A commercial lease is a legally binding agreement that allows a tenant sole occupancy of a commercial property. In return, they have to pay rent. When a landlord and tenant are part of a commercial lease, the tenant may experience financial difficulty and fall into rent arrears. When tenants fall into rent arrears, their landlord can use the commercial rent arrears recovery (CRAR) process. This article will explain the pros and cons of the CRAR process.<\/p>\n\n\n\n
The commercial rent arrears recovery process<\/a> (CRAR) is a legal method for landlords to recover rent arrears from their tenants. It replaced the previous legal method, which was to use distress law.<\/p>\n\n\n\n The CRAR process allows a landlord to recover rent arrears that are at least seven days late. The process will enable them to use an enforcement agent to seize goods from their tenant\u2019s premises.<\/p>\n\n\n\n There are various advantages to the CRAR process for commercial landlords. One advantage is that it is a fast process for a landlord to recover unpaid rent. Also, they do not need to obtain a court order to use the process. Accordingly, they can avoid delays and costs associated with court procedures. <\/p>\n\n\n\n A landlord can only use CRAR where the rent is at least seven days late. This could be advantageous for a landlord as it is relatively soon after the rent is due. It means a landlord does not have to wait for an extended period of missing rent before taking action. CRAR assists landlords to recover missing rent and not fall into financial difficulty themselves. <\/p>\n\n\n\n Additionally, when a landlord uses CRAR, an enforcement agent will enter the commercial premises, whether open or locked. The enforcement agent will then seize goods up to the value of missing rent. This is an advantageous aspect of the process, as it guarantees the recovery of missing payments.<\/p>\n\n\n\n A landlord can recover the CRAR costs from their tenant, as well as any subtenant.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nAdvantages for Landlords<\/h2>\n\n\n\n