According to the July 2025 Commercial Rent Collection Index by Remit Consulting, only 72.3% of commercial rents were collected by day 21 of the current quarter: up slightly from Q1 but still well below pre-pandemic averages of 83–85%. The outlook is 'especially bleak' in the retail, leisure, and hospitality sectors, where collection rates remain stuck below 70%, threatening landlord solvency and disrupting asset management strategies.
With traditional legal routes proving expensive and time-consuming, and lease forfeiture carrying significant risks, CRAR offers a direct, regulated path to recovering unpaid rent, yet remains 'woefully underused'.
The firm says lack of awareness, fear of confrontation, and misconceptions about the law have led many landlords to overlook CRAR, with others assuming it’s only effective in extreme cases. However, it can often resolve arrears earlier in the cycle, particularly when when tenants know enforcement is imminent.
“Commercial landlords are businesses too,” added Uba Ngenegbo, Associate Solicitor at RG Law. “Cash flow is vital - especially when lenders are involved. CRAR gives landlords a route to recover what they’re owed without immediately resorting to litigation or eviction. With expert guidance, it’s possible to strike the right balance between protecting your income and preserving professional relationships.”
CRAR applies under strict conditions: it only recovers pure rent (not service charges or insurance); the lease must be written and cover wholly commercial premises; the right to forfeit is waived if CRAR is used; and enforcement agents must be certified and follow a structured process, including a 7-day notice period before goods can be seized.
Goods essential to the tenant’s trade (up to a specified value) cannot be seized, and a separate notice must be served before any sale. Despite these limitations, CRAR remains one of the fastest lawful rent recovery options available.
Ngenegbo added: “The CRAR process gives commercial landlords the legal authority to recover pure rent arrears without needing to go through the courts. By instructing a certified enforcement agent, landlords can seize and sell a tenant’s goods to recoup what’s owed.
“It’s a structured, lawful procedure introduced by the Tribunals, Courts and Enforcement Act 2007, and it replaced the old common-law right of distress with a system that aligns with modern enforcement standards and human rights legislation."
"At RG Law, we find that many landlords are either unaware of CRAR or wrongly believe it’s a hostile tactic. In reality, it can be part of a professional, transparent rent recovery strategy. It encourages settlement, protects landlord cash flow, and avoids the escalating costs of litigation. Used correctly, it doesn’t have to damage landlord-tenant relationships—it can help save them.”
