If it is for commercial rent alone then the landlord or their representative can instruct an Enforcement Agent to recover the rent, interest and VAT. Under the Commercial Rent Arrears Recovery (CRAR) regulations*, which came into force in 2014, empowers an Enforcement Agent to act on behalf of the landlord. The court enforcement company will provide the tenant 7 days’ notice of enforcement. This allows the commercial tenant one final opportunity to pay the arrears. Once this period has expired the Enforcement Agent will then visit the tenant with a warrant of control. The Enforcement Agent on their first visit intends to obtain full payment which includes rent, interest, VAT as well as their enforcement costs. Should further negotiation be required, the warrant authorises the Enforcement Agent to take control of goods on behalf of the court to the value of the debt.
The above process usually results in full payment by the tenant in the vast majority of commercial rent arrears cases. Should a satisfactory agreement not be achieved, then the goods listed on the warrant of control can be removed for sale at public auction.
Service Charge and Insurance Arrears – If the tenant also owes service charges and insurance, an alternative process is available to the landlord.
We offer a One Stop Solution for both Commercial Rent Arrears Recovery CRAR and Service and Insurance Arrears. See our Commercial Rent Arrears (CRAR) video.
* To exercise CRAR (Commercial Rent Arrears Recovery) pursuant to Section 73(8) of the Tribunals, Courts and Enforcement Act 2007 and the Taking Control of Goods Regulations 2013, for the recovery of the rent and enforcement costs as the Law directs.