CRAR (Commercial Rent Arrears Recovery) regulations came into force on the 6th April 2014
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 agents are fully certificated
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.
We deal with many types of debt including personal debts, commercial debts, outstanding residential rent and outstanding commercial rent. We deal with the entire debt recovery process in house from tracing to enforcement. As no work is outsourced, we can keep our costs low.
Our process is completely flexible so you, as the client, are able to choose how far you wish to progress with the recovery of your outstanding debt. Our dedicated staff members are on hand to offer advice and support on the most appropriate way to proceed forward with the recovery of your outstanding debt. On instructing us, we also ensure to keep you updated throughout the process
The 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