Commercial Property Services
So you have a commercial property. Maybe it is your profession or maybe you have invested your pension in commercial property. Unfortunately, your tenant is now going through some difficult times and has fallen into arrears based on the terms of your lease. As a commercial landlord, you are in a very good position to ensure collection of debt as well as to help to secure the position of your tenant in his endeavours to survive.
First of all, with regards to Commercial Rent Arrears Recovery (CRAR), we can send in our agents, obtain a Writ of Control over goods and tangible assets within the premises and either sell them at auction to obtain funds to settle your debt or hold them as security until your debt is settled in full. There is nothing quite like focussing your tenant’s mind on the issue in hand as taking control of all his assets on the premises and potentially stop his trading through the sale at auction. In reality, the best option for all is usually to leverage a result based on the security you now hold.
You may decide that the tenant is a bad proposal and therefore forfeiture of lease for breach of covenant and the removal of the tenant is the best option. Your lease will surely give you the option to forfeit the lease and regain the property in situations of failure to pay rent and/or service charges.
In commercial lease forfeiture, our usual situation is to attend the property in the early mornings with a locksmith, gain entry, survey the property, take a snapshot of the inventory of assets and act as a 3rd party. Therefore, we can state what the property was like and what assets were within at the time of our entry. This is part of the protection offered against any possible action by the debtor.
We serve notices and display the status on all points of entry and egress.
Under this action, the tenants would have rights to remove their own assets and either you or we can organise door-staff to ensure that the property is safe while the creditor arrives to remove assets.
Some consideration must be given to the fact that Business Rates will fall back to your responsibility once the forfeiture has taken place. So, in some cases, Commercial Rent Arrears Recovery (CRAR) may be a better option to safeguard against further expense.
Commercial Rent Arrears Recovery (CRAR) can also be used to safeguard your tenant’s position against other aggressive debt-collection companies. For example, where the Business Rates or other debts have been left unpaid by your tenant and the creditors have managed to obtain Court Orders and Bailiff Instructions, if you have already secured a Writ of Control over the assets of your debtor, no other Enforcement Officer can do the same until your debt has been settled. So, no other Enforcement Officer can foreclose business for your tenant as full control is in your hands ie. the control of the landlord.