The Shadow of CRAR (Commercial Rent Arrears)

Updated: Feb 25

As we all know we live in an ever-changing world. The impact of globalization means we can buy more and more from suppliers and retailers across the world. And closer to home, the need to go shopping or to source a local supplier is changing. We can buy local or further afield and we don’t even have to leave our home or workplace.

But as we can see, the way we purchase goods and services is having an impact on our high streets and in other types of commercial properties such as offices, warehouses and pubs.

Rents and business rates can take out a large chunk of the cash flow of a business before the salaries and other overheads have been paid.

As an enforcement consultancy, we see both sides. We see landlords needing to collect commercial rent. And as High Court Enforcement Officers we see businesses struggling to keep up their monthly or quarterly rental obligations.

And the spectre of recovery of commercial rent arrears through enforcement action is increasing as these changing habits of commerce become business norms.

What is Commercial Rent Arrears Recovery (CRAR)?

CRAR - Commercial Rent Arrears Recovery - replaces the old Common Law remedy of distress for rent.

What does this mean for your business? As a landlord, you may see tenants falling into arrears. You may not appreciate there is a fast track system for the collection of this commercial rent through the Commercial Rent Arrears Recovery, commercial rent arrears recovery act or crar procedure, CRAR process which is a statutory procedure. It allows commercial rent to be collected by the serving of a simple enforcement notice, followed up by enforcement action using certificated enforcement agents.

Additional items such as service charges and insurance can be recovered using a standard county court claim.

Shergroup is a rent recovery collection agency that offers rent recovery service and rent arrears help to recovers unpaid rent recovery, commercial rent, and incidental charges which are due under a commercial lease.

How does CRAR apply?