When was the commercial rent arrears Recovery Act introduced?

The previous regime of the common law remedy of distress for arrears of rent was replaced by the Commercial Rent Arrears Recovery (CRAR ) scheme on 6 April 2014. CRAR is a ‘self help’ remedy and does not need the court to be involved very much.

When to go to court for commercial tenant?

Forfeiture is however not without its risks. A commercial tenant can apply to the court for relief from forfeiture within six months of the day you terminate their lease. In such scenarios the court will base their decision on the settlement of rental arrears.

What to do if commercial tenant does not pay rent?

A commercial tenant can apply to the court for relief from forfeiture within six months of the day you terminate their lease. In such scenarios the court will base their decision on the settlement of rental arrears. If the tenant can settle their arrears the court may award them relief, meaning that they can retake the property.

Is there a process for recovery of rent arrears?

Process for recovery of commercial rent arrears Act promptly and take legal advice A notice of termination can only be served if rent is at least 10 working days overdue (see image above) and then the landlord has to wait a further 10 working days from service before it can terminate the lease.

Can a commercial tenant delay rent for three months?

The government has previously allowed commercial tenants to delay rental payments for three months without fear of eviction. The extended measures will prevent landlords from using commercial rent arrears recovery, or sending in bailiffs, unless they are owed 90 days of unpaid rent.

When to use commercial rent arrears recovery ( CRAR )?

Commercial Rent Arrears Recovery (CRAR) – The Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020 prevented landlords from using CRAR unless an amount of at least 90 days’ rent was due (it had previously been seven days or more).

What are the legal obligations of a tenant in a commercial lease?

A lease often requires the tenant to take out and maintain insurance in relation to the building and its contents, together with public liability. A tenant may also need to obtain other types of insurance depending on their business (e.g. motor vehicle insurance). These insurances are generally available in business pack insurance.

When to break a lease on a commercial property?

A commercial property lease usually continues until its end date unless you include a clause to end it earlier. This is an official date in the lease, agreed by the landlord and tenant, where the lease can be ‘broken’ without anyone facing a penalty. As a tenant, you need to give your landlord 2 months notice that you are using the break clause.