CRAR

A Complete Guide to Commercial Rent Arrears Recovery (CRAR) in the UK

In the world of commercial property rental, landlords often face challenges when tenants fail to pay their rent. Late or unpaid rent can significantly impact a landlord’s financial stability, making effective debt recovery solutions crucial. One of the most powerful legal tools available to commercial landlords in England and Wales is Commercial Rent Arrears Recovery (CRAR).

CRAR allows landlords to recover unpaid rent by taking legal control of a tenant’s goods without the need for court proceedings. This process is highly regulated under the Taking Control of Goods Regulations 2013, ensuring fairness and compliance. If you are a landlord dealing with unpaid rent, understanding how High Court Enforcement Officers (HCEOs) can help is essential.

In this guide, we will explore everything you need to know about CRAR enforcement, the legal process, and how a debt recovery agency like Shergroup can support landlords in reclaiming unpaid rent.

What Is Commercial Rent Arrears Recovery (CRAR)?

CRAR is a statutory process that allows commercial landlords to recover unpaid rent by seizing a tenant’s goods. Unlike residential evictions, CRAR applies only to commercial properties, and landlords must follow strict legal guidelines to enforce it.

Key Features of CRAR

Applies Only to Commercial Leases | CRAR cannot be used for mixed-use properties or residential tenancies.
No Court Action Needed | Landlords do not have to go to court to enforce CRAR. However, the correct legal process must be followed.
Only Rent Can Be Recovered | CRAR applies solely to unpaid rent, excluding service charges, insurance, or other lease-related debts.
Certified Enforcement Agents Must Be Used | Only authorised High Court Enforcement Officers (HCEOs) can execute CRAR.

How CRAR Works: Step-by-Step Process

Step 1 | Issuing the Notice of Enforcement

Before taking any action, landlords (or their appointed enforcement agents) must serve a Notice of Enforcement to the tenant.

This notice must give the tenant at least 7 clear days to pay the outstanding rent.
The notice must include details about the debt, the enforcement agent, and the deadline for payment.
If the tenant does not settle the debt within the given timeframe, enforcement action can proceed.

Step 2 | Taking Control of Goods

If the rent remains unpaid after the notice period, enforcement agents can enter the commercial premises to take control of goods.

Entry must be peaceful—enforcement agents cannot force entry unless they have previously gained access.
Goods are listed under a Controlled Goods Agreement (CGA), allowing tenants extra time to pay before removal.
If the tenant refuses to sign the CGA or does not comply, the goods may be seized for auction.

Step 3 | Selling Goods to Recover Debt

If the tenant still does not pay, enforcement agents have the authority to sell seized goods at a public auction.

Goods must be valued and sold following legal guidelines.
The proceeds go towards clearing the rent arrears, and any surplus is returned to the tenant.

This structured process ensures that both landlords and tenants are treated fairly under the law.

Why CRAR is an Effective Debt Recovery Solution for Landlords

CRAR provides landlords with a quick and effective means of recovering unpaid rent without lengthy legal battles.

Advantages of Using CRAR

No Court Proceedings Required – Landlords can enforce CRAR without filing a lawsuit.
Legally Compliant Process – The process follows the Taking Control of Goods Regulations 2013, ensuring fairness.
Faster Rent Recovery – Enforcement agents can act quickly, encouraging tenants to settle their debts.
Professional Enforcement – Only certified High Court Enforcement Officers (HCEOs) can conduct CRAR, ensuring compliance.

For landlords struggling with unpaid commercial rent, debt recovery agencies like Shergroup offer expert CRAR enforcement services across England and Wales.

Common Questions About CRAR

1. Can CRAR be used for residential tenants?

No, CRAR only applies to commercial properties under a lease agreement. It cannot be used for residential tenancies or mixed-use premises.

2. Can landlords force entry into a property?

No. Enforcement agents can only enter through unlocked doors during the first visit. If the tenant refuses access, further legal action may be required.

3. What types of goods can be seized?

Only business-related assets can be seized. Personal belongings or essential tools for work (e.g., a tradesperson’s tools) cannot be taken.

4. Can tenants stop CRAR once it has started?

Yes. If the tenant pays the outstanding rent or enters into a repayment plan through a Controlled Goods Agreement, enforcement action will stop.

Shergroup | Your Trusted Partner in High Court Enforcement

At Shergroup, we specialise in CRAR enforcement and debt recovery for landlords. Our team of High Court Enforcement Officers (HCEOs) ensures that unpaid rent is recovered quickly and legally.

As featured in popular TV shows like “Call the Bailiffs: Time to Pay Up” and “Can’t Pay? We’ll Take It Away,“ our enforcement experts handle rent arrears with professionalism and efficiency.

Why Choose Shergroup for CRAR?

Nationwide Coverage: We operate across all 105 postcodes in England and Wales.
Same-Day or Next-Day Service: Fast and effective enforcement action.
No Win, No Fee: Our services are FREE for landlords—tenants cover the costs when rent is recovered.
Complete Security Solutions: We provide additional security services, including risk assessments, locksmiths, and property protection.

With Shergroup, landlords can regain control over their properties and recover rent arrears without the stress of legal battles.

Conclusion: High Court Enforcement for Effective Debt Recovery

Recovering unpaid commercial rent doesn’t have to be a legal nightmare. Commercial Rent Arrears Recovery (CRAR) provides landlords with a powerful and legal solution to collect outstanding rent without going to court.

By working with a trusted debt recovery agency like Shergroup, landlords can enforce CRAR efficiently and legally, ensuring compliance with High Court Enforcement regulations.

If you are struggling with rent arrears, don’t wait—take action today!