Commercial Lease

A lease of premises used for business purposes, as distinct from residential premises. Commercial leases are subject to different enforcement rules: CRAR is only available for commercial rent arrears, and peaceable re-entry is only lawful for commercial premises.

In practice

When a commercial tenant falls into rent arrears, the landlord has three main options: CRAR (seizing the tenant's goods), forfeiture (terminating the lease), or court proceedings for a money judgement. The choice depends on whether the landlord wants to preserve the tenancy. A minimum of 7 days' net rent must be outstanding before CRAR can be used.