Commercial Rent Arrears Recovery (CRAR)
Recover unpaid commercial rent while keeping the lease in place, without going to court.
Enforcement costs are normally recovered from the tenant.
Have a question before instructing? Call us on 0300 302 1010
What Is Commercial Rent Arrears Recovery?
Commercial Rent Arrears Recovery (CRAR) is a statutory process that allows a commercial landlord to recover unpaid rent directly, by instructing enforcement agents to visit the premises, take control of goods, and sell them to clear the debt if the tenant doesn’t pay.
Unlike forfeiture, CRAR does not end the tenancy, the lease remains in place throughout, and normal trading can continue once the arrears are settled.
If your priority is to end the lease and regain possession rather than recover the rent while the lease continues, Forfeiture of Lease may be the more appropriate route.
Is Your Case Eligible for CRAR?
CRAR is subject to strict statutory conditions. Before instructing us, check your case meets the following:
✓
The property is wholly commercial, with no residential element
✓
The net unpaid rent is at least the equivalent of 7 days’ rent
✓
There is a commercial lease in place and the CRAR statutory requirements are satisfied
✓
The tenant remains in occupation, or the circumstances otherwise allow CRAR to be used
Not sure if your case qualifies? Call 0300 302 1010 and our team will confirm before you instruct.
How CRAR Works
A simple 4 step process from instruction to collection, handled entirely by our team.
1
Instruct Us
Complete our instruction form with a copy of the lease and details of the rent arrears. Your completed instruction provides us with the authority to commence the CRAR process on your behalf.
2
We Review Your Case
Our team reviews the lease, rent arrears and information provided to check that the instruction meets the statutory requirements for CRAR before enforcement begins.
3
Notice of Enforcement Served
We serve the tenant with a Notice of Enforcement, giving the required notice period before an enforcement agent can attend to take control of goods if payment is not made.
4
Enforcement Agents Attend
If payment isn’t made, our Certificated Enforcement Agents attend the premises to seek payment or take control of qualifying goods. Where necessary, controlled goods may ultimately be removed and sold in accordance with the statutory enforcement process.
CRAR or Forfeiture? Choose the Right Remedy First
Using CRAR can affect a landlord’s existing right to forfeit the lease for the same rent arrears, so it is important to choose the appropriate remedy before enforcement begins. Once you instruct CRAR, including us issuing a Notice of Enforcement, you’re treated as having accepted the lease continues, and you lose the right to forfeit for that same arrears, even if CRAR doesn’t recover the full amount. This was confirmed by the Court of Appeal in Brar v Thirunavukkrasu [2019].
So the choice comes down to one question: what matters more, getting the money, or getting the property back?
- If your priority is recovering the rent you’re owed, and you’d rather the tenant stay and keep paying, CRAR may be the appropriate route. It also keeps the High Court Writ of Control open to you afterwards if CRAR doesn’t recover everything.
- If your priority is getting the tenant out, so you can re-let the property or use it yourself, forfeiture may be the appropriate route. This ends the tenancy but does not itself recover any money owed, you’d need to pursue that separately through a County Court Judgment and High Court Writ.
If a new rent period falls into arrears later and CRAR isn’t used for that period, forfeiture can still be considered for it, provided your lease allows it.
Learn more about Forfeiture of Lease →
Why Commercial Landlords Choose Absolute Enforcement
Absolute Enforcement provides Commercial Rent Arrears Recovery services to landlords across England and Wales, supported by experienced enforcement professionals and a nationwide network.
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Fast & Responsive We progress instructions promptly and, once the required Notice of Enforcement period has expired, arrange enforcement attendance without unnecessary delay. |
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Experienced Enforcement Professionals Our team handles commercial rent arrears cases ranging from straightforward recovery to more complex enforcement instructions. |
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Complete CRAR Service From serving the Notice of Enforcement to attendance, taking control of goods and recovery of the debt, we manage the CRAR process from instruction through to completion. |
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Clear Communication Our office team keeps you informed throughout the instruction, with reports and updates as enforcement progresses. |
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Nationwide Coverage We provide Commercial Rent Arrears Recovery across England and Wales through our experienced enforcement team and trusted professional network. |
Our goal is simple: to help commercial landlords recover unpaid rent as quickly and professionally as possible.
Who Can Use This Service
Commercial Landlords
If your tenant is behind on rent, CRAR lets you recover what’s owed without ending the lease or going to court.
Property Management Companies and Solicitors
Acting on behalf of landlords, we can handle the full CRAR process from Notice of Enforcement through to collection.
Pricing
CRAR Enforcement
Enforcement Costs Normally Recovered from Tenant
- ✓ £210 + VAT Enforcement Engagement Fee, paid upfront and normally recoverable from the tenant where permitted by the lease.
