Commercial Rent Arrears Recovery (CRAR)
Written by Scott Jones, founder of CommercialPropertyKiln · Last updated
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CRAR lets a commercial landlord recover rent arrears by taking control of the tenant's goods, without a court judgment. It replaced the old law of distress and has strict conditions.
When CRAR is available
CRAR applies only to purely commercial premises let under a written lease where the tenant is in occupation, and only to principal rent (not service charge or insurance unless the lease designates them as rent). There must be at least seven days' net rent outstanding.
The process
You instruct a certificated enforcement agent, who serves a Notice of Enforcement. From 1 May 2026 this gives the tenant 14 clear days (excluding Sundays and bank holidays) to pay, up from seven. If the arrears are not cleared, the agent can attend, take control of goods, and ultimately sell them.
The forfeiture trap
Using CRAR waives your right to forfeit the lease for that arrears, because it treats the lease as continuing. You cannot both seize goods for the rent and forfeit for the same non-payment, so choose your remedy deliberately. See forfeiture.
Weigh the options
CRAR is quick and avoids court, but recovering value depends on the tenant having goods worth taking. Where the tenant is insolvent, different rules apply: see tenant insolvency. Take advice on whether CRAR, forfeiture or a debt claim is the right route.
How much notice does CRAR require?
From 1 May 2026 the Notice of Enforcement gives the tenant 14 clear days (excluding Sundays and bank holidays) to pay before goods are taken.
Can I use CRAR and forfeit at the same time?
No. Using CRAR waives your right to forfeit for that arrears, because it treats the lease as continuing.