Commercial Rent Arrears Recovery

United Kingdom

This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.

Distress is an invaluable and frequently used remedy for the recovery of arrears. Its replacement by commercial rent arrears recovery ("CRAR") from 6 April 2014 causes a significant problem for landlords. The requirement with CRAR to serve prior notice gives tenants an opportunity to put goods out of landlords' reach and undermines the remedy. Whilst seeking to protect tenants' human rights and create a more level playing field between landlord and tenant, many landlords will perceive that CRAR has gone too far in helping tenants. The changes also weaken a superior landlord's right to recover rent from sub-tenants, if a tenant of the superior landlord is in arrears.

Please click here for a comparison table between CRAR and distress.