BAILIFF Services /  COMMERCIAL RENT ARREARS RECOVERY / CRAR

CRAR stands for Commercial Rent Arrears Recovery


CRAR is a method of enforcement that allows landlords of commercial premises to recover rent arrears without a Court order  by asking Enforcement Agents (Bailiffs) to take control of the tenant’s goods (and if necessary), sell them.


Commercial Rent Arrears Recovery
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Commercial Rent Arrears Recovery (CRAR)  is a statutory process in the United Kingdom that allows landlords to recover unpaid rent from commercial tenants. It enables landlords to instruct enforcement agents to seize goods from the tenant's premises to recover the debt. UK Bailiffs provides a professional and efficient CRAR service, ensuring landlords can recover outstanding rent while complying with legal requirements.


Introduced under the Tribunals, Courts and Enforcement Act 2007, CRAR replaced the ancient common law remedy of "distress for rent." It allows landlords of commercial properties to take control of a tenant's goods without going to court, provided certain conditions are met. CRAR is a non-court procedure, making it a quick and cost-effective solution for landlords dealing with rent arrears.

Our CRAR Process



  1. Instruct us online - our online form takes a few minutes to complete and generates an automated Warrant.
  2. Initial Assessment: UK Bailiffs conducts a review of the lease agreement and outstanding rent to confirm eligibility for CRAR.
  3. Notice of Enforcement: A 7-day Notice of Enforcement is issued to the tenant, giving them an opportunity to pay the arrears before enforcement action is taken.
  4. Enforcement Action: If the tenant does not settle the arrears, UK Bailiffs' enforcement agents attend the premises to take control of goods, in accordance with the regulations set out in the Taking Control of Goods (Fees) Regulations 2014.
  5. Sale of Goods: If payment is not made, the seized goods may be sold at auction to recover the debt.
  6. Detailed Reporting: Full documentation and photographic evidence are provided throughout the process to ensure transparency and compliance.

Advantages of Using CRAR


No Court Involvement: CRAR is a non-court procedure, making it faster and less costly than litigation.

Efficient Debt Recovery: Provides landlords with a streamlined method for recovering rent arrears.

Legal Compliance: Ensures all actions are taken in accordance with UK legislation, minimizing the risk of legal disputes.


Legislation Governing CRAR


Tribunals, Courts and Enforcement Act 2007: Establishes the legal framework for CRAR, replacing common law distress for rent.

Taking Control of Goods Regulations 2013: Outlines the procedures for enforcement agents when taking control of goods.

Taking Control of Goods (Fees) Regulations 2014: Specifies the fee structure for enforcement actions.

CRAR Legal team

VAT on CRAR Enforcement Fees - What You Need to Know


Recent changes by HMRC and HCEOA regarding VAT on Commercial Rent Arrears Recovery (CRAR) enforcement fees:

  • For Non-VAT Registered Landlords:
  • The tenant (debtor) will be responsible for the VAT on top of the enforcement fees. (For Example) If the enforcement fee is £310, the tenant would pay £372, with £62 being VAT.
  • For VAT Registered Landlords:
  • The tenant will pay the (example) enforcement fee of £310 directly to us. On receipt of this payment, UK Bailiffs will issue you an invoice for the £62 VAT. Once you pay this VAT to us, you will be able to reclaim this amount from HMRC.


INSTRUCTION FORM


Completing the form does not constitute a contract or acceptance of the instruction.

Once submitted, we will email you a copy of the Warrant for acceptance and then we will begin the process. We may also request further details as part of our due diligence procedures. If you have any questions in relation to the instructions, please email us HERE or phone 03301331818


What is CRAR?

Commercial Rent Arrears Recovery (CRAR) is a statutory enforcement mechanism allowing landlords to recover unpaid commercial rent by seizing and selling tenant goods. Introduced on 6 April 2014, it replaced the historical common law remedy of distress.

Who Can Use CRAR?

A landlord under CRAR is defined as the person entitled to the immediate reversion in the leased premises. This means if a tenant defaults on rent, the landlord can initiate CRAR.

Where Does CRAR Apply?

  • Applies to written commercial leases(including equitable leases and tenancies at will).
  • Excludes licences and tenancies at sufferance.
  • Does not apply to mixed-use premises unless residential use breaches the lease.
  • Triggering CRAR waives forfeiture rights for that rental period.

What Rent is Recoverable?

