Protective Controlled Goods Arrangement
Are your tenant/s experiencing regular or seasonal trading difficulties?
Have they accrued rent arrears with you?
Are you aware that your tenant may owe monies to others such as VAT, Business Rates, Business Debts or Suppliers who may take enforcement action too?
Other enforcement companies are not interested in any landlord rent arrears, they are instructed to Take Control of Goods to ensure their client recovers monies owed to them. If this was to happen then any payment arrangement the landlord might want to implement is greatly compromised without you having a Protective Controlled Goods Agreement (PCGA) in place.
If you answered yes to any of the above questions, then you need to safeguard yourself and your landlord. There must be adequate protection in place by way of a Protective Controlled Goods Agreement (PCGA) over all of the goods and chattels found on site.
If you don’t take the action then it could leave you with nothing, even an empty unit or no rent collected if another enforcement agent was to remove your tenant’s goods.
Implementing The Solution
• Instruct CMD as soon as possible so we can issue the compliance letter
• CMD will negotiate with the tenant
• CMD will enter into an agreed Protective Controlled Goods Agreement with the tenant
Once the Protective Controlled Goods Agreement (PCGA) is in place the landlord is protected throughout the whole of the payment plan. Once the landlord has control of the tenant’s goods, both tenant and landlord are protected against any of their creditors who may proceed with enforcement action.
It works in the same manner as a CRAR instruction where by a 7-day Notice of Enforcement is sent to the tenant. The notice has a section informing the tenant the landlord is willing to offer a Protective Controlled Goods Agreement (PCGA), therefore reducing their charges. Our enforcement agent will visit the tenant on an agreed date, take control of the goods as well as set up a payment arrangement. This gives the tenant the option of paying by regular instalments direct to the landlord or we can handle the collection.
If the tenant was to default, then a 48-hour warning notice is sent advising them to bring their arrears up to date. Where no payment is received, the landlord has the protection of CRAR. The rent that is outstanding becomes immediately due for payment, therefore an agent will be sent out to recover the balance. Where the tenant cannot or will not pay, the law allows the enforcement officer to remove goods to cover the outstanding balance as described in the Sale Stage.
The benefits of Protective Controlled Goods Agreement (PCGA) are as follows
• Best suited to tenants who have cash flow problems or a downturn in business/ poor seasonal trading conditions.
• Get there first before other creditors – give you and your tenant the best protection
• 7-day notice goes to the tenant as instructed by CRAR
• With a pre-arranged date and time to visit the tenant. They know what the enforcement agent is attending for, when and why
• Allows you to be in control until payment in full is made giving you and your tenant protection
• A reduced rate of charges enabling your tenant help with their business
• Make sure you are in control prior to agreeing a lengthy payment plan
• Why risk a payment arrangement without Protective Controlled Goods Agreement (PCGA).