When commercial rent goes unpaid, most landlords don’t jump straight to formal action. The usual starting point is conversation – reminders, follow-ups, and the hope that things will settle once the tenant catches their breath. Sometimes that works. Sometimes it doesn’t.
When arrears continue to build and communication starts to stall, landlords often begin looking for a more structured way forward. That’s usually when Commercial Rent Arrears Recovery, commonly known as CRAR, enters the discussion.
CRAR is a legal process that allows landlords to recover unpaid rent by taking control of a tenant’s goods. It isn’t designed for residential properties and doesn’t apply where any part of the premises is lived in. It also relies on there being a written lease in place and the tenant still occupying the property. Those limits are important, because CRAR is meant to deal with ongoing commercial relationships rather than historic disputes.
Before anything else happens, the tenant must be given notice. In simple terms, this is a warning period – usually seven days – during which the tenant can pay what’s owed or raise any issues before enforcement is considered. For some tenants, that notice alone is enough to prompt action. It formalises the situation and makes it clear that the arrears aren’t going to be left to drift.
If payment still doesn’t come in, certified enforcement agents can attend the premises. Entry has to be peaceful, which means no forced access and no confrontation. Once inside, agents can identify and take control of goods belonging to the tenant, with the intention of selling them if the arrears remain unpaid.
Not everything on the premises can be taken, particularly those needed for the tenant’s trade up to a set value, and anything that doesn’t actually belong to the tenant. An inventory is provided, and if goods are sold, they must be sold properly, with any surplus returned once the arrears and costs have been covered.
Timing also plays a role. CRAR isn’t open-ended. There are limits on how long landlords and enforcement agents have to act, and set periods around valuation and sale once goods are taken control of.Those time limits are there to stop things dragging on indefinitely, but in reality every case moves a bit differently. Some situations progress quickly, others stall, and a lot depends on how the tenant responds once enforcement is mentioned.
From the tenant’s side, a notice of enforcement can come as a shock, especially if things have gone quiet for a while. It doesn’t mean they suddenly lose all rights, though. There are still limits on when visits can take place, and tenants are usually given the chance to raise issues if they believe the figures are wrong or something has been missed.
In some cases, enforcement slows down rather than speeds up. Disputes get raised, questions come back, or payments are promised but not quite made. Where insolvency is involved, things can shift again. Once formal insolvency proceedings start, CRAR may no longer be an option at all, and landlords often find themselves having to change approach part-way through.
That’s why timing tends to matter more than people expect. The longer arrears sit unresolved, the fewer routes remain open. What looks like a manageable delay early on can become much harder to deal with later.
It’s also worth saying that CRAR doesn’t always end with goods being taken or sold. Quite often, the process changes the dynamic instead. Once enforcement agents are involved, conversations that weren’t happening before suddenly start to move, and payment or proper engagement follows.
At Churchill Recovery Solutions, we’re usually brought in once informal chasing has run out of road. Our focus is on using CRAR carefully and proportionately, with a clear view of what’s actually likely to work in that situation, rather than applying pressure for the sake of it. Our role is to make sure CRAR is used appropriately, within the rules, and with an understanding of the wider situation – not simply applied as a blunt tool.
CRAR isn’t right for every case, but when it’s used at the right point, it can stop arrears from growing and bring clarity back to a situation that’s started to feel stuck.