Recovery of Arrears

When it comes to commercial property, the relationship between landlord and tenant should be an easy one. After all, both parties provide a necessary component in the others business: for the landlord, it’s a source of income,  for the tenant, it’s premises to operate from. When a tenant signs a commercial lease, they agree to pay a certain amount of rent on an agreed date throughout the lease.

However, if circumstances change for the business or the tenant simply refuses to pay, the landlord no longer receives any return on their investment. At JCP Solicitors, we act for landlords in recovering arrears that are properly due under the terms of the lease and act for tenants who may dispute those sums claimed.

The starting point is to ensure that the sums the landlord claims are due are actually recoverable in accordance with the terms of the lease.

How can JCP Solicitors help with the recovery of arrears?

As a landlord, you have the right to receive rent on time as per the terms in the commercial lease. If for any reason your tenant fails to pay, specialist legal advice will be beneficial in understanding what options you have in proceeding. When you instruct one of our expert commercial litigation solicitors, we will determine the most efficient and cost effective approach for recovering arrears from your tenant and take the necessary action in securing the rental payments along with any damages. With vast experience helping commercial landlords throughout South Wales and beyond, you can trust our team to work with determination to resolve matters as quickly as possible.

Landlords have a number of recovery options and the following will be considered:

  • Forfeiture of the lease and recovery of possession
  • Use of any rent deposit
  • Pursuing undertenants
  • Pursuing former tenants and guarantors
  • Issuing Court proceedings for a money claim
  • Initiating an insolvency process i.e. by serving a statutory demand
  • Commercial rent arrears recovery (CRAR)

While we will always aim to preserve the landlord-tenant relationship, we know that in many cases, this is not possible. Should your tenant challenge a commercial property rent arrears, rest assured that our solicitors will explore every possible option available to recover the arrears you are due.

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What is Commercial Rent Arrears Recovery (CRAR)?

Commercial Rent Arrears Recovery (CRAR) is a method of enforcement to recover outstanding rental payments relating to commercial property. This is relatively new legislation which came into force on 6 April 2014 and is governed by the Tribunals Courts and Enforcement Act 2007 and the Taking Control of Goods Regulations 2013.

The legislation sets out strict rules as to what can properly be regarded as ‘commercial premises’ and ‘rent’ for the purposes of the procedure. The legislation also sets out a number of conditions which must be satisfied before CRAR can be used and provides for a detailed procedure that must be followed should a landlord seek to exercise any right under the legislation.

CRAR can only be exercised on behalf of a landlord by an enforcement agent. The enforcement agent seeking to use the CRAR method to recover arrears on behalf of a landlord must give the tenant 7 clear days’ notice prior to exercising CRAR. The enforcement agent will then have 12 months from the date of the enforcement notice to either:-

  • Secure the tenant’s goods on the premises;
  • Remove the tenant’s goods from the premises and secure them elsewhere;
  • Enter into a controlled goods agreement with the tenant.

Unless the court orders otherwise, the goods secured by the enforcement agent will be sold at public auction. The proceeds of the sale will then be used to pay the auctioneers fees, the enforcement agent’s fees and the debt outstanding to the landlord.

If you are dealing with a commercial property dispute regarding the recovery of rental arrears, get in touch with the team at JCP Solicitors for practical advice and hands-on assistance in securing payment. 

Speak to our rent arrears solicitors in South Wales

To speak to our expert rent arrears solicitors in South Wales, please contact your local JCP Solicitors office:

To ask a quick question or arrange a call back, use our simple contact form to make an enquiry.