With Commercial Rental Arrears Recovery (CRAR), landlords of commercial properties are able to take action against rent arrears, enabling them to recover the funds lost from unpaid rent. CRAR works by allowing landlords to take control of a commercial tenant’s goods and sell them, with the profit being used to cover the lost rental income. In this blog, we have taken a look at how Commercial Rental Arrears Recovery works.
Understanding the Ins and Outs of Commercial Rental Arrears Recovery
CRAR came into effect in April 2014, and since then it has helped landlords of commercial properties to recover rent arrears. To make use of CRAR, you need to provide seven days’ notice of enforcement to the tenant in question. Once these seven days have passed, enforcement agents can enter the property – through an open or unlocked door, they cannot force their way in – and seize a whole host of goods, which you can then use to recover the funds owed. One of the good things about CRAR is that it applies regardless of whether this type of action is mentioned in the lease agreement.
There are some limitations to CRAR, as it can’t be used in all circumstances. For example, it’s only relevant if all of the premise is used commercially. Plus, CRAR can only be used to recover rent, and not service charges or any other costs related to the tenancy, such as insurance. You can only use CRAR if the tenant remains in occupation of your property and you must also have a lease in writing.
The Benefits of CRAR
There are a range of benefits of Commercial Rent Arrears Recovery, which is why it’s such a popular route for commercial landlords to take. Firstly, CRAR provides a legal and structured way of recovering overdue rent, which helps you to maintain a consistent stream of income. It’s also a lot more efficient, cost effective and straightforward than going to court, which can be a lengthy process, especially with the delays that courts are currently facing. CRAR can also help to maintain a good relationship between you and your tenants, as it offers a rent recovery approach that avoids a lot of confrontation and negativity.
Expert Commercial Rental Arrears Recovery Services
The CRAR process is clear and effective, but it’s always best to have a team of debt collection experts on side. This is where we come in. At Cobra Financial, we provide a professional and experienced commercial rent arrears recovery service, and we tailor our approach to you. We work tirelessly to help you to overcome commercial rent disputes and delays, whilst also ensuring that you receive the money that is rightfully yours as soon as possible. Get in touch to find out more.