Monday, 15 July 2013

Quarter Day has Passed

With the recent passing of quarter day, any rent that wasn't paid on time would have fallen into arrears the following day - under Common Law, the landlord is entitled to take action by seizing goods to recover any rent arrears, however, some landlords will make an arrangement for the payment of the rent, thus allowing the tenant to remain in the premises and prevent the seizure of the assets.


Should the tenant then default on the agreed terms, the landlord is entitled to take enforcement to obtain payment, even sell the assets - this is called protective distraint.

Note – distraint for rent does not permit the enforcement officer to attend any other premises where goods belonging to the tenant may be found, the distraint only applies to the premises covered by the rent agreement.

All of this is done by instructing a Certificated Bailiff to collect the payment, or seize the goods on his behalf.

It is normally the case that when a Bailiff seizes the goods he does so under a walking possession order, allowing the tenant to continue to trade on the proviso that anything sold must be replaced, like for like, within twenty-four hours.  If the tenant falls to replace the items and fails to pay his outstanding rent, the landlord can demand two & half times the rent value from the tenant.

Another option would be to instigate a peaceful possession procedure; the landlord, agent or solicitor only need instruct a Certificated Bailiff to act on their behalf.  This is an effective method if the officer cannot levy distress due to them not being able to gain entry, there are insufficient goods to seize or all goods belong to third parties.

If you are ever stuck, need a little advice or simply need some clarity on any matter relating to rent recovery please do give us a call, we’d be happy to help where we can.

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