Friday, 21 Nov 2014

Commercial Rent Arrears Recovery

Commercial Rent Arrears Recovery

Landlords wishing to recover rent due under a Lease from a sub-tenant of their tenant by serving notice on that sub-tenant should note that there is now a mandatory period of 14 days from service of the notice on the sub-tenant before the notice becomes effective.  
 
If a Landlord serves a notice on the sub-tenant less than 14 days before the rent payment date, the notice would be invalid and the Landlord would be time-barred from requiring the sub-tenant to pay that rent.  This is particularly important where rent is paid quarterly.
 
Where a Landlord has a tenant who is in default but a sub-tenant who is solvent, it may be sensible to consider claiming against the sub-tenant but if so, it is vital to act promptly.  This new 14 day period is as a result of the new Commercial Rent Arrears Recovery procedure (CRAR) which came into force earlier this year.
 
For more information contact David Tear on 01535 613 668
 
 
 
 
 
 
David Tear
Partner,
Head of Dispute Resolution,
 
Tel: 01535 613 668
Email: david.tear@awbclaw.co.uk  

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