Alternative Options to Recover Rent Arrears if you can’t use CRAR

CRAR is one of the most effective ways to recover commercial property rent arrears, however, strict rules are in place that are not always easy to comply without giving your tenant some wriggle room.  

Fortunately there are some alternative ways to recover rent arrears you can use to cover your losses or even gain the rent back in full. One option is to use the rent deposit that was taken from your tenant at the start of their tenancy.  In some cases this may be sufficient, however if other payments remain outstanding or if there are any other breaches to the tenancy agreement, you will already have used up the funds increasing the urgency to recover arrears by other means. In some agreements the tenant will be required to top up payments, however, this is unlikely to be the case if they are already getting behind with their rental payments.  

Another option sometimes used is to claim back rent arrears from a guarantor which is worth pursuing if the guarantor signed up to being liable if the terms of the lease are breached.  

If you require advice on recovering commercial rent arrears, please contact one of our experts on 0800 002 9049 to discuss the options available in your particular case.