As from 6th April 2014 landlords will no longer
be able to use the ancient common law remedy of distrain ie sending in the
Bailiffs for unpaid rent.
The new Process is called CRAR (commercial rent arrears
recovery process). This process will involve giving notice to the
tenant, something which a landlord has not had to do before.
A landlord will only be able to use this new process where
they are owed pure rent, ie the principal rent plus vat on the rent, if it is
vatable, plus interest.
NOT COVERED BY CRAR
Landlords will not be able to claim for items which are not
pure rent such as service charge, rates, council tax, insurance premiums,
repairs and maintenance even if they are defined as rent in the lease.
Claims for unpaid rent on mixed use premises, eg a shop with
living accommodation attached, will not be covered under CRAR.
A Landlord will also not be able to use CRAR where the
lease is not in writing.
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