LANDLORD AND TENANT - 21.10.2020

Commercial Rent Arrears Recovery changes

Statutory right. Commercial Rent Arrears Recovery (CRAR) came into force in AprilĀ 2014. It is a statutory procedure which allows landlords of commercial premises to recover rent arrears by entering premises, taking control of the tenantā€™s goods and then selling them. CRAR applies to a commercial tenancy regardless of whether any reference is made to it in the agreed lease.

More time added. On 29Ā SeptemberĀ 2020 , because of the pandemic, the minimum amount of net unpaid rent required before a commercial landlord can exercise its CRAR rights in England and Wales was increased to an amount equal to 276Ā daysā€™ rent. On 25Ā DecemberĀ 2020 this will further increase to 366Ā daysā€™ rent. Ordinarily, only seven daysā€™ rent arrears is required. A landlord cannot exercise CRAR rights where the commercially rented premises are unoccupied but a tenant is still liable to pay rent where the landlord closes the building.

On 29Ā SeptemberĀ 2020 the minimum amount of net unpaid rent required before a landlord can exercise its Commercial Rent Arrears Recovery rights was increased to 276 daysā€™ rent. On 25Ā DecemberĀ 2020 this will further increase to 366Ā daysā€™ rent.

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