CRAR Enforcement Secures £24,309 Payment Towards Commercial Rent Arrears in Leeds

The Situation

A commercial landlord required assistance in recovering outstanding rent from an industrial premises in the Leeds area. Strikes Property Services Group was instructed to attend the property under a Commercial Rent Arrears Recovery (CRAR) instruction and seek payment of the outstanding balance. The tenant had constantly failed payment plans and made false promises to pay over the course of 5 months.

Our enforcement agent attended the premises at 10:45am and found an industrial unit with three members of staff present in the office. The business owner was not at the premises, but a member of staff contacted him by telephone, allowing our enforcement agent to explain the reason for the attendance and the requirement to address the outstanding rent.

The initial response was that no funds were immediately available, although the business had recently made a payment to the landlord of minimal amount. Our enforcement agent explained that the balance needed to be addressed and gave the business time to raise funds.

After searching for Commercial Rent Arrears Recovery (CRAR) services in Leeds, the client contacted Strikes Property Services Group.

Our Approach

Rather than immediately progressing to the removal of goods, our enforcement agent worked with those at the premises to establish whether a payment could be raised towards the outstanding balance.

After approximately 30 minutes, an initial offer of £10,000 was made, with payment proposed for later that afternoon. Our enforcement agent explained that this would not be sufficient and that a considerably larger amount needed to be raised.

While discussions continued, our enforcement agent began compiling an inventory of goods that could potentially be taken into a Controlled Goods Agreement. This included machinery throughout the premises. A copy of the company’s recent stock take was also provided and considered as part of the process.

A further representative of the business attended and discussions continued around how much could be raised. An offer of £14,000 was subsequently made, followed by a further offer of £20,000.

Our enforcement agent remained in communication with the Strikes office throughout the attendance. Following further negotiations, the minimum acceptable payment was established at £30,000. The business continued trying to raise funds and eventually offered £21,000, which was again explained to be insufficient.

Further negotiations continued, with the business eventually stating that it could raise £25,000, although additional time was required. This was accepted as the amount to be pursued, that the landlord was delighted with.

Later that afternoon, the business confirmed that it had managed to raise £24,309 and had exhausted every available avenue to raise additional funds. This amount was subsequently accepted.

Outcome

Following several hours of negotiation, the business successfully raised £24,309 towards the outstanding commercial rent arrears.

The relevant paperwork was completed and our enforcement agent left the premises at approximately 4:45pm. The attendance demonstrated the value of a structured and persistent approach to CRAR, giving the business an opportunity to raise a substantial payment while protecting the landlord’s position.

The case was managed by Roy Bennett (Enforcement Agent), supported by Chris Bane (Managing Director) and Janet Morris (Legal Administrator), ensuring the attendance was professionally managed from initial contact through to the agreed payment.