Commercial rent arrears recovery legislation, which came into force in 2014, means that landlords must give their tenants seven days’ notice before taking action.
A landlord can take the case to court, and request a shorter notice period, if they can present a viable case that the tenants are likely to remove their valuable assets from the property before the commercial rent arrears recovery is exercised.
Potential areas for concern for landlords when it comes to commercial rent arrears recovery
- Commercial rent arrears recovery is not available to landlords who let premises which include residential premises as part of the same lease.
- The rent arrears must amount to at least seven days’ unpaid rent.
- Only rent can be recovered in this way; service charges or insurance rent are not covered by commercial rent arrears recovery, even if they are reserved as rent under the lease.
- The premises must be let under a written lease, so landlords with informal arrangements cannot use commercial rent arrears recovery.
- Landlords can only seize goods owned by the debtor. Goods used for the tenant’s personal use, or their business/profession, are exempt up to a total value of £1,350.
- Only goods up to the value of the rent arrears can be seized.