Bravo Investigations & Enforcement provides Commercial Rent Arrears Recovery (CRAR) nationwide
Bravo Investigations & Enforcement provides Commercial Rent Arrears Recovery (CRAR) for landlords without the need to go to court. We collect CRAR for commercial properties and this does not apply to residential or domestic rent. Commercial Rent Arrears Recovery (CRAR) is a legal procedure that allows landlords of commercial properties to recover unpaid rent by taking control of the tenant’s goods and selling them.
How does Commercial Rent Arrears Recovery (CRAR) work?
A minimum of 7 days’ rent needs to be outstanding before taking any action. The first step is to give a tenant a warning seven days before the enforcement agency will come and remove the goods. The warning must be given by the enforcement agent or its office. This seven days’ time period gives the tenant the opportunity to pay the arrears before the enforcement agent arrives. If the arrears are not paid in this time period, the Certified Enforcement Agents will attend the premises and seize the goods. The landlords must give a further seven days’ notice to the tenants before selling the goods.
Who can do Commercial Rent Arrears Recovery (CRAR)?
Only Certified Enforcement Agents following the statutory procedure can conduct a Commercial Rent Arrears Recovery (CRAR).
Does Commercial Rent Arrears Recovery (CRAR) apply to residential properties?
No, Commercial Rent Arrears Recovery does not apply to mixed use or residential properties.
What can be seized under Commercial Rent Arrears Recovery (CRAR)?
Only goods owned by a tenant can be seized under CRAR. Goods owned by a sub-tenant or other third party cannot be seized. The tools that the tenant uses for their business cannot be seized, unless the value exceeds £1,350 – beyond that, CRAR can apply to such tools.
What does “Taking control of goods” mean?
An Enforcement Agent under CRAR can take control of goods in three ways:
- The agent can secure the goods on the premises where they find them.
- The agent can remove the goods and secure them elsewhere.
- The agent can enter into a controlled goods agreement with the tenant.
A controlled goods agreement is an agreement in which the tenant is allowed to retain the custody of goods, but acknowledges that the Enforcement Agent has taken control of them and agrees not to remove or dispose of them until the debt is paid.