Landlords of commercial premises have a number of options in order to try and recover rent arrears. Deciding whether a particular remedy is available can be problematical as can choosing the most effective remedy. The following courses of action might be available:-
- Forfeiting the Lease by peaceable re-entry.
- Drawing against a rent deposit to cover the arrears.
- Looking to any guarantors or former tenants to pay off the arrears.
- Exercising the new commercial rent arrears recovery process (which has replaced the ancient remedy of distress).
- Bringing Court proceedings against the defaulting tenant.
- Serving a Statutory Demand to recover the unpaid rent.
To maximise your chances of recovering the arrears of rent, it is vital to understand what your options are and the relative pros and cons of each option. Get it wrong and the likelihood is you will probably end up throwing good money after bad. Get it right, and there is every chance you will be able to recover the arrears quickly and cost effectively, whilst sending a message to your tenant that any future rent defaults are likely to be dealt with swiftly and effectively. For advice about any aspect of the recovery of commercial rent arrears, please contact Elizabeth Shaw or Nick Lambert of our Property Litigation Team on 0114 266 6660 or [email protected]. Both of whom have considerable experience in acting for landlords of all types of commercial premises however large or small.
