CRAR and Quarter Days
The Quarter Days, typically when commercial landlords expect payment of rent quarterly in advance are on or around the following dates:
• 25th March
• 24th June
• 29th September
• 25th December
If payment of rent isn’t made when it is due, then a commercial landlord must wait seven clear days before they can undertake the process of CRAR.
CRAR stands for commercial rent arrears recovery and it is the process whereby items can be removed from commercial property to be sold at auction to cover the total amount of rent due.
For CRAR to take place there must be a written lease in place and only rent can be recovered, it cannot be used for additional fees and charges such as service charges or any other additional fees or costs.
It is a process that can only be used for commercial premises. The Enforcement Agent must give the tenant 7 clear days’ notice of enforcement after the rent has become overdue. The rent must remain unpaid at the time the notice is served to the tenant.
The notice can be served in several ways including, by post, hand, fax or email.
After the notice has been served and the overdue rent has still not been received by the landlord Certificated Enforcement Agents can enter the premises via an open or unlocked door or any other usual entry point between the hours of 6am and 9pm or normal business operating hours if these are different. The Enforcement Agent can seize goods to cover the total owed, however, there are some exemptions including tools of the trade up to the value of £1,350. The enforcement agent cannot remove goods that are of greater value than the total amount of debt owed and must give the tenant a valuation of the items owed.
To find out more about the process of CRAR please do get in touch.Back