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Landlords, Should You Forfeit or Proceed with CRAR?

Posted: 10/25/2017 at 9:19 PM   /   by   /   comments (0)

Landlord ended the tenants leaseWhen caught in a situation where they are unable to retrieve rent owed, landlords have to decide whether they should proceed with CRAR or forfeit. Every situation is different, and so is the solution for its issues. Before you get in touch with commercial bailiffs, understand the different approaches first.


Forfeiture means you will end the tenant’s lease. This lets you have control over your property again, but it will not help you obtain outstanding rent. You cannot seize all the assets that they left on the property, so you could sell it and recover the debt. If you choose to forfeit the lease, you lose your right to practice CRAR.

Although locking the tenant out of your property, even if they have their belongings backs, may prevent them from doing their routine tasks, like going to work. This can help convince them to settle the outstanding rent.

Commercial Rent Arrears Recovery

As you are probably already aware, CRAR replaced Distress Rent. Nevertheless, it still allows landlords an advantaged right over other creditors. They can declare warrants of control to Certificated Enforcement Agents against tenants that are in rent arrears in their property. You can only release a warrant for rent, but not a warrant for insurance or service charges. The Certificated Enforcement Agents will also need to serve or send a Notice of Enforcement.

Lease forfeiture will be able to help you get your property back rapidly, and this threat might get the tenant to pay their outstanding rent hastily. On the other hand, you will be able to get your costs and rent paid with CRAR. Now that you are aware of the difference between these two tactics, you will be able to determine which is best for your situation. You will also be able to figure out the fastest way to get their debts settled.