- ✓ Notice of Enforcement served to the tenant
- ✓ Enforcement agents attend to take control of goods if unpaid
- ✓ Statutory enforcement fees are normally recovered from the tenant alongside the unpaid rent
- ✓ Paid upfront and non-refundable if we’re stood down, or if enforcement isn’t possible once instructed
Fee transparency. Our £210 + VAT Enforcement Engagement Fee is paid upfront by the landlord and, in most cases, can be added to the amount sought from the tenant where the lease allows recovery of enforcement or administration costs. Statutory enforcement fees are charged separately to the tenant in accordance with the regulations. If enforcement cannot proceed to taking control of goods, a £75 + VAT abortive fee may apply.
What CRAR Can and Can’t Recover
CRAR can recover:
- ✓ Pure rent arrears
- ✓ Qualifying interest on the unpaid rent
- ✓ Applicable VAT on the rent
CRAR cannot recover:
- ✕ Insurance fees
- ✕ Service charges
- ✕ Business rates
We can advise on alternative routes to recover these separately.
Get Your Rent Recovered with CRAR
Delivered by Absolute Enforcement, a specialist High Court Enforcement Company.
Enforcement costs are normally recovered from the tenant.
Have a question before instructing? Call us on 0300 302 1010
✓ Fast, Professional and gets Results ✓ Full End-to-End Service ✓ National Coverage ✓ High Court Enforcement Company
When CRAR Is Not Enough: High Court Enforcement
CRAR is designed specifically for qualifying commercial rent arrears and is subject to statutory restrictions. If the tenant has left the premises, there are insufficient goods available, or the debt includes sums that cannot be recovered through CRAR, a County Court Judgment followed by High Court enforcement may provide an alternative route. Once an eligible judgment has been transferred to the High Court, our enforcement agents can pursue the debtor and take control of goods in accordance with the Writ.
Learn more about High Court Enforcement →
Commercial Rent Arrears Recovery Guides & Advice
Frequently Asked Questions
If the value of qualifying goods at the premises isn’t enough to clear the arrears, CRAR may only recover part of the debt. The remaining balance may then be pursued through a County Court Judgment and, where eligible, High Court enforcement.
CRAR can sometimes still be available after a tenant has left or a lease has ended, but only in certain circumstances. If your tenant has already vacated, contact our team before instructing and we can review whether CRAR remains available or whether court proceedings and High Court enforcement would be the more appropriate recovery route.
No, CRAR doesn’t require court proceedings or a solicitor to instruct. That said, we’d always recommend seeking legal advice if you’re unsure whether your case is eligible, or if you’re weighing CRAR against forfeiture.
A £210 + VAT Enforcement Engagement Fee is paid upfront by the landlord and, in most cases, can be recovered from the tenant where the lease allows recovery of enforcement or administration costs. Statutory CRAR enforcement fees are charged separately to the tenant in accordance with the regulations. If enforcement cannot proceed, a £75 + VAT abortive fee may apply.
Yes. Absolute Enforcement is a High Court Enforcement Company operating across the whole of England and Wales.
Only authorised enforcement agents may exercise CRAR. Once the required Notice of Enforcement period has expired, a Certificated Enforcement Agent may attend the commercial premises to seek payment or take control of qualifying goods belonging to the tenant. Entry, the goods that may be taken into control, any removal and subsequent sale are all governed by the statutory Taking Control of Goods procedure.
Serving a Notice of Enforcement gives the tenant the opportunity to pay before an enforcement visit takes place. If payment is not made, a Certificated Enforcement Agent may attend and take control of qualifying goods in accordance with the Taking Control of Goods Regulations. The tenant may also have rights to apply to the court in relation to the enforcement process.
CRAR generally applies only where the lease is of commercial premises and does not include residential occupation within the same demise. Where a property contains both commercial and residential accommodation, the lease structure and occupation arrangements need to be reviewed carefully before CRAR is used. If the commercial and residential parts are genuinely separate and held under separate agreements, CRAR may still be available in relation to the qualifying commercial tenancy. If your property is mixed-use, contact our team before instructing.
In certain circumstances, an application can be made to the court to reduce the minimum Notice of Enforcement period where there is a genuine risk that goods may be moved or disposed of before enforcement takes place. This will depend on the circumstances of the case.
CRAR is restricted to qualifying rent, together with certain interest and VAT where applicable. It cannot generally be used to recover sums such as service charges or insurance charges. Where a wider debt is owed, obtaining a County Court Judgment and subsequently transferring an eligible judgment to the High Court for enforcement may allow those sums to be pursued as part of the judgment debt.
CRAR was introduced in April 2014 under the Tribunals, Courts and Enforcement Act 2007, replacing the older common law remedy of “distress for rent.” It gives commercial landlords a direct statutory route to recover unpaid rent without needing to go through the courts.
