RENT ARREARS RECOVERY
In relation to low value rent arrears it is always difficult for a landlord to know what to do in relation to rent arrears recovery, particularly if the tenant is in a poor financial position and there is a weak letting market. Most landlords will try to work something out with their tenants but if that does not work a landlord may have to consider taking action against his tenant.
If there are rent arrears a commercial landlord may decide that that he wants to forfeit his tenant’s lease and he may decide to do this by changing the locks (an option not available to a residential landlord). He may or may not pursue the rent arrears once he has the premises back. A residential landlord who wants to recover rent arrears does not have a choice; he must take proceedings, and he may do so for possession and the rent arrears, or one or the other depending on the circumstances.
Because of the county court small claims regime and the no-costs rule it may be advisable for landlords to take insolvency proceedings rather than court proceedings. The consequences are much more serious for the tenant and there may be costs advantages in doing so. In relation to costs generally it is always worth considering whether the costs relating to recovery can be claimed though the service charge.
Recovery of rent arrears is a service which we are happy to carry out (subject to limitations) for a fixed fee.