Commercial Rent Recovery (CRAR) London

Regardless of whether you expect payment from your tenant in a few days, it’s important to contact London Evictions as soon as they fall behind on their rent. After we send a Notice of Enforcement, the tenant will be given seven clear days to make the payment. This is known as the Compliance Stage.

The tenant is responsible for the £75 fee established by CRAR for this initial enforcement phase. No further fees will be charged if the tenant pays the full amount within the seven-day period.

Although London Evictions does not charge landlords or managing agents, the Taking Control of Goods Regulations require that the landlord pays the VAT component of the tenant’s fees if the landlord is VAT registered.

If the tenant fails to make payment, we proceed to the second level of enforcement, known as the Enforcement Stage. During this phase, Essex Evictions will either send an enforcement agent to collect the payment or seize the tenant’s belongings until full payment is received.

The following fees, set by CRAR, apply to the tenant during this second phase of enforcement:

• £235 for arrears of £1,500 or less.
• For arrears exceeding £1,500, the fee is £235 plus 7.5% of the total amount owed, minus the initial £1,500. If the landlord is VAT registered, they are responsible for paying the VAT, just as they are for the costs during the Compliance Stage.

If the tenant refuses to pay or enter into a payment plan when the enforcement agent arrives, we move to the third stage of enforcement, called the Sales or Disposal Stage. At this point, additional expenses will be incurred.

The following fees apply during the third phase of enforcement:

• £110 for the stage charge plus 7.5% of the total amount owed, minus the initial £1,500.
• If the landlord is VAT registered, they are responsible for paying the VAT, just like in the first two phases.
• Commission paid to the auctioneer and personal costs.
• Costs of storage.
• Reasonable costs associated with promoting the sale.