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Note for Commercial Landlords: What to do when Tenants stop paying rent
January 23, 2020

What do I do if my Commercial Tenants stop paying rent?

Where tenants of commercial property stop paying their rent, there are a number of potential remedies, depending on the circumstances, that landlords may want to consider pursuing including:

  • drawing down from any rent deposit;
  • pursuing any guarantor or former tenant;
  • diverting rent from any sub-tenant;
  • exercising Commercial Rent Arrears Recovery (CRAR);
  • suing to recover rent arrears;
  • forfeiting the lease.

Legal advice should be taken before deciding what course of action is appropriate but commercial landlords should be aware that their options for enforcing these remedies may be restricted where:

(a) in the case of a tenant who is an individual:

  • the tenant has applied to Court for an Interim Order; or
  • there is an Individual Voluntary Arrangement (IVA) in place; or
  • a bankruptcy order has been made against the tenant;

(b) in the case of a corporate tenant:

Contact Our Commercial Property Solicitors

If these are issues which are affecting you, please contact Muscatt Black Graf by telephone on 0207 586 1141 or by email to contact@muscattblackgraf.com, or fill in our online contact form.

Please note this blog was prepared on 23 January 2020. It is not intended to be advice and should not be relied upon as such.

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