Commercial rent arrears recovery guide

Landlords of commercial premises need to consider the methods available to recover late rent, as recovery attempts will more than likely affect any right they have to bring the lease to an end because of the breach.

Options for recovering rent arrears:

There are six main options this guide discusses, exploring the advantages and disadvantages. These options are:

• Issue a county court claim for the sums due for rent (and any other charges such as service charges, insurance, etc.)
• Exercise commercial rent arrears recovery (CRAR)
• Divert subtenant rent to the landlord
• Draw down on a rent deposit
• Pursue a guarantor or pursue a former tenant if the lease has been assigned
• Forfeit the lease and take possession

PLEASE NOTE: The information enclosed in this guide was written pre COVID-19 pandemic.

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