When renting property. landlords often have to contend with non-paying renters. These renters often move voluntarily, or are evicted, leaving their landlord wondering how to seek compensation for unpaid rent. If you are a landlord that is searching for a way to collect past due rent a collection agency might be your answer.
Attempt to contact your former tenant to make payment arrangements. Sending certified letters to the tenant’s new address (if one can be found) will help you to prove that every effort was made on your part to resolve the situation. File these letters along with any documents related to the rental property in the event that they are needed by the collection agency.
Find a debt collection agency that specializes in rental properties. There are a variety of collection agencies that deal solely with rental property and landlord/tenant disputes. When searching for a collection agency attempt to find a company that is local. Many landlords are more comfortable dealing with collection agencies that are easily accessible.
Choose the debt collection agency that has the most reasonable contingency/flat rate fees available. Also, be sure to find out what methods the collection agency will use to collect the past due rent and how long it usually takes them to collect the rent. Some collection agencies will seek court judgments while others will offer generous settlements.
Provide the debt collection agency with copies of all documents related to the lease. Debt collection agencies often have trouble collecting bad debts because of a lack of proof that the debt exists and has not already been paid. Giving the collection agency a copy of the signed lease and any other contracts that the tenant may have signed will help prove the validity of the debt.
It may also be necessary to provide proof of any letters sent demanding payment and all documents relating to the eviction of the tenants. If the agency requests this information it is important to provide it as soon as possible. Most collection agencies will request that documents first be faxed and then mailed.
Keep track of the progress of the debt collection agency. Some debt collection agencies will send weekly or monthly reports regarding the progress of their collection efforts. If you are not receive status updates call your collection agency at least once a month to find out how things are progressing.
This is important to avoid getting in a situation where the statute for collecting on a debt has run out and will sometimes encourage your debt collection agency to try more aggressive methods.
Article Source: Tameka McSpadden – www.ehow.com
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