Specialist Debt Collection for Estate AgentsLast modified: July 20, 2021
Specialist Debt Collection for Estate Agents
Estate agents provide one of the most vital roles in the UK for both businesses and individuals.
Their services are in demand both from those looking to move into a new location, but also the property managers themselves.
As well as this, a recent study indicated that there were 16,547 estate agencies in the UK.
This figure does not include those who are self-employed or not registered as a limited company.
With this much demand, the potential for debt to occur is almost a certainty.
When this does happen, the reasons vary.
It may be that a tenant has not paid rent for one of the properties managed by the agents.
Or a landlord may not have paid the agencies fees for letting commercial property.
Regardless of the circumstances, estate agents are at as much risk from non-paying clients as any other business.
As such, agencies need help from a specialist debt collection company to recover any fees that are being withheld.
Options on Debt Collection for Estate Agents
There are several ways in which you can recover unpaid estate agency fees.
Collecting a debt in-house is one such option.
Whilst this can sometimes be successful, it usually serves only to waste precious time and money.
In-house credit control teams can spend days’ worth of time chasing debt. The normal outcome is that you need to escalate the matter.
Your credit control team could spend this time instead on value-based actions that grow the business.
Hiring the services of a debt collection solicitor is also an option.
This can be an effective method of recovering unpaid estate agency fees, but it can come at a very high cost.
Solicitors charge by the hour, with some charging up to £200 for their services hourly.
As court cases can drag on for months, this cost becomes greater over time.
Again, there is no guaranteed outcome, and you may waste time and money in an attempt to recover the debt.
The best option is to instruct a professional debt collection agency that specialises in the estate agent and property sectors.
Whilst there are many agencies to choose from, choosing one which specialises in this sector is an excellent decision.
A specialist debt collection firm will be able to recover owed money more effectively.
They do this with a working knowledge of how estate agencies operate
Debt Collection for Estate Agents – How to Handle Missed Payments
There are many reasons why a client may not have paid you.
Regardless of this, it is important to know what to do when the situation arises.
It is important to remain professional and patient throughout the next few steps.
Attempting to contact the debtor is the most appropriate course of action.
The best ways in which to reach them are either via the telephone, an email or a posted letter.
All communications should be professional. They need to remind the debtor of their obligation to pay you.
We recommend allowing enough time for them to respond, and you should remember that this can sometimes take a little while.
Try to remain patient during this time.
If you have reached out to the debtor and left a reasonable time frame to allow for a response, then it is time to escalate the matter.
Instructing a Professional Debt Collector – Debt Collection for Estate Agents
The best course of action for recovering all unpaid fees is to instruct a specialist debt collection agency.
Frontline Collections have provided the UK’s leading specialist debt collection service for estate agencies since 2005.
Collecting thousands of pounds every week, Frontline Collections are the most effective debt collection for estate agents choices.
Unlike other methods of recovering unpaid fees, instructing a professional debt collection agency provides a low-cost and swift service.
As mentioned, court action or independent collection of debt can take a very long time.
A debt collection agency will enforce the debt and recover it in a significantly faster time.
There is a concern for many that this option is too ‘heavy-handed’
Done badly, this can harm relationships between the creditor and debtor during the collection process.
Whilst some agencies use methods such as this, Frontline Collections is regulated and accredited.
This means that we perform our service in the most professional manner possible. We have also been recognised for our commitment to professionalism and work ethic.
The benefit of this is that the debt recovery process Frontline Collections follows will not jeopardise an existing business relationship.
We take each case we handle on its own merits, and we take every step possible to ensure that the matter is resolved amicably for all parties.
This is especially important in the case of commercial property, as future business opportunities will still be viable.
The UK’s Leading Specialist Debt Collection Agency – Frontline Collections
As well as providing award-winning services, Frontline Collections also specialises in debt collection for estate agents.
We have worked with all forms of estate agencies across the UK since 2005, and as such have an unrivalled understanding of the industry.
Some of the benefits of our service include:
- An industry-leading average 90% recovery rate on undisputed debts
- High collection rates and low commission rates
- Members of The Credit Services Association and UK Debt Collection Bureau
- Gold preferred supplier with the independent schools association
- Strategically located national offices to provide a truly nationwide service