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Having commercial tenants who do not pay their rent quickly turns from a source of irritation to a problem that can be very costly for a landlord.
London Bailiff Services has a team of Certificated Enforcement Agents that will collect your rent, interest, and VAT payments under a commercial lease throughout the capital.
There is no requirement for a court order because our agents are authorised to act in accordance with the Tribunals Court and Enforcement Act 2007’s regulations.
In order to use CRAR, the regulations require a Notice giving 7 clear days to pay the outstanding rent together with our statutory charges must be sent to the tenant.
Once this period has expired, Certificated Enforcement Agents may enter the property through usual entry points ( they must be open) in order to seize goods. CRAR applies whether or not reference is made to it in the lease. Once served the a notice of enforcement binds the tenants goods into the possession of the enforcement agent, meaning they cannot sell or otherwise dispose them.
If the tenant does not pay after this notice London Bailiff Services Enforcement Agents will visit the tenant with the aim to take payment in full. All of our agents are aware that each case is unique and are always sensitive to each client’s specific requests, and recognize that ultimately the goal is to recover what is owed, quickly, but with the least fuss as possible. If instructed by the landlord to do so the agents will Take Control of the tenant’s goods under a Controlled Goods agreement allowing a short term arrangement to pay.
Where the tenant does not maintain payment under controlled good agreement, with the landlord’s approval, London Bailiff services will remove or secure the goods for sale.
The CRAR rules do not apply to the collection of service charges, insurance, deposits, or utility arrears. London Bailiff Services will strive to collect these arrears in full along with the outstanding rent, although they are outside of the CRAR regulations. There is NO COST to the landlord for the recovery of any Service Charge, Insurance, Deposits, or utility arrears if we are instructed to collect rent due under CRAR at the same time.
As a general rule, only landlords of commercial premises, where the tenant is still in occupation of the premises, can use CRAR. There must also be a written lease in writing, a licence to occupy will not be sufficient. However, if the lease has expired, landlord can use the CRAR process if:
The lease ended within the last six months;
The lease did not end by forfeiture;
The rent was in arrears at the time the lease ended;
Specific details must be included in the notice served on the tenant and the notice must be served in a specific way. Failure to do so will invalidate it.
The time limit for agents to enforce by seizing goods is 12 months from the notice being served.
Goods can usually only be seized between 6am and 9pm
Only certain types of goods can be seized (and an inventory must be made)
Any goods seized must be valued and must be held at leas 7 days before sale.
Tenants can delay enforcement by applying to court for a delay of execution or a set aside the instruction. It is possible to enter a controlled goods agreement in order to repay what is owed over a short period of time. This agreement allows goods to remain on the premises, but the enforcement agent will be able to remove them if there is a default on the agreed repayments. If goods are removed for sale, the enforcement agent must provide an inventory of all items seized.
Tenants should remember that if they are unable to pay commercial rent as it falls due it could be regarded as sign of insolvency and landlords may take steps to wind a company up.
If you are a landlord and you’d like to learn more about Commercial Rent Arrears Recovery and how London Bailiff Services can help, or if you need to recover rent arrears and service charges fees, get in touch with our team today.
