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How The Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020 affects Landlords

Government implemented amendments to the Taking Control of Goods Regulations 2013 reflect the current circumstances in regard to Coronavirus (Covoid-19).    By amending the regulations it is their aim that tenants are encouraged to liaise with their landlords and “pay what they can”

The new regulations, which are currently now in force until 30th June 2020, state:

  1. If your tenant pays rent monthly, you must wait until they owe 3 months’ worth of rent (ie 90 days) before you can use CRAR
  2. If your tenant owes a full 90 days rent or more (a full quarter), CRAR can be used now.     This means if the March quarter of rent has not been paid, you can instruct us to begin CRAR proceedings without delay.  This would then prevent you from using Forfeiture of Lease for the same period, so please consider your options when making this decision.

Once we are instructed:

  1. If upon receipt of our 7 day Notice of Enforcement your tenant then pays 1 weeks-worth of rent, this would then bring them under the limit for further enforcement.   CRAR could then not be used to pursue them for the balance.   This would mean you would then have to wait for the June quarter.
  1. If your tenant ignores our 7-day Notice of Enforcement, and are currently not trading, we will continue to pursue them by phone, email or text. We would not attend unless the Government and the regulations state we are able to do so.
  2. Should the tenant subsequently default on any agreed payment plan, and there is less than 90 days’ worth of rent owing at the point of the default, the case must go on hold until 30th June 2020.

The above could be subject to change at any point.  We continue to monitor the Government’s announcements closely and will amend our procedures in line with any future changes as and when they happen.  It is our aim to follow the guidelines at all times in order to protect our Clients, their tenants, ourselves and the public in general.   We would like to thank you for your understanding and support during this difficult time.