Commercial Rent Arrears Recovery: causing distress for landlords

By Sian Walker

The Taking Control of Goods Regulations 2013 were passed on 26 July 2013, bringing major changes to commercial landlords’ ability to recover rent from defaulting tenants when the regulations come into force on 6 April 2014.

The new Commercial Rent Arrears Recovery (CRAR) system will replace landlords’ common law right of distress. Distress enables landlords to attend unannounced at their defaulting tenants’ premises and take away goods to secure payment of rent arrears.

This current self-help remedy is a very effective and relatively inexpensive tool for commercial landlords, but the introduction of CRAR will abolish landlords’ ability to exercise distress…

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