Commercial Rent Recovery

Distress for Rent

It can be extremely time-consuming dealing with tenants whose rent is overdue. Particularly in today’s current economic climate, the likelihood of receiving rent arrears from a commercial tenant is increasingly difficult. Often considered as just another creditor, landlords often find themselves behind suppliers of goods the tenant needs to keep the businesses afloat.

Once all the normal avenues have been explored and payment is still not forthcoming, landlords in England and Wales, do still have the option of commercial rent recovery, using the Distress for Rent Rules 1988 Act.

How does it work?

Landlords can use this legislation to instruct a bailiff to potentially “distrain” or seize goods without the need for a court order. It seldom comes to this and rent is often collected swiftly – and most importantly – free of charge, to the Landlord.

How overdue must the rent be?

You can effectively use this service as soon as the rent is one day overdue. However it is not recommended to implement this service before trying to collect the rent through normal channels.

Do I qualify?

A landlord will qualify to use this service:

• If the tenancy is commercial and not residential
• If there is an existing or expired agreement
• If the rent is overdue and unpaid by at least one day
• If you haven’t already started legal proceedings

How quickly will you act?

Generally we will attend the premises within 24 hrs of receiving your instruction and always within two working days.

How much does this service cost?

This is a free service for landlords since all the costs are borne by the tenant. The fees for this service are set by law so the tenant will be charged within these guidelines.

What protection do I get?

In most cases the debtor will have goods that are outside of the protection of the law that can be distrained. Once the goods have been levied upon, the goods on the property are protected against other bailiffs attempting to levy on behalf of other creditors, such as Revenue and Customs or local government.