This Practice Note sets out the various options available to a landlord in recovering rent arrears and the factors to be considered before any action is taken. It covers the Pre-Action Protocol for Debt Claims, debt recovery (by court proceedings), use of a rent deposit, service of statutory demands prior to bankruptcy or winding up proceedings, pursuing former or sub tenants or guarantors, notices under section 17 of the Landlord and Tenant (Covenants) Act 1995, Commercial Rent Arrears Recovery (CRAR) and the impact of insolvency on recovering rent arrears.
Before taking any action to recover rent arrears, landlords must consider:
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whether to forfeit the lease for non-payment
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whether the tenant is in any form of insolvency and, if so, what implications this has for the methods of recovery available
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whether there are any limitation period issues. No action may be taken to recover rent arrears after the expiry of six years from the date on which the arrears became due
Forfeiture must be considered first as any demand for or acceptance of
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