Commercial Rent Arrears Recovery In Birmingham

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Commercial Rent Arrears Recovery In Birmingham

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In recent years, it has become more common for businesses in Birmingham to rent properties instead of buying a property outright.

Choosing to rent a commercial property has become a popular choice for a large number of businesses.

For smaller businesses, renting a property could be beneficial as they cannot accurately predict the monthly turnover.

When an organisation proceeds to rent out a property, this will be arranged and finalised in commercial leases.

The commercial lease will be signed by both landlords and tenants and will outline what the tenant’s obligations are.

This will also detail any terms and conditions, caveats, service charges, payment terms, rights of forfeiture etc.

Despite the fact that the agreement has been signed, sometimes a tenant may not pay rent for one reason or another.

This is an unfortunate reality for every landlord, as they rely on the payment of rent to stay afloat.

If unpaid rent occurs, this can damage the landlord’s cash flow and affect its longevity.

The non-payment of commercial rent by a business is classed as Commercial Rent Arrears.

When this happens, landlords need to take action to recover rent arrears that are outstanding.

Whilst many will use winding up petitions to recover that money, this is not always effective.

A clear solution is needed to recover the rent owed on commercial premises to landlords. This is where the Commercial Rent Arrears Recovery (CRAR) procedure can be successful.

commercial rent arrears recovery birmingham

What Is Commercial Rent Arrears Recovery (CRAR)?

Commercial Rent Arrears Recovery (CRAR) is a very common way for landlords to take control of goods in the interest of unpaid rent.

This allows landlords to seize goods from a tenant to cover the amount of arrears that are owed.

Seizing goods from a tenant may seem like an excessive recovery method, however, this is normal. The recovery of commercial property rent arrears is relatively straightforward.

Before Commercial Rent Arrears Recovery can take place, a notice of enforcement is to be sent to the tenant with at least 7 days notice.

High court enforcement agents will enter the property to take control of tenant goods that are owed.

Alternatively, commercial landlords can choose to terminate the lease instead of using CRAR.

If a landlord wishes to terminate the lease, this process is commonly referred to as ‘forfeiture’.


If the agreement within the contract is breached by the commercial tenant, the landlord has a right to terminate the lease.

If the rent hasn’t been paid for a specific amount of time this is when the lease can be terminated. The period of time is outlined in the original agreed commercial lease.

Termination of the lease is something that many commercial landlords use as an alternative to Commercial Rent Recovery.

If the lease is terminated, agents will be tasked with entering the property and recovering possessions from the tenant.

Commercial Rent Arrears Recovery and Forfeiture Suspensions

If you are considering the above two methods, you need to know about the suspensions related to them.

In March 2020, the government introduced a suspension on the use of CRAR and Forfeiture.

The suspension was introduced as an encouragement for landlords to resolve rent disputes through the process of binding arbitration.

In June 2021 it was extended to 25 March 2022, leaving landlords in a difficult position.

Thankfully, there is a dedicated solution available for all landlords to recover rent in arrears.

The light at the end of the tunnel comes in the form of instructing a professional debt collection agency.

Debt collection agencies are by far the most effective way of recovering commercial rent arrears.

Commercial Rent Arrears Recovery – Birmingham

Speak to a debt collection expert

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

Commercial Rent Arrears Recovery Debt Collectors

Debt Collection Agencies have quickly become the fix needed for landlords that have struggled with the suspension of CRAR.

This recovery method presents industry-leading success rates at an affordable cost.

Whilst there are hundreds of agencies across the UK, it will benefit landlords to choose a local one.

At Debt Collection Birmingham we provide our clients with expert recommendations for agencies in the city.

We have helped hundreds of landlords since 2006 recover commercial rent arrears that are owed to them.

Our partners focus on ensuring a service that maximises results whilst minimising costs.

If you are a commercial landlord that has tenants withholding rent payments, look no further.

Commercial Rent Recovery Agency Recommendations

If the commercial tenant is a business, we recommend using Federal Management to recover the rent that is owed.

As the UK’s leading commercial debt collection agency, they have recovered rent for landlords since 2004.

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

If the lease is signed by an individual and they have failed to pay rent, our recommendation is Frontline Collections.

Frontline Collections are experts in the recovery of private debts, especially ones related to private rent arrears.

Since 2005, they have quickly become the UK’s first choice for private debt collection.

Both of our partners produce outstanding recovery rates of up to 90% on average.

Commercial Rent Arrears Recovery – Birmingham

Speak to a debt collection expert

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

Debt Collection Birmingham – Frequently Asked Questions

Who Are Debt Collection Birmingham?

We began in 2006 as part of the UK Debt Collection Bureau network. We act as a referral agency for Birmingham’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 Rent Owed?

When encountering a tenant that won’t pay, 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 related to rent. This will maximise the potential for a successful recovery and guarantee a maximum return on your debt.

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