Commercial Rent Arrears Recovery In Sheffield

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Commercial Rent Arrears Recovery In Sheffield

In the modern business world, many organisations are choosing to rent properties instead of buying a location outright.

Renting commercial properties has become a popular thing in recent years for a large percentage of companies.

In order to finalise and arrange this, landlords and tenants will use commercial leases as agreements

The leases outline any terms and conditions, service charges, payment terms, rights of forfeiture etc.

This is to be signed by both parties so each knows what their obligations are in regards to the commercial property.

Due to the increase of commercial premises being rented out, this has resulted in an increase in unpaid rent.

The payment of rent is obviously a very important part of a commercial landlord’s life as this is how they stay afloat.

If a tenant simply refuses to pay rent, this can damage the cash flow of the landlord’s business.

When commercial tenants refuse to pay what is owed, this is classed as Commercial Rent Arrears.

It is clear that landlords in the commercial property industry need a solution to recover rent arrears.

Some may use statutory demands and winding up petitions to recover the money that is owed but these are not always effective.

Thankfully, there is a definitive way for landlords to take control and recover what is owed to them.

The procedure they can carry out is called Commercial Rent Arrears Recovery(CRAR).

commercial rent arrears recovery

What Is Commercial Rent Arrears Recovery (CRAR)?

Commercial Rent Arrears Recovery (CRAR) has quickly become one of the most popular ways for landlords to take control of goods.

Commercial Rent Arrears Recovery allows landlords to seize any goods from a tenant that has not paid rent to cover the arrears owed.

The process of this may seem challenging if you have not experienced it before, however, it is relatively straightforward.

Any commercial tenant that has not been able to keep up with rent payments are liable for any arrears.

A notice of enforcement is to be sent to the tenant with at least 7 days notice before CRAR takes place.

The landlord may want to terminate the lease instead of using this method of recovery.

Terminating the lease of a commercial property is commonly referred to as ‘forfeiture’.

Forfeiture

This is the landlord’s right to terminate any lease if the agreement in the contract is breached by the tenant.

This only applies if the rent remains unpaid for a specific period of time. The period of time is documented in the contract related to the lease.

Terminating the lease is a common method for landlords that have been struck by tenants that do not pay.

When the lease is terminated, high court enforcement agents will often be tasked with recovering possessions from tenants that haven’t paid.

Suspensions to Commercial Rent Arrears Recovery and Forfeiture

It is worth noting that in March 2020, the government introduced a ban on the use of Commercial Rent Arrears Recovery and Forfeiture.

This is due to the encouragement that landlords should resolve rent disputes through the process of binding arbitration.

It was announced in June 2021 that the suspension/ban was being extended to 25 March 2022.

The suspensions that have been carried out have left landlords that are owed money in a difficult position.

It should provide you with hope and peace of mind to know that there is a light at the end of the tunnel.

The next viable option for the recovery of commercial rent arrears is by using a professional debt collection agency.

Commercial Rent Arrears Recovery – Sheffield

Have Any Questions? Get In Contact With Our Experts Now!

Our recommended team of Debt Collection Experts are happy to help with your enquiries.

Choosing A Commercial Rent Arrears Recovery Debt Collector

As a result of the suspension to CRAR, landlords across the United Kingdom have needed a fix.

A professional debt collection agency has been commonly known to be the solution to this.

There are hundreds of debt collection agencies in the UK that are experts at providing an alternative to commercial rent arrears recovery.

Whilst these agencies will provide a nationwide service, it is better to use one that is local to you.

At Debt Collection Sheffield, we provide the easiest way for our clients to find the best local agencies.

Since 2006, we have helped many commercial landlords to recover amounts of rent that are owed.

If you are a landlord that is owed commercial rent, we can provide you with hassle-free service.

Our partners provide a service that maximises the recovery and minimises the cost.

Our Debt Collection Agency Recommendations

Our recommended agency for the recovery of commercial rent arrears is Federal Management.

Since 2004, they have helped thousands of commercial landlords on a yearly basis recover what is owed.

They have quickly become the UK’s leading commercial debt collection agency, providing an effective service.

They are also regulated and authorised by the Financial Conduct Authority (FCA) to collect debts under the Consumer Credit Act.

If the lease is linked to an individual, rather than commercial rent, we recommend using Frontline Collections.

Frontline Collections specifically recover debts that are owed by individuals and have done since 2005.

They are leaders in private debt collection and have helped hundreds of landlords recover individual rent arrears.

If the debt collection scenario is related to rent that is owed overseas, they can assist with this also.

International Debt Collection is perceived to be a difficult task to undertake, but this is no match for the experts.

Commercial Rent Arrears Recovery – Sheffield

Have Any Questions? Get In Contact With Our Experts Now!

Our recommended team of Debt Collection Experts are happy to help with your enquiries.

Commercial Rent Arrears Recovery In Sheffield – Summary

To summarise, the collection of commercial rent arrears can be a challenging task for all commercial landlords.

The suspensions related to CRAR and Forfeiture has resulted in the need for a dedicated solution.

A professional debt collections agency is by far the most effective method for the recovery of rent arrears.

If you are a landlord and have a business failing to pay rent on time or at all, contact our partners today.

Debt Collection Sheffield – Frequently Asked Questions

Who Are Debt Collection Sheffield?

We began in 2006 as part of the UK Debt Collection Bureau network. We act as a referral agency for Sheffield’s best debt collection companies.

How Much Does It Cost To Use Your Services?

Our service is free and takes the hassle out of you having to approach numerous debt collection agencies.

Why Should A Debt Recovery Agency Be Used To Recover Money Owed?

When encountering a bad debtor, you will see much success by hiring a debt collection agency with expertise in such matters.

Should I Choose A Debt Recovery Company Or A Solicitor?

The simple fact that some of the UK’s largest law firms use our partners provides the answer to that one.

What Success Rates Do Your Partners Offer?

Our partners have recovered as much as up to 90% of undisputed debts. This will maximise the potential for a successful recovery thus guaranteeing a maximum return on your debt.

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