Rental Property Owners: Use This List to Get the Most Out of Your Collection Agency
When you own a rental property and sign with a collection agency, it can be overwhelming to know what the expectations are.
As an entrepreneur, I’m in a unique position: I own rental properties and a collection agency.
I know what it’s like on both sides, and I want to help other rental property managers and owners be aware of what it takes to successfully work with an agency.
So, let’s break down 5 must-know items to jumpstart your relationship with a debt collection agency so you’re more confident with what to expect.
1. Send all required items — such as name, address, lease, and application — at the time of listing an account.
The more information your collection agency has at the start, the more easily they’ll be able to recover the balance for you. Being proactive is extremely important, so make sure to ask your agency what required items they need, and send them promptly.
This trend of proactivity is going to be important as we go through this list, so keep reading!
2. Respond to questions on accounts in a timely manner.
Time is so important. The sooner you’re able to get back to your agency when they have questions or concerns, the sooner they’ll be able to reach solutions with your current or former tenants.
3. Keep a positive mindset about the accounts receivable management indusry.
A/R is a part of almost any business. The good news is, many agencies are trending toward compassionate collections, which means they’re interested in validating consumers instead of making them feel ashamed or unworthy for having a debt.
This actually works in both the tenant’s and the client’s favor because it allows agencies to listen to the consumer’s needs and come to a solution that works for all parties involved.
4. Updating your collection agency with new information as soon as you have it.
As new information comes in, such as re-renting an apartment, make sure to let your agency know.
5. Provide detailed itemizations of lump-sum charges such as cleaning and repair.
(Example: carpeting cleaning $80.00, replacement of blinds $15.00.)
Agencies need to know the details of what they’re collecting to make sure they follow proper procedures and policies. So, make it easy on them by sending over itemizations that outline the details they need to know to adequately collect the balance.
Now you know the basics.
Now that you’re familiar with the basics of working with a collection agency, you should be more equipped to start the process.
And don’t worry; the agency you choose will walk you through everything step-by-step, so you’ll feel supported along the way.