Debt Collection for Property Management CompaniesLast modified: November 21, 2023
Debt Collection for Property Management Companies
Are you a Property Manager or do you work within the Property Management industry? Do you have customers that have not paid you for the services you have carried out?
Continue reading our article to find out how you can have your debt recovered quickly and efficiently.
The Property Management industry in the UK is rising, and there are over 22,000 companies operating across the country.
Due to a large number of businesses, it has been estimated that there are around 305,000 Property Managers that work on behalf of these organisations.
The industry revenue is expected to grow to around £25.2 billion in the next year or so. This will contribute a large amount to the UK’s economy.
As a result of how large the Property Management industry is, there is a greater likelihood that customers will not pay for the services that you have provided.
The term “Property Management Company” is quite a broad one, as there are numerous types of enterprises that fall under its umbrella.
- Property Manager
- New Building Site Manager
- Lettings Negotiator Manager
- Acquisitions Manager
- Architectural Manager
- Survey Manager
You could be a letting agent that offers PM services to your landlord customers or a fixed-fee PM providing services to an entire estate of newly-built houses.
The different scenarios in which work can be carried out in this particular sector are endless.
Whichever category or job role you belong to, it is not an option to sit back and do nothing if your leaseholders or tenants stop paying you.
You must take action quickly to ensure your cash flow is not affected.
Late payments are something of an “occupational hazard” for Property Management companies that deal with tens, or even hundreds, of residential properties at a time.
This means that there is a very real need for Property Management companies to protect themselves as much as they can against customers that may be late with payments or show no intention of paying.
There are three typical types of Debt that can be accrued for Property Managers, which includes:
- Unpaid Ground Rent
- Unpaid Maintenance Fees
- Unpaid Service Management Fees
It is important to have mechanisms in place when chasing payment reaches its most critical point.
Property Management Companies – What To Do When Payments Are Missed
The most important thing to remember for anyone that finds themselves in this position is to stay professional.
The remaining professional will ensure that frustration plays no part in normal business demeanour.
Whether you are owed money by a leaseholder, current or ex-tenant, the process to recover this can take a little while, so patience is an absolute necessity.
If you have tried to make diplomatic efforts to recover this and they have failed, a swift collection process needs to begin.
The only recommended solution for Property Management companies that are owed money by their customers is by using a Professional Debt Collection Agency like ourselves.
At Frontline Collections, we have collected millions of pounds on behalf of Property Managers in the UK since 2005.
The hassle-free and effective debt collection service for unpaid service charge and ground rent that we provide can ensure that profitability is kept to a maximum.
In some quarters, there is still a view that instructing a Private Debt Collection company to recover what is owed is akin to sending in the “heavies” to intimidate the debtor – this is not the case!
Modern, reputable debt collectors are nothing of the sort and use a friendly and professional manner ensuring to not do anything that could reflect badly on the clients’ business.
At Frontline Collections, we are an accredited professional debt collection agency that will never use intimidating or so-called “strong-arm” tactics.
The beauty of instructing us to recover your unpaid debts is that we will provide our services on a no collection – no commission basis.
This will in turn minimise the cost to yourselves and, having adequate provisions within the terms and deeds of the property, will help massively to minimise the cost of such.
If this additional income is relied upon as an instrumental element of property management income, then having a process in place to recover unpaid charges is vital to profitability and sustainability.
For all aspects of service charge management, if you fail to put something in place to negate late payments, you could end up counting the cost, both in the short and long term.
Debt Collection for Property Management Companies – Why Choose Frontline