Please don’t be distressed!

Find out how methods of recovering rent arrears will be changing from 6 April 2014

On 6 April 2014 the Commercial Rent Arrears Recovery (“CRAR”) method of enforcement to recover rent arrears in respect of commercial property comes into effect. From this date CRAR must be used for commercial property and the common law right of “distress” is abolished. CRAR still allows landlords to take control of tenants’ goods to sell them for the purposes of recovering the equivalent value of the rent arrears but under the new regime various notices will need to have been served on the tenant at various points during the process. CRAR applies to all tenancies of commercial premises provided the tenancy itself is in writing. The use of CRAR has the effect of waiving any right to forfeit that may have arisen. CRAR will change the strategies that landlords adopt to recover arrears and both landlords and tenants need to be aware of the detail to ensure the rules are being followed.

For detailed guidance please speak to Kate Andrews in our real estate litigation team.