CRAR is short for Commercial Rent Arrears Recovery which replaced the landlord’s common law right of distress against his tenant to recover arrears of rent for commercial premises using the services of a Certificated Bailiff. CRAR came into force on the 6th April 2014.
A court order is not required to exercise the right to use CRAR for commercial premises however we will need to be in possession of a signed warrant of control for us to proceed.
Unfortunately, the CRAR process cannot be used s for residential properties.
Only goods belonging to the tenant on the demised premises, i.e. the property covered by the lease, may be taken into control. There is detailed guidance on goods belonging to a tenant that cannot be seized. These include items of equipment necessary for the tenant’s personal use in its employment, business, trade, profession, study or education such as computer equipment and vehicles. However, the exemption applies only where the aggregate value of the items is up to £1,350. Items valued over this threshold can be seized.
Yes. To start the process, the enforcement agent is required by law to give seven days clear notice of the intention to exercise CRAR. This notice is called a “Notice of Enforcement” The notice can be served either by post, hand, fax or email. The tenant must be in arrears of at least seven days’ rent before the notice can be served.
Our Commercial Rent Arrears Recovery service is free of charge to all clients, our fees are paid by the tenant in accordance with The Taking Control of Goods (Fees) Regulations 2014. To see a copy of the charges please click here.
Please feel free to contact us and we’ll be happy to answer any further questions you may have.