Commercial Rent Arrears Recovery (CRAR)
The new Act, although dated 2007, didn't come into play until 2014 which was when the new regulations were implemented across the enforcement industry. On the 6th April 2014, the Common Law remedy or distraint or distress for rent was abolished. It was replaced by Commercial Rent Arrears Recovery (CRAR). At Executive Recoveries and Enforcement (ERE), our Enforcement Support along with our Enforcement Agents have the knowledge and expertise of this regime. Under section 72 schedule 12 (taking control of goods) a landlord of a commercial property can recover rent payable under the tenant's lease without the need to go to court.
All Enforcement Agents at ERE are fully insured, certificated and have completed a course to develop a thorough understanding of the Taking Control of Goods Regulations 2013 for Rent. Their discreet and professional approach to each case is of great importance to allow a relationship between the tenant and the landlord to continue after instruction.
As soon as your tenant is in arrears, whether or not you think they will pay after a few days, contact ERE immediately. We will send a 7 day Notice of Enforcement to the tenant giving them 7 clear days to pay. This is known as the Compliance Stage. The cost set out by CRAR for this first stage of enforcement is £75 plus VAT (£90.00), payable by the tenant. ERE do not charge landlords or managing agents. If the tenant pays in full or arranges a payment plan within the 7 day period, there will be no further charges made. If the tenant fails to pay within the 7 days, we then move on to Second Stage of Enforcement, this is achieved by sending one of our Enforcement Agents directly to the tenant’s premises to “Take Control of the Goods” and arrange payment. This is known as the Enforcement Stage.
For further details, contact Enforcement Support on 0345 207 2690.