Commercial Landlords

PUBLISHED 01.05.14
The age old remedy of Distraint for Rent (i.e. putting in Bailiffs without warning where there are rent arrears) has finally been consigned to history.

It was a useful remedy for commercial landlords, as it gave the tenant no warning or time to shift everything of value out to the lock-up garage they keep just for such eventualities.

There is now a statutory regime called the Commercial Rent Arrears Recovery (and yes, of course there is an acronym ! – CRAR) which came into effect on 6th April 2014.

It limits what can be recovered – pure rent (i.e. not service charge etc reserved as rent) Vat and interest. The main change however is a notice period. 7 clear days notice has to be given to the tenant before the bailiff can go in and seize goods – and hey ho – the unit now seems to be empty!

There are other restrictions and limits. For more information and advice contact our litigation team.