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Recovery Of Rent From A Commercial Tenant – Do I Have to Use CRAR?

We have received a number of enquiries following the introduction of Commercial Rent Arrears Recovery (CRAR) as to whether the new regime has to be used in preference to other methods of recovery.

In short, the answer is that you do not have to use CRAR, and the other existing remedies to recover commercial rent arrears remain available (save for distress for rent which CRAR replaces) including:

  • Court Claim- issuing a claim against the tenant for arrears of rent, interest, and costs;
  • Forfeiture- if the right to forfeit is contained within the lease;
  • Deduction from a Rent Deposit – subject to the terms of the rent deposit deed;
  • Recovery from a guarantor; and
  • While modified by CRAR, diverting sub-tenant’s rent to the landlord.

For more information please contact Julian Johnstone, Partner or Benjamin Lomer, Senior Associate, in Druces LLP’s Property Litigation team.