TCEA 2007 Part 3: Commercial Landlord Enforcement Without a Court Order

Commercial Rent Arrears Recovery (CRAR) Guide 2026

CRAR (Commercial Rent Arrears Recovery) guide 2026: statutory replacement for distress under TCEA 2007 Part 3 (in force 6 April 2014); commercial premises only (no residential use; written lease required; not licences); minimum 7 days' net principal rent outstanding; certificated enforcement agent required; 7-day notice of enforcement; takes control of tenant's goods; goods sold at public auction if unpaid; principal rent only — NOT service charges; insolvency: administration moratorium prevents CRAR; compulsory liquidation bars CRAR entirely; Scotland: court decree required; NI: court judgment required.

8 min readUpdated 7 June 2026Last reviewed: 17 May 2026commercialCRARrent arrearsenforcement

Who can use CRAR, the 7-day notice and what can be seized

CRAR applies only to commercial premises let under a written lease with no residential use. Minimum net unpaid principal rent: 7 days' worth (annual rent ÷ 365 × 7). Certificated enforcement agent required (landlord cannot act personally). Procedure: (1) instruct certificated enforcement agent; (2) enforcement agent serves 7-day Notice of Enforcement on tenant (amount owed; date of proposed attendance; consequences of non-payment); (3) if unpaid: enforcement agent takes control of tenant's goods (Controlled Goods Agreement or removal); (4) if still unpaid: public sale with at least 7 days' notice. CRAR covers principal rent ONLY — not service charges, insurance or other payments unless reserved as rent in the lease. Enforcement agent fees regulated: compliance stage £75; enforcement stage £235 + 7.5% of amount recovered above £1,500.

Insolvency restrictions, Scotland and NI

Insolvency restrictions: (a) administration — moratorium under Insolvency Act 1986 Schedule B1 para.43 prevents CRAR without administrator's or court's consent; act before insolvency proceedings begin; (b) compulsory liquidation — CRAR stays entirely after winding-up order; (c) CVA — does not automatically prevent CRAR but legal advice required. Scotland: no equivalent to CRAR; commercial landlords need a court decree for payment, enforced through summary diligence on a registered lease or attachment of goods under the Debt Arrangement and Attachment (Scotland) Act 2002. NI: common law distress abolished by the Law Reform (Miscellaneous Provisions) (NI) Order 1981; no CRAR equivalent; commercial landlords must obtain a court judgment and enforce through the Enforcement of Judgments Office (EJO).

Frequently asked questions

Can I use CRAR to recover unpaid service charges from a commercial tenant?+

No — CRAR only covers the element of the tenant's payments reserved as 'rent' in the lease. Service charges, insurance premiums, and administration fees are not recoverable via CRAR unless expressly reserved as rent in the lease.

Can a landlord use CRAR for a property with a residential flat above a commercial unit?+

No — if any part of the premises demised under the lease is used as a dwelling, CRAR cannot be used for that lease. The residential and commercial elements should be let under separate leases.

What happens if my commercial tenant goes into administration while I am using CRAR?+

An administration moratorium (Insolvency Act 1986 Schedule B1 para.43) prevents CRAR without the administrator's or court's consent. In compulsory liquidation (winding-up order), CRAR is stayed entirely. Act early when a tenant shows signs of financial distress.

What is the minimum amount of rent arrears needed to use CRAR?+

Minimum 7 days' net principal rent: annual rent ÷ 365 × 7. For a property let at £52,000/year, the minimum is approximately £996. Service charges and non-rent payments are excluded from this calculation.

Templates recommended in this guide

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