Commercial Rent Arrears
Landlord, Help Yourself
Years ago I wrote on this subject “Landlord, Help Yourself”, because in those days, although few enough landlords knew it, they could help themselves. Landlords owed rent for commercial premises, provided there was no residential element in the demise, could just enter peacefully and seize the tenants goods and sell them.
All that was before the Tribunals Courts and Enforcement Act. In 2014 section 65 of that Act came into force and with one miserable section removed 700 years of history. No more pound breach, rescous or replevin. And to make things clear S 71 read: The common law right to distrain for arrears of rent is abolished.
The whole has been replaced by a scheme whereby only a bailiff, now termed “an enforcement agent” can act. He does that by taking control of goods.
S72 restores the much of the former position:
Commercial rent arrears recovery (CRAR)
(1) A landlord under a lease of commercial premises may use the procedure in Schedule 12 (taking control of goods) to recover from the tenant rent payable under the lease.
(2) A landlord's power under subsection (1) is referred to as CRAR (commercial rent arrears recovery).
Briefly, in a huge fudge, those drafting the new Act found that residential tenants had a raw deal and needed protecting. When it came to the commercial sector they thought that a) by and large the commercial sector regulated itself well enough and b) anyhow they were reluctant to take on the likely extra work. Accordingly the Act arranges that CRAR would safely leave the remedy with the landlord and his agents. Almost as before!
There it is. Rent arrears? If the tenant is in occupation and has goods worth seizing all commercial landlords need to do is locate and instruct a Certificated Bailiff (who you will remember is now called an enforcement officer). We can arrange all that. And if the tenant is no longer in occupation the creditor needs our services and perhaps those of our tracing agency.
L.M.Wise FCA
Barrister-at-Law
Leslie Wise has regularly written articles for the Solicitors' Journal, Solicitors' Gazette and Accountancy. His wide practical experience informs Debt Collecting London’s total approach to your debts and helps ensure a quick result.