Commercial Rent Arrears Recovery

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At Levi Solicitors, we regularly support landlords and tenants who are dealing with commercial rent arrears. We understand that these situations can be disruptive and our team of professional solicitors aim to resolve each case as quickly and efficiently as possible.

Whether you are a tenant navigating your legal obligations and facing recovery action, or a landlord seeking to recover unpaid rent, having an experienced solicitor by your side can make a huge difference to the outcome of your case.

We will get to know you and your business and advise you on your options for resolving your rent arrears dispute. Our solicitors will then act for you throughout the matter, including dealing with any court applications and hearings.

Through our years of experience handling standard and complex eviction for rent arrears and related matters, we have maintained a trustworthy reputation for our skills and dedication to client care.

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Contact our commercial rent arrears solicitors

We are proud to be transparent on fees and will give you clear costs advice from the outset.

If you would like a no obligation discussion to see how we can help you recover commercial rent arrears (or resolve a rent arrears dispute), call us on 0800 988 7756, or contact us by using the simple enquiry form on this page.

We have solicitors in Leeds, North Leeds and London who are ready to provide prompt, friendly advice.

Negotiation with tenants
Commercial rent arrears recovery (CRAR)
Forfeiture
Court proceedings
Enforcing of judgments
Dispute resolution

Our commercial rent arrears services

| Negotiation with tenants

Our expert solicitors can negotiate with tenants on your behalf. We have years of experience using alternative dispute resolution methods to find an out of court solution wherever we can, as this is typically less costly and time consuming.

We can liaise with your tenants and negotiate a resolution which keeps the final decision in the hands of the involved parties wherever possible.

Likewise, if you are a commercial tenant and you have accrued rent arrears, we can contact your landlord to attempt to settle the matter.

| Commercial Rent Arrears Recovery (CRAR)

Commercial Rent Arrears Recovery (CRAR) is an out-of-court method of recovering commercial rent arrears. Through CRAR, an enforcement agent can seize the tenant’s goods to recover the rent arrears.

To use CRAR as a landlord, you will need to give seven days’ notice of enforcement after the date that the rent has become overdue.

The requirements for the notice are strict. We can advise on this and ensure that the notice is drafted and served correctly.

We can then take you through the rest of the process, from instructing enforcement agents to advising on accepting payments from the tenant.

If you are a tenant who has been served with a notice of enforcement, our specialist team can help. Call us as soon as possible as there is a limited time within which you can respond.

| Forfeiture

If the rent arrears are substantial, a landlord may decide that their only option is to terminate the lease by forfeiture.

We can advise landlords on their options and guide them through all the stages, including peaceful re-entry and/or court proceedings.

Levi can also help tenants avoid this outcome through negotiation and advise on options to apply for relief from forfeiture.

| Court proceedings

Another option for recovering rent arrears is to issue a money claim at court. Our specialist solicitors can advise you on the best course of action and take you right through the court process to secure a judgment for the rent arrears.

Likewise, we can advise tenants on defending or making a counterclaim should your landlord issue proceedings against you.

Whilst securing orders from local courts may feel daunting, we have the expertise to build a strong case on your behalf and ensure a positive outcome.

| Enforcing of judgments

When necessary, we can assist landlords in enforcing the judgment. This can be a tricky process to start, and we have practical experience in effectively communicating with the involved parties.

If you are struggling to enforce a judgment, such as evicting a tenant for rent arrears or recovering commercial rent arrears, we recognise the frustration you may be feeling. Take care not to react out of emotion and instead speak to a legal professional who can advise you on your options.

| Dispute resolution

Our dispute resolution services are provided by a dedicated team with a proven record of success.

We handle each case with sensitivity and respect for your preferences, aiming to find a resolution regardless of the issues involved. Whenever possible, we aim to resolve matters as amicably as possible.

Key questions about commercial rent arrears

What is commercial rent arrears recovery?

Commercial Rent Arrears Recovery (CRAR) is a legal means by which a landlord can recover unpaid rent from their tenants without involving the court. The landlord of a commercial premises can take control of the tenant’s goods and sell them to recover the rent arrears.

It is a process governed by the Tribunals, Courts and Enforcement Act 2007, and it exclusively applies to commercial leases in writing and with agreed upon CRAR terms.

How can a landlord recover rent arrears?

The procedures for recovering commercial rent arrears are strict and must be followed accurately. Levi regularly assists with various commercial rent arrears recovery procedures, including:

Commercial rent arrears recovery (CRAR): CRAR allows commercial landlords to instruct enforcement agents to take control of goods belonging to their tenants in order to sell them to recover a value equivalent to the rent arrears.
Pursuing guarantors/original tenants: Many commercial tenants have a guarantor. Alternatively, if your tenant assigned the lease, there may be an Authorised Guarantee Agreement (AGA). This means that the original tenant acts as the assignee’s guarantor. We will advise you on whether you can pursue the guarantor or original tenant for the rent arrears.
Forfeiture: One of the most severe options open to a commercial landlord is to “re-enter” the property and change the locks, terminating the lease. This is known as forfeiture. Re-entry must be peaceful, and you are highly advised to seek a court order to make sure that the process is legally sound. Our commercial property disputes solicitors have a wealth of experience in forfeiture as a result of commercial rent arrears and will take you through the technicalities of this process.
Debt claim: In some cases, the best option for the landlord may be to issue proceedings in the county court for the rent arrears. You will need to issue a Letter Before Action and allow the tenant time to respond before taking steps to enforce the judgment.

How far back can rent arrears be claimed?

In England and Wales, a landlord can claim commercial property rent arrears of up to six years, no matter the procedure that is used.

The only exceptions are unusual circumstances, such as the tenant having committed fraud. Our specialist team will be able to help with rent arrears and advise on whether any of the exceptions apply to you.

What are the rules for Commercial Rent Arrears Recovery (CRAR)?

CRAR has unique rules governed by the Tribunals, Courts and Enforcement Act 2007 and the Taking Control of Goods Regulations 2013, following the Commercial Rent Arrears Recovery Act. Some of the key rules for the CRAR enforcement process are as follows:

CRAR can only apply to commercial properties where the premises are used exclusively for commercial purposes.
CRAR can only be used to recover commercial rent arrears.
CRAR must be carried out by a certified enforcement agent. A landlord cannot seize goods directly.
There must be at least seven days’ rent overdue before CRAR can be started.
Landlords must issue a Notice of Enforcement before any action is taken. It must include details of the debt and instructions for paying rent to avoid goods being seized to cover the rent arrears.
Certified enforcement agents must enter the premises peacefully and usually during business hours and can only seize certain goods.
The sale of seized goods can only be used to cover enforcement agent fees and rent arrears, and any remaining funds must be returned to the tenant.

It’s also important to note that CRAR cannot be used if the lease has been forfeited or terminated or if the tenant is in administration.

Contact our commercial property solicitors for rent arrears advice

If you would like help with commercial property rent arrears needs, call us on 0800 988 7756, or contact us by using the simple enquiry form on this page. We have solicitors in Leeds, North Leeds and London who are ready to provide prompt, friendly advice.