To recover rent arrears without possessing the property, a landlord may bring a claim to the Sheriff Court. A landlord can also do this, where the property has already been repossessed but rent is still owed by the tenant.
An order granted by the Sheriff Court allowing the landlord to recover commercial rent arrears is called a ‘decree’. This decree will be recorded on the tenant’s credit reference file for six years and can affect the tenant’s ability to obtain further credits.
If the tenant cannot repay the debt in full immediately, they can request for time to pay back the debt. In deciding whether to grant this, the Sheriff Court will consider the tenant’s individual circumstances, their income and outgoings; they will then decide how much the tenant is to pay back each month.
Provided that the tenant keeps to the payment order made by the Sheriff Court, the landlord cannot generally take any further action against the tenant. Where the tenant misses a payment on decree, the landlord can take further action against them through the courts.