Recoverable rent includes:

  • Base rent for possession and use of the premises
  • VAT and interest on rent

Excluded amounts:

  • Rates
  • Service charges
  • Repairs, insurance, and maintenance costs

For inclusive rents, only the portion directly related to occupation is recoverable.

Conditions to Enforce CRAR

  • The tenant must already be in arrears before issuing the Notice of Enforcement.
  • The amount owed must be clear and quantifiable.
  • Unpaid rent must equal or exceed seven days’ rent.
  • The tenant must still be in arrears when goods are seized.
  • A minimum of seven clear days’ notice must be given to the tenant.

Authorising an Enforcement Agent

The landlord must issue a written instruction authorising the enforcement agent to act. The instruction must include:

  • Date of instruction
  • Landlord’s name and contact details
  • Agent’s identity
  • Premises identification
  • Amount of rent owed and period due

Can CRAR Be Used After a Lease Ends?

Yes—if the goods were seized before lease termination or if rent was due and:

  • The lease didn’t end by forfeiture
  • The lease ended within the last six months
  • Rent was due at lease end
  • The tenant remains in part-possession
  • A new lease is also commercial
  • The landlord retains the immediate reversion

Recovering Rent from an Under-Tenant

Landlords can issue a Section 81 Notice to an under-tenant when the immediate tenant has defaulted. This notice compels the under-tenant to redirect rent payments to the superior landlord.

Section 81 Notice Requirements:

  • Landlord’s name and notice date
  • Total rent owed
  • Instructions for direct rent payment
  • Right to withdraw under Paragraph 55

If the under-tenant fails to comply, they become the immediate tenant for enforcement purposes—enabling CRAR and other remedies.

Summary: Why CRAR Matters

CRAR provides landlords with a structured and legally robust method to recover rent arrears efficiently. While it offers many advantages, including speed and cost-effectiveness, it must be used with attention to legal thresholds and tenant rights.

Questions and Answers?

  • What is CRAR

    Commercial Rent Arrears Recovery replaced Common Law Distress for Rent in April 2014.


    CRAR is a self help remedy and as such does not require leave from the Court. 


    A landlord can instruct enforcement agents (formerly known as bailiffs) to collect the rent or take control of goods.

  • Do I need a Court Order to instruct bailiffs to collect rent??

    No.  CRAR is a self help remedy and as such does not require leave from the Court. 

  • Under what circumstances can CRAR be used?

    CRAR may only be used on commercial premises and there must be a written lease in place. (If the premises are mixed use or residential use, you will need to obtain a judgment to recover arrears)


    CRAR may only be used to recover rent, interest and VAT. ( If you need to recover other charges such as insurance or service charges, we can help separately).


    The rent must be at least seven days in arrears and the rent owed must be for the value of at least 7 days’ rent.


    The Enforcement Agent (Bailiff) must give the tenant at least 7 days’ notice (excluding Sundays and bank holidays) that he is exercising his right to use CRAR. 


    The rent must still be unpaid at the time the notice is served, as well as immediately before any goods are seized.


    The notice must be served, either by post, hand, fax and electronic communications such as email. Notice will be valid for 12 months.

  • What does Taking Control of Goods mean?

    A Certificated agent will attend your tenants property and take control (seize) of internal and external assets.



    If payment is not received then these goods can be sold at auction to recover money.

  • Are you required to give the tenant notice?

    Previous regulations (Distress for Rent) provided the element of surprise. With no prior notice, the bailiff could turn up and seize your tenants goods. 


    By contrast, under the new regulations of CRAR, we must give the tenant at least 7 clear days notice in writing.


    We will usually send the letter out on the next working day after we have received your instruction.

  • Can anyone take Control of Goods?

    Regulations state that only a Certificate Enforcement Agent may take Control of Goods.


    All of our Agents are Certificated and experienced in collecting Commercial rent arrears.

  • Can I forfeit the lease if you are unsuccessful?

    Not in that quarter/ rent period..  


    By exercising CRAR you are effectively agreeing continuation of lease. 

  • When will I get my money?

    All cleared funds less fees will be paid into your nominated bank witthin 2 working days.

  • Do you set your own fees?

    All fees are set by the Ministry of Justice  and are passed on to your tenant.

Contact A Recovery Specialist

Commercial Rent Arrears Recovery (CRAR) Section 73 Tribunal Courts and Enforcement Act 2007