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With UK retail sales for July 2013 reaching their highest level since 2006, tenants will welcome news that landlords’ remedies for recovering rent arrears are to be restricted.
From 6 April 2014 the right of distress to recover arrears of rent will be replaced with Commercial Rent Arrears Recovery (CRAR).
CRAR will curtail a landlord’s ability to enforce against tenants of commercial premises as it limits them to recovering arrears of ‘basic rent’ and not service charge, insurance charges, etc. Tenants will also benefit from a new system of checks and balances, including the introduction of a seven day notice period of intention to send in the bailiffs.
CRAR brings welcome news to tenants of commercial premises as it limits the ability of landlords to take immediate enforcement action without prior notice. Given the introduction of the seven day notice of intention, landlords may look to avoid CRAR and instead rely more heavily on alternative forms of security, such as rent deposits and recourse to guarantors.
A convenience retailer has opted to install cameras (the “Facewatch” system) at a limited number of its English stores to reduce crime and protect its staff.
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The Government appears set to announce plans on ‘living with Covid to restore freedom’. With the success of the retail and hospitality sector key to recovery, what protections will be on offer to tenants to deal with Covid-19 rent arrears?
Break rights have proved a fertile source of litigation over the last few years. More often than not, tenants have found themselves on the wrong end of the decisions. However, a Court of Appeal decision yesterday has bucked that trend.
One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
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