Flat Fee Delinquent Rent Collection Service
When your tenant stops paying their rent, the additional costs of hiring an attorney or expensive debt collection agency just adds insult to injury. Flat fee collection agencies to recover rent, damages, and legal fees are available to get landlords their unpaid rent without the exorbitant fees associated with a traditional contingency rent collection agency or the necessity of going to court.
You do not need a court judgment to use a flat fee collection agency’s services. Proof of the delinquency is all you need. Additionally, you can utilize a collection agency to collect the unpaid rent awarded to you if you have already received a judgment against the tenant.
Flat fee rent collection services are generally only available online and might include:
- Processing, printing and mailing an effective collection letter to your prior tenant by the next business day.
Your delinquent tenant will receive a professional letter from a licensed debt collection agency advising them of exactly how much they owe you and instructions on how to satisfy their debt to you. If you order a multiple letter package, follow-ups are mailed at regular intervals.
- Reporting the tenant to the three main credit bureaus (Transunion, Equifax and Experian).
At the same time the rent collection letter is dispatched, your tenant’s delinquency will immediately be reported to the three major credit bureaus, thereby warning other landlords and businesses that this person does not follow through on their financial obligations. Their credit score will most likely be lowered and other creditors will be wary of doing business with someone who has a history of chronically unpaid rent.
Once the tenant has paid their delinquent rent, the collection order can be cancelled. The negative entry will be removed from their credit report or you can have it shown as a paid collection.
If you need to step up your efforts to collect the money owed to you, most flat fee collection services will provide an instant rollover feature enabling you to easily transfer the account to the contingency collection program.
A flat fee collection service should not include a commission or contingency fee. Payment will usually come directly to you from the tenant in the return envelope along with a paystub provided by the collection agency
You keep 100% of the money collected without completing any legal forms or taking the tenant to court.
Flat Fee Debt Collection Options
For small additional fees, your collection service might be enhanced by the following options:
- Certified Mail with Tracking. In order to be certain that your collection letter has been received, Rent Recovery Services offers the option to send the letter Certified Mail with a signature required and a USPS tracking number. Subsequent letters are sent first class mail.
- Collection Service Call Center. A trained collection agent will call your tenant up to four times in order to complete one call. Pursuant to consumer protection laws, no message will be left.
Contingency Collection Service
While the flat fee delinquent rent collection service is very effective, some clients prefer to utilize the contingency collection services for their more recalcitrant tenants.
Payment for this service is dependent upon the successful recovery of a part or all of the renter’s debt to you. The fee is a portion of the delinquent rent collected. If the collection agency is unsuccessful, you will not have to pay anything. Many collection agencies offer a team of licensed investigators, attorneys and collection experts for contingency collections ensure persistent attempts and will not quit on your account until you have received the money due to you.
Most collection agencies do not limit itself to only delinquent renters; any type of debt can normally be collected.
Recover Your Money
We are currently evaluating 3rd party debt collection agency partners.
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