Rent Arrears: Legal Remedies for Commercial Landlords in the UK
Unpaid rent is one of the most pressing concerns for UK commercial landlords. Whether the arrears stem from a tenant’s financial difficulty or deliberate non-payment, landlords must act swiftly—but also legally and strategically.
At Stretton Solicitors, we specialise in helping landlords recover commercial rent arrears using effective legal remedies. In this guide, we outline your key options and how to protect your investment while remaining compliant with current legislation.
What Are Rent Arrears?
Rent arrears occur when a commercial tenant fails to pay rent on the date due under the lease agreement. Arrears can accumulate over time and may also include unpaid service charges, insurance premiums, and other agreed-upon fees.
Early action is critical. The longer arrears persist, the harder they are to recover—and the more risk you face as a landlord.
Key Legal Remedies Available
UK commercial landlords have several legal options to pursue rent recovery, including:
- Commercial Rent Arrears Recovery (CRAR): A statutory procedure allowing landlords to seize tenant goods to cover rent.
- Forfeiture of Lease: Terminating the lease due to breach, usually through peaceable re-entry or court proceedings.
- Court Proceedings: Suing the tenant for debt recovery or obtaining a County Court Judgment (CCJ).
- Statutory Demand: A formal demand that can lead to insolvency proceedings if ignored.
Each option has its pros and cons—professional advice ensures the remedy you choose is both lawful and effective.
Using CRAR – How It Works
The CRAR process enables landlords to recover rent by taking control of a tenant’s goods without going to court. Conditions include:
- A written lease must exist
- Only rent (not service charges or insurance) is recoverable
- At least 7 days of unpaid rent must be outstanding
You must serve a 7-day enforcement notice and instruct certified enforcement agents. CRAR cannot be used after lease termination.
Forfeiture – Ending the Lease Legally
Forfeiture gives landlords the right to terminate a lease if a tenant breaches terms, including non-payment. Methods include:
- Peaceable re-entry: Regaining possession by entering the property physically (with caution)
- Court proceedings: Seeking a possession order through litigation
Landlords must not waive the right to forfeit by accepting partial rent after the breach. Timing and legal precision are essential.
Negotiation and Payment Plans
Not every case requires litigation. In some cases, working with the tenant to create a structured repayment plan can lead to a better long-term outcome—especially if the tenant has a good track record and the arrears arose from temporary hardship.
Formalising any agreement in writing with legal oversight protects your position and prevents future disputes.
According to British Property Federation data, over £1.5 billion in commercial rent arrears remained unresolved in the UK retail and office sectors by the end of 2023.
Take Action Now: Recover Rent Arrears With Confidence
If your tenant has fallen behind on rent, don’t wait. Act early and get professional legal guidance to avoid further losses or unlawful action. At Stretton Solicitors, we support commercial landlords with CRAR enforcement, lease forfeiture, litigation, and negotiated resolutions.
Contact us today to book a consultation and begin your recovery process with a legally sound strategy. Call now or reach out online.