Many landlords are failing to utilise Commercial Rent Arrears Recovery (CRAR), an effective way of recovering unpaid rent.
With traditional litigation proving expensive and time-consuming, and lease forfeiture carrying significant risks, CRAR offers a direct, regulated path to recovering unpaid rent.
Remit Consulting said rent collection rates are below 70% in the retail, leisure, and hospitality sectors, threatening landlord solvency and disrupting asset management strategies.
Uba Ngenegbo, associate solicitor at RG Law, said: “The CRAR process gives commercial landlords the legal authority to recover pure rent arrears without needing to go through the courts. By instructing a certified enforcement agent, landlords can seize and sell a tenant’s goods to recoup what’s owed.
“It’s a structured, lawful procedure introduced by the Tribunals, Courts and Enforcement Act 2007, and it replaced the old common-law right of distress with a system that aligns with modern enforcement standards and human rights legislation.
“At RG Law, we find that many landlords are either unaware of CRAR or wrongly believe it’s a hostile tactic. In reality, it can be part of a professional, transparent rent recovery strategy. It encourages settlement, protects landlord cash flow, and avoids the escalating costs of litigation. Used correctly, it doesn’t have to damage landlord-tenant relationships—it can help save them.”
CRAR applies under strict conditions:
- It only recovers pure rent (not service charges or insurance).
- The lease must be written and cover wholly commercial premises.
- The right to forfeit is waived if CRAR is used.
- Enforcement agents must be certified and follow a structured process, including a 7-day notice period before goods can be seized.
Goods essential to the tenant’s trade (up to a specified value) cannot be seized, and a separate notice must be served before any sale.
Landlords are failing to use CRAR owing to a lack of awareness, fear of confrontation, and misconceptions about the law, according to Remit Consulting.
Ngenegbo added: “Commercial landlords are businesses too.
“Cash flow is vital – especially when lenders are involved. CRAR gives landlords a route to recover what they’re owed without immediately resorting to litigation or eviction.
“With expert guidance, it’s possible to strike the right balance between protecting your income and preserving professional relationships.”