Options for Commercial Rent Arrears: CRAR vs Lease Forfeiture Explained

What are my options when my Commercial tenant does not pay?

When a tenant falls behind on rent, landlords have two main quick options for commercial rent arrears:

• Commercial Rent Arrears Recovery (CRAR)
• Lease Forfeiture by Peaceable Re-entry

Both methods have advantages and limitations and choosing the wrong one can impact your ability to recover arrears effectively.

You can of course use a court claim or the insolvency act to pursue the tenants or the guarantor but that does not form part of this article see debt recovery.

Hello, I’m Andrew Coates, an Authorised High Court Enforcement Officer (HCEO) with a Level 4 Diploma in Enforcement.

Today, I want to explain have two main quick options for commercial rent arrears and how they can help you recover your arrears or at least get your property back.

Contact our High Court Enforcement Experts

To discuss your requirements, contact one of our regional centres today to assist you with recovering your property quickly and efficiently.

CRAR vs Lease Forfeiture: Key Differences

CRAR allows landlords to recover unpaid rent without ending the lease, but it comes with restrictions:

• You must give notice before taking action. At the time of this article 7 clear days but shortly legalisation will change this in 2026 to 14 days or 28 with a request from an approved debt advisor
• CRAR cannot recover service charges or insurance costs, only rent.

Lease forfeiture, on the other hand, is a stronger remedy.

• Once enforced, the landlord regains possession, often prompting tenants to pay quickly.
• However, forfeiture ends the lease, meaning CRAR is no longer available.

Important Legal Limitation: You Can Only Choose One

Landlords must understand that you cannot use both CRAR and forfeiture for the same arrears:

• If you attempt CRAR and it fails, you may waive your right to forfeit until the next rental period.
• If you choose forfeiture, the lease ends immediately, so CRAR is no longer an option.

This makes it crucial to decide which remedy aligns best with your goals — recovering rent or regaining possession.

Mixed-Use Properties: No CRAR or Peaceable Re-entry

Neither CRAR nor peaceable re-entry applies to mixed-use properties. In these cases, landlords must:

• Issue court proceedings for forfeiture, or
• Take action under the Insolvency Act.

This restriction exists because CRAR is limited to purely commercial premises under Section 75 of the Tribunal Courts and Enforcement Act 2007.

The Court of Appeal clarified in Pirabakaran v Patel (2006) that properties “let wholly or partly as a dwelling” cannot be forfeited by peaceable re-entry.

Attempting to do so would breach the Protection from Eviction Act 1977.

We Can Help

At Quality Bailiffs, we have over 25 years of experience enforcing warrants and resolving commercial rent arrears issues.

Whether you need guidance on CRAR, lease forfeiture, or court-based solutions, our team can help you choose the right option.

Frequently Asked Questions for Commercial Rent Arrears

Conclusion: Why CRAR Often Fails

While CRAR can be a useful tool, its success depends on the value of goods available for seizure.

If the landlord believes the tenant’s goods will not cover the cost of removal and sale at public auction, CRAR offers little leverage.

For example, in a barber shop, there may be only a few scissors and chairs — items that are practically worthless.

In such cases, CRAR is ineffective, and landlords often turn to forfeiture for a faster resolution.

At Quality Bailiffs, we have the experience and expertise to handle these cases efficiently and professionally.

About the author

This article was written by Andrew Coates, Authorised High Court Enforcement Officer and full member of The High Court Enforcement Officers Association, and current CEO of Quality Bailiffs.

Andy has a Level 4 diploma in High Court Enforcement, and over twenty five years of experience in the bailiff and investigation industry. He is a former governing council member of both CIVEA and ABI.

Disclaimer
This article provides general information and does not constitute legal advice. It is essential to consult with a qualified legal professional for advice tailored to your specific circumstances.

More Articles

• Commercial Rent Arrears and insolvency options
• Landlord guide to Fast evictions
• Forfeiture of lease how to guide
• Debt recovery and legal action
• Mixed-Use Property Enforcement Options
• Commercial Rent Arrears Recovery (CRAR) Explained

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