Protect yourself and your tenant when entering into a payment plan.
It is highly likely that a tenant falling behind with their rent also has other debts, such as rates, VAT, tax or business debts. Any one of these could result in another enforcement agent taking control of the tenant’s goods. Should this happen, your payment plan will be severely compromised. Without a PCA you have no protection over the arrears, which could leave you with nothing – no rent for your client and possibly even an empty unit if another enforcement agent removes goods.
Exactly as we offered the Protective Distraint under the old laws, we now offer this service under the new title ‘Protective Control Agreement’ or ‘PCA’.
The PCA ensures landlords are protected throughout the duration of the payment plan. As it’s name suggests the landlord has control of the tenant’s goods and both landlord and tenant are protected against any other creditors who attempt to enforce.
As with a normal CRAR instruction, we will send a 7 day Notice of Enforcement to the tenant. But the protective notice has an extra section informing the tenant that the landlord is willing to offer a PCA, meaning their charges will be reduced. Our agent will visit the tenant on a pre-arranged date to take control of the goods. The tenant can pay instalments directly to the landlord/managing agent or we will handle collection on their behalf – whichever is preferable.
Should the tenant default we will send them a 48 hour notice warning them to bring their payments up to date. If they fail to do so the landlord has all the protection of CRAR. The full rent becomes payable immediately and we will send an agent to collect the outstanding balance in full. If the tenant cannot or will not pay, the law allows us to remove goods to cover the balance.
• Ensure you are in control before agreeing a long term payment plan
• Stay in control until the arrears are paid in full
• Ideally suited to high risk tenants and those going through difficult periods
• Protect yourself and your tenant from other creditors – get to them first and ensure you are in ‘pole position’
• Reduced charges for your tenant to help them stay in business
• Exactly as with CRAR instructions, the 7 day notice goes to your tenant
• We will visit your tenant on a pre-arranged time and date – they know when and why we are coming and exactly what to expect.
• Never risk a payment plan without a PCA