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Commercial Rent Arrears Recovery (CRAR)

If you’re a commercial property owner, you can recover your rent arrears without needing a court order by using Commercial Rent Arrears Recovery (CRAR). It is a statutory procedure that allows you to recover rent arrears by taking control of the tenant’s goods and selling them. However, this only applies to commercial tenancies subject to a written lease. The rent arrears must be at least 7 days’ worth or more at the time that the Notice is served and at the time of enforcement, and landlords do not have the right to seize goods – this can only be actioned by certified enforcement agents, such as Shergroup.

Use our FREE review service to work out your best enforcement option. Just complete our simple form and upload a copy of your outstanding rent invoices along with a copy of the Notice of Enforcement that you have sent to your commercial tenant and one of our trained Business Solutions Advisors will help you get back on track with your situation.


What can the Legal Expert do for you?

As a general rule, only landlords of commercial properties when the tenant is still using their property can use CRAR. A written lease is also required. A contractual right to occupy is insufficient.

Before any action can be taken, a minimum of 7 days’ rent must be owed, and a notice of enforcement containing prescribed information must be provided to the tenant at least 7 clear days before any goods are taken. If there is a risk of tenants removing things from the premises, you can ask the court to shorten the notice time (e.g., during insolvency).

Other requirements of CRAR include:

  • Details must be included in the notice served on the tenant
  • The notice must be served in a specific way
  • The time limit for seizing goods from the notice being served (is 12 months)
  • Goods can only be seized at certain times
  • Only certain types of goods can be seized (and an inventory must be made)
  • Goods seized must be valued and not be sold for at least 7 days

Before you exercise a CRAR, you need to make sure the following conditions are met |

  • the tenant must be in arrears before giving notice of enforcement
  • the amount of arrears claimed must be certain or capable of being calculated with certainty
  • amount of arrears claims meets the minimum amount set out in the legislation – this is currently stated to be seven days’ rent; and
  • arrears must still be unpaid at the point when the enforcement action takes effect (being the date the goods are taken).

By using Shergroup’s expert enforcement team you will get to work with the enforcement agents you can see on “Call the Bailiffs”. We use a combination of enforcement, legal and insolvency strategies to recover overdue invoices on a “no win, no-cost basis. We can help you with any paperwork by enlisting the help of one of our business solution advisors, who will be happy to talk to you about your situation. We can also provide invoice lending options for businesses that require additional capital fast. So, don’t lose hope, instruct us today and we’ll help you enforce the CRAR notice and recover your rent arrears.

Use our online channels to contact us about any query you have. We are here to help you get your situation resolved.

Phone | 020 3588 4240 | Email | [email protected]

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Last updated | 19 July 2023

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