Properly Management

Question 1

What options are available to the landlord where the tenant is in debt?

Answer 1

1. Talk to tenant to understand whether they can’t, won’t or needs help.
2. Payment plan.
3. Rent Deposit
4. Guarantors/ AGA
5. Sub tenant
6. CRAR
7. Former tenant if its pre 1996
8. Statutory Demand
9. Fortfeiture
10. Court

Question 2

CRAR - Commercial Rent Arrears Recovery
Legislation, notices, process, exemptions

Answer 2

Legislation
-Taking Control of Goods Regulations 2013, -Tribunals, Courts and Enforcement Act 2007

Notices
- 7 days’ written notice by certified enforcement agent is permitted to take control of goods to pay off the arrears.
- authorised subtenant 14 days notice required
-12 months to seize goods
-7 days notice of sale

Requirements
-commercial premises
- pure rent (including any VAT and interest)
- debt outstanding 7+ days.
- Not insurance or service charge.
-there is an existing written lease or a written proof of tenancy at will
- tenant is still in the property
- You do not have the right to seize your tenant’s goods yourself; they can only be seized by a certified enforcement agent
-business hours only

Exemptions
- Tools of the trade up to £1,350 in value, only applies to individual not a business.
- Items not owned by the tenant