Reporting Delinquent Rent To Collections
Your lease agreement serves as the legal contract that entitles you to collect unpaid rent and additional fees if a security deposit does not cover the due amount.
If you have a renter who owes you money one of the options is to send your renter to collections and report his delinquency to the major credit bureaus.
Landlords and property managers may attempt to contact the renter themselves in an attempt to collect the rent. If personal contact is unsuccessful, you can file a small claims case or hire a collection agency to pursue the claim.
Small Claims Court
If you file a small claims case against your tenant, following local court rules and your lease terms, you may also be able to collect money for additional damages, late fees, and legal fees. This tactic requires a heavy investment of time and effort throughout the process.
Check your state collection laws, contact your local small claims court for paperwork, and locate your tenant’s new mailing address so they can be notified of the proceedings. Depending on how much your tenant owes you, small claims court may or may not be worth the investment you have to make.
Working with a company that specializes in delinquent rent collection is the best option for landlords and property managers who do not want to spend their time or resources tracking down a tenant.
Recognizing the need for accessing a trustworthy collections agency that benefits property managers and landlords by producing results, Rentec Direct partnered with Rent Recovery Service.
Rent Recovery Service, the leading collections agency for delinquent rent payments, offers Rentec Direct clients a highly trained and experienced staff of skip tracers, attorneys, private investigators and professional collection agents that team up to provide you an aggressive collection effort.
Flat Fee Collection Features
A flat fee collection option allows a property owner to immediately report a delinquent tenant to the credit bureaus and order a series of collection letters be sent by a licensed collections agency. Flat-fee services are done online and charge a low-cost up-front payment allowing you to keep the majority of the proceeds, while contingency services charge a percentage of the money collected.
Collection agencies like Rent Recovery Service specialize in rent collection, and provide flat fee collections and contingency services.
Collection agencies can also report the debt to the major credit reporting bureaus which will leave a negative mark on the debtor’s credit reports.
We are very impressed with how Rent Recovery Service’s program is setup and how effective it is. Set up and more information can be found here: Rent Recovery Service.