respond to the compliance letter to make payment or enter into a repayment or settlement agreement, we are able to discuss this with you and arrange for payment of the same. No further enforcement fees will be payable by the tenant and added to the outstanding debt if full payment is made or a repayment agreement accepted by you is agreed within 7 days.
Should the tenant fail to respond to the compliance letter, the recovery process moves to the next stage of enforcement.
Following the Compliance stage, should the tenant fail to make payment of the full outstanding commercial rent and the compliance fee of £75.00 plus VAT, the matter will move to the Enforcement stage. The Enforcement stage permits one of our certified enforcement agents to attend on the commercial premises to recover the outstanding commercial rent and fees falling due as per the regulations.
On the enforcement agent attending on the premises, they will review the situation and attempt to recover the full outstanding rent from the tenant in a professional and discreet manner. Should the tenant be unable to make payment of the full outstanding rent they will attempt to enter into a repayment agreement with the tenant or Take Control of Goods as per regulations.
This final stage of the commercial rent collection process is that of the sale of the goods of the tenant held under the Controlled Goods Agreement taken by the enforcement agent at the Enforcement Stage. This stage is enforceable when the tenant fails to make repayment of the commercial rent and fees due or the tenant defaults on a repayment agreement entered into and the goods held on site are due to be of sufficient value to cover the rent and fees due.
The tenant is provided with a Notice of Intention to re-enter the premises. The tenant is allowed 48 hours to make payment of the outstanding rent and fees or at the Landlord’s instructions, the goods of the tenant are removed and sold at auction. The sale proceeds from the auction go towards payment of the auctioneer’s fees, removal fees, enforcement fees and the outstanding commercial rent due.
Call us now on 01227 750 966 to speak to one of our experienced members of staff to find out how 24 Hour Bailiffs Limited can help you. Alternatively, please feel free to complete our enquiry form and one of our dedicated enforcement agents will contact you to discuss your matter further.