Frequently Asked Questions

CRAR is a legal process available in England and Wales that allows landlords to recover unpaid commercial rent by instructing certificated enforcement agents to take control of a tenant's goods and secure payment, without the need to obtain a court order. It is a fast, effective and legally compliant method of recovering commercial rent arrears.

No, you do not need a court order to use Commercial Rent Arrears Recovery (CRAR) on your tenant.

Taking Control of Goods (TCOG) under CRAR offers several commercial advantages over other recovery routes:

• Protection against other creditors — once goods are taken into control, they are secured against the debt and ring-fenced from competing creditor claims.
• Priority position prior to liquidation — TCOG can secure a position over goods before any creditors' meeting, which can be critical where insolvency looks likely.
• No court order required — CRAR is a self-help remedy; no proceedings are needed to start the process.
• Fees — recovered from the tenant, not the instructing landlord (see VAT and fees FAQ below for full details).
• Speed — Notice of Enforcement issued same day on instructions received before 3pm.

All fees are charged to the tenant.

A minimum of 7 days' net unpaid rent must be outstanding.

CRAR and Forfeiture are mutually exclusive and cannot both be used for the same arrears at the same time. This is a complex area and the right strategy depends on the specific facts — please contact PBS for advice.

From the day after the rent falls due. A Notice of Enforcement is issued on the day of instruction, provided it is received by 3pm.

The 14 days are clear days. The day the notice is served does not count, the day enforcement takes place does not count, and Sundays and bank holidays are excluded from the count entirely.

Notice is deemed served two clear days after first-class posting, or on actual receipt if served in person or electronically (where electronic service has been agreed in advance).

Worked example: If notice is posted on a Monday, it is deemed served two clear days later. The day after deemed service is day 1. Counting forward 14 clear days, excluding any Sundays and bank holidays in between, gives the date from which enforcement may proceed.

The Notice of Enforcement must be given to the debtor by one of the prescribed methods under regulation 8 of the Taking Control of Goods Regulations 2013:

• By post to the debtor's place of business or last known place of business
• By personal delivery
• By fax or other electronic means (only where the debtor has previously notified the enforcement agent that such service is acceptable)
• By leaving it at the debtor's place of business in a manner likely to come to the debtor's attention

PBS routinely serves notices by first-class post and follows up with electronic copies where contact details allow. The notice contains all the information prescribed by regulation 7, including the amount of debt, the date by which the debt must be paid, and the consequences of non-payment.

The notice gives the tenant 14 clear days in which to pay the arrears. If payment is not received our enforcement agents will attend the premises to take control of goods or secure a payment arrangement.

As soon as the notice period expires without payment, PBS will notify the client and advise that an agent is being allocated to visit. We will never visit without the client's knowledge.

We can take control of tenant-owned goods at the premises, including:

• Stock and inventory
• Plant and machinery
• Office equipment
• Vehicles owned by the tenant

All goods must be legally recoverable and not exempt.

We cannot take:

• Goods not owned by the tenant (e.g. leased or third-party items)
• Essential domestic items
• Tools of the trade up to £1,350

We must leave 'tools of the trade' up to £1,350.

These are items necessary for the tenant's personal use in their business. By law, they are protected up to a total value of £1,350.

A CGA is an agreement between the tenant and the enforcement agent (on behalf of the landlord), which allows goods to be taken into control without immediate removal. This enables the tenant to continue trading while making agreed payments. If payments are missed, goods may be removed and sold.

The agent will complete the agreement whilst on site, and both the agent and tenant (or their representative) sign the agreement and keep a copy.

A Controlled Goods Agreement (CGA) is a written agreement under which the tenant retains physical possession of their goods but agrees not to remove, sell or dispose of them until the debt is paid. The benefits are:

• For the tenant: business continues to operate. Stock, equipment and tools stay on site and revenue can continue to be generated to pay the debt.
• For the landlord: enforcement is achieved without the cost and complexity of removing goods. The landlord retains a secured position over the controlled items, with the right to remove and sell if the agreement is breached.
• For both: a CGA usually leads to faster resolution. Many tenants who would resist immediate removal will agree to a payment schedule under a CGA.

PBS uses CGAs wherever practical. They are typically the most commercially sensible outcome for everyone involved and preserve the trading relationship where possible.

We use the most recent outstanding rent due date, ensuring the case meets all legal requirements before enforcement.

Once we are in possession of cleared funds, payment will be remitted directly to your nominated bank account within 3 working days. In many cases this will be within the 14-day notice period; in others, after an enforcement agent visits.

Yes, in many cases it is still highly effective. CRAR is not solely about the value of goods — it is often the enforcement pressure that prompts tenants to engage and resolve arrears. Many cases result in:

• Payment during the notice period
• A Controlled Goods Agreement with structured repayments
• Meaningful engagement from previously unresponsive tenants

Where goods are of lower value, this does not prevent successful recovery. However, if it comes to the potential removal and sale of goods that are unlikely to cover the arrears, we will always discuss the position with you first and agree the most appropriate and commercially sensible course of action.

Forfeiture by peaceful re-entry can only be effected on mixed-use premises if the residential element is vacant at the time of re-entry. If any person is residing at the premises, section 2 of the Protection from Eviction Act 1977 applies and forfeiture must be effected through court proceedings.

No, not by peaceful re-entry. If a person is living at the premises — whether the named tenant, an employee, or a third party — section 2 of the Protection from Eviction Act 1977 applies and forfeiture must be effected through court proceedings.

PBS enforcement agents are trained to identify residential use on attendance and will withdraw if any person is found to be living at the premises. Where this is the case we recommend the landlord applies for a court order for possession.

Yes. The Torts Notice is provided as part of our forfeiture service at no additional cost. We serve a 14-day notice on the former tenant by both email and post, and we arrange access for the tenant to collect their goods within that period.

It is the tenant's responsibility to advise any third-party owners of goods on the premises. Where third parties have a legitimate claim to goods, they should be directed to contact the landlord or PBS as soon as possible.

Once the Torts Notice has expired without the former tenant collecting their goods, the landlord becomes entitled to sell the goods under Schedule 1 to the Torts (Interference with Goods) Act 1977. The proceeds of sale, after deduction of reasonable costs, must be held for the former tenant on trust.

If required, PBS can recommend solicitors and auctioneers to assist with the next stage, but this is the next course of action and is not undertaken by PBS directly.

We can arrange peaceable re-entry (forfeiture) typically within 24–48 hours of instruction.

Commercial debt collection is the recovery of unpaid business-to-business debts. This can include unpaid invoices, service charges, rent arrears, or contractual sums owed by one company to another.

If you instruct us to collect a debt alongside a CRAR instruction, we will pursue the debt for 14 days without charging your tenant a debt fee. If they do not pay within the 14-day period, our standard debt fee of £75 + VAT will be added to the debt for the duration of the collection service.

On receipt of your instruction we will issue a formal debt notice. Our in-house debt collection team pursue the arrears after the notice has been issued.

Yes. We operate in accordance with Late Payment legislation. A small fee (£75 + VAT) is added to the debt and collected from the tenant. There is no charge to the landlord for this service.

We do not routinely carry out background checks on CRAR and Debt Collection instructions, but we offer this as a separate service: Credit Checks and Pre-Sue Reports.

All CRAR enforcement fees are charged to the tenant. Fees are subject to VAT at the standard rate of 20%.

Where the landlord is UK VAT-registered, VAT is charged on fees but is recoverable from HMRC. Where the landlord is not UK VAT-registered, VAT is passed on to the tenant as part of the recoverable costs.

VAT information (including your VAT number) is requested at the point of instruction. For full details of how VAT is treated on enforcement fees, see TCOG Fees Regs section 18.

If the lease is a verbal agreement, CRAR is not available. For CRAR to be used there must be a written lease or Tenancy at Will.

CRAR cannot be used under a licence — see our separate FAQ on CRAR and licences. Where a written lease has expired and the tenant is holding over, CRAR may still be available for up to 6 months after the lease ended — see our FAQ on CRAR after the lease has expired.

No, section 75 of the TCEA 2007 specifically excludes CRAR from leases where any part of the demised premises is let or occupied as a dwelling, even if the dwelling element is a small flat above a shop.

Goods on the premises are presumed to belong to the tenant and can be taken into control. It is the tenant's responsibility to advise any third-party owners that goods may be at risk.

A genuine third-party owner has the right to make a written claim with supporting evidence (invoices, finance agreements, hire agreements). Where a claim is admitted, the goods are released. PBS treats every third-party claim seriously and will not proceed to sale where ownership is genuinely in dispute.

No, you cannot use CRAR under a licence. However, you can use CRAR to collect arrears if you have a Tenancy at Will or a lease in writing. You may also be able to take back possession of your property if the terms of your agreement allow you to do so.

No. A rent deposit is a security held by the landlord — it has nothing to do with rent arrears recovery under CRAR.

If you have sold the premises and are no longer the landlord at the time enforcement is to take place, CRAR is not available to you — the right transfers with the reversion to the new landlord. PBS cannot pursue arrears on your behalf in these circumstances.

This is risky territory and depends entirely on the circumstances. Accepting rent from a third party — for example, a parent company, a connected company, or a successor business — can in some cases create complications affecting the right to enforce.

PBS strongly recommends that landlords either (a) refuse rent from any party other than the named tenant, or (b) accept it only with a written acknowledgement that the payment is made on behalf of the tenant and creates no new tenancy or rights. If you have already accepted rent from a third party and now wish to enforce, please contact PBS for advice.

No. CRAR is a remedy under the law of England and Wales only. PBS does not operate in Scotland.

Scotland has its own equivalent procedure for commercial rent recovery, principally summary diligence and sequestration for rent under the Debtors (Scotland) Act 1987. These require a Scottish solicitor and a sheriff officer rather than an English certificated enforcement agent.

Breathing Space (the Debt Respite Scheme) does not apply to businesses, limited companies, partnerships or LLPs. It applies only to individuals — typically sole traders — and only in narrow circumstances.

Click Client Login at the top of the page (or scroll to the bottom of the page), and you'll be taken to our login page. To register, click Register here and fill in your details — name, company name, address, email and phone number.

Once you're logged in you'll see the different types of instructions listed. Choose the one you want — e.g. CRAR, Debt Collection, Forfeiture, etc. Complete the form and press send.

You will receive an email confirming your instruction immediately, and informing you that a Notice of Enforcement is being sent that day (if instructed by 3pm). We will update your case notes in real time and email you whenever there is an update. You can monitor the progress of your case at any time by logging in and viewing the notes.

No, our agents do not wear a specific uniform, but they are always smartly dressed and wear our logo on their jackets. Their appearance is designed to be professional but discreet so they do not alarm staff when calling on tenants.

Wherever possible, our approach is designed to secure payment while preserving the landlord–tenant relationship, encouraging resolution without unnecessary disruption to the tenant's business.

All agents are fully certificated by the courts and are required to renew their certification before a judge every two years. They are experienced, professional and smartly presented, with a strong focus on compliance, effective negotiation, and protecting our clients' reputation.

Our CPD sessions are completely free of charge. We come to your office or a venue of your choice and deliver group seminars or one-to-one sessions.