Landlord steps to take if tenant becomes insolvent—checklist


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property Disputes expert
Checklists

Landlord steps to take if tenant becomes insolvent—checklist


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property Disputes expert

Checklists
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This Checklist covers issues that a landlord should consider in the event of tenant insolvency, including the remedies available to the landlord such as Commercial Rent Arrears Recovery (CRAR), forfeiture, drawing down on a rent deposit, and pursuing former tenants, guarantors and sub-tenants. It also covers practical points for a landlord to consider in relation to securing and marketing the property and contacting the insolvency practitioner.

What type of insolvency scenario applies to the tenant?

Dependent on the type of insolvency arrangement that applies, there are different remedies available to the landlord and different restrictions will apply.

For a table summarising the restrictions, see Practice Note: Quick guide to property insolvency—Insolvency of a tenant.

Has contact been made with the insolvency practitioner?

It is important to contact the relevant insolvency practitioner to assess the position the tenant is in and what, if any, chance there is of any debts being repaid, future rents being secured or the tenant recovering from the insolvency situation, although care should be taken not to waive any right to forfeit

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