Commercial landlords: How to recover rent arrears
In these difficult times for commercial landlords, knowing what action you can take when a tenant stops paying you their rent has never been more important.
Moving quickly to minimise the damage is key and our Commercial Property Disputes Team here at Wards Solicitors, highly experienced in this area of the law, can talk you through exactly what you need to do.
Commercial landlords and unpaid rent
Our Commercial Property Disputes Team will work closely with you to evaluate whether you are in a position to forfeit the lease and whether doing so is in your best long-term interests.
Can I use commercial bailiffs?
The answer is yes, although an extension to Covid-19 regulations recently increased the number of days over which unpaid rent must be accrued before Commercial Rent Arrears Recovery, known as CRAR, can be instigated.
In short, CRAR is a statutory service to recover outstanding rent by taking control of a tenant’s goods and selling them.
New regulations came into force on 29 September 2020 restricting the use of CRAR and increasing the minimum amount of net unpaid rent that must be outstanding before CRAR may be instigated.
Between 29 September and 24 December 2020, the equivalent of 276 days’ rent must be owed. After 25 December 2020, the amount of rent arrears required will rise to 366 days.
- We can explain the key CRAR changes and relevant dates and how they might affect you. Please contact us to find out more details
We will work closely with certified commercial bailiffs on your behalf to peacefully re-enter the premises when the tenant is not on-site.
What can I do when my tenant has moved out but owes me rent?
We will make every effort to put you in the best position to recover the rent owed to you. We can implement a number of procedures depending on your circumstances including:
- County Court proceedings;
- The threat of winding up or bankrupty;
- Drawing on the Rent Deposit Deed or other security;
- Seeking recovery from guarantors.
We will always use the powers in the lease to optimise your chances of recovering legal costs and interest from the debtor.
Keeping you in the picture
Our Commercial Property Disputes lawyers will always make you aware of all the available options, the pros and cons of each as well as the likely costs.
We also focus on what you yourself can do to improve the situation with your tenants and find amicable solutions.