Reporting Delinquent Rent to Collections

The 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.

Collection Agency

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. 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. 

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.

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