Who can use Commercial Rent Arrears Recovery and what are the requirements?
As a general rule, only landlords of commercial premises, where the tenant remains in occupation of those premises, can use CRAR. There must also be a lease in writing. A contractual licence to occupy will not suffice.
A minimum sum equivalent to 7 days' rent needs to be outstanding before any action can be taken (however during COVID this may vary), and notice of enforcement containing prescribed information must be given to the tenant at least 7 clear days before any goods are taken. It is possible to ask the court to reduce the notice period if there is a risk of tenants removing goods from premises (eg during an insolvency).
Other requirements of CRAR include:
- details must be included in notice served on the tenant
- notice must be served in a specific way
- time limit for seizing goods from the notice being served (12 months)
- goods can only be seized at certain times
- only certain types of goods can be seized (and an inventory must be made)
- goods seized must be valued and not be sold for at least 7 days
Commercial landlords who want to recover rent arrears can use a procedure called Commercial Rent Arrears Recovery (CRAR). Read this guide for further information.