Reliable Debt Collection for Landlords and Letting AgentsLast modified: January 29, 2024
Debt Collection for Landlords and Lettings Agents
In the private property rental world, it is an all too common a problem in the modern era. Whether it is willful non-payment or due financial difficulties, many rental tenants end up owing hundreds or even thousands to their landlord even after eviction.
Helping to combat this growing issue are Debt Collection for Landlords specialists. The issue is more real than ever and this article looks at the measures Landlords can take to help prevent unpaid rent arrears and tackle them when they occur.
So what can landlords do?
The first and most important thing a landlord or letting agent can do when facing this issue is to stay professional. If you are to recover your arrears from an ex-tenant, some of whom may be having real money problems, it can be a perplexing and tedious process.
The tendency in this situation is to think that to attempt to recover it will be more trouble than it is worth and just write it off to a bad experience. Dependent on the situation, it is always worth pursuing the money that is legally and rightfully yours as a matter of principle.
It is sometimes not recommended to take Debt Collection for Landlords action whilst a tenant is still in situ. This can inflame the situation and it is sometimes better to wait till the tenant has vacated the property.
There are a number of legal tools that you can utilise where a Tenant becomes a debtor and the priority should be to get them out as soon as possible to limit damage to your bank account.
Before we get into to pursuing the debt, you should ensure that you do everything you can to properly vet prospective tenants through referencing. Do this properly in the first instance and you dramatically reduce the chance you have of running into the problem of rent arrears.
A comprehensive tenant vetting process can help reduce the need for Debt Collection for Landlords in the long run.
The Eviction Process
If you are already past this point and your existing tenants are the problem, then beginning the process of eviction should be your first task.
Tenants who get a long way behind with rent, tend to stop paying completely, so until they are gone from your property, your rental income has effectively stopped. An efficient Tenant Eviction service can assist you with this.
County Court Judgements (CCJs)
As part of the court order to evict, you may obtain an order for the unpaid rent dependent on which path you take. A CCJ will leave a permanent marker on your tenant’s credit file and will make it very difficult for them to obtain credit until it is removed.
Tenants may clear the debt as a result, but it can take a while for this to happen. This is normally done via an agreed repayment plan. There is also the option of enforcing the collection of an unpaid CCJ to speed up repayment where appropriate to do so.
Always try and obtain a forwarding address where possible. This will make things much easier when trying to recover unpaid rent but where this is not possible. If a tenant has absconded with rent arrears owing, often a tenant won’t provide a forwarding address.
An electronic trace can be performed to locate them using the latest electronic foot-printing systems that an debt collection for landlords service provider like Frontline Collections utilises.
As mentioned earlier, the best and most effective way to avoid this whole issue is to properly vet and reference potential clients. If not, then a CCJ is probably your best chance of ever seeing any of the arrears, as it can stay in place for over 6 years and can be enforced accordingly.
If their situation improves, then you may end up getting paid. If you are in this position right now, then why not have a chat with a specialist debt collection agency. They might be able to navigate the tricky these most tricky of waters for the lawful collection of unpaid rent arrears.
This also applies to property management companies who experience unpaid rent arrears.
One thing is for sure though, if a tenant refuses to pay – you’re going to have to play the long game if you want to get any sort of result. Stay calm and try not to let your emotions get the better of you. Common sense needs to prevail in most instances, dependent on the debtor’s circumstances.
If your ex-tenant is reliant on state benefits and has no assets then it is reasonable to assume that the best outcome is a nominal repayment plan. However, if they have a steady job with a decent level of income then you can expect a far quicker resolution.
Every instance of unpaid rent arrears is judged on its own merit however a reputable provider of Debt Collection for Landlords and Lettings Agents service can maximise the chance of recovering any unpaid rent arrears.
Whether you have issues with unpaid rent arrears in London or need a debt collection agency in Manchester to recover non payment of rent, Frontline Collections can help.
If you think your ex Tenant has the means the pay, then contact our New Business helpline for a friendly chat and free assessment of your problem.
We can even assist with the collection of commercial rent arrears via our partners Federal Management.
Frequently asked questions about Debt Collection for Landlords
Can you collect debt from a tenant who is still in the property?
Yes, Frontline Collections can assist with the collection of rent arrears from tenants who are still in occupation. Our New Business helpline will provide a free assessment and our team of Debt Collection Expert will work with you to agree on the best course of action.
Sometimes it maybe appropriate to evict them first so as not to exacerbate the situation. Every situation is different and judged on its own merit.
Do you guarantee to collect unpaid rent from our former tenants?
Unfortunately, no Debt Collection agency can guarantee the full recovery of all monies owed by tenants. We can guarantee that every effort is taken to recover the maximum amount from your former tenant and use a variety of methods to do so.
Unpaid rental arrears is notoriously difficult to recover and we review every case before accepting instruction. Factors such as the employment status of your former tenant and their financial situation come into play.
Do you accept instruction on all types of unpaid rent arrears?
All Debt Collection for Landlord enquiries are subject to our own due diligence. We will not take on cases were there is no reasonable prospects of a full recovery.
Is it worth using a Debt Collection for Landlords service?
Yes absolutely where there is just cause to believe the ex-tenant has the means to pay what they owe. This can be either in full or in part on behalf of Private landlords.
It is probably not worth it where you know the former tenant to be jobless or in sever financial dire straits. Our advisors would establish these facts before agreeing that Frontline Collections are able to assist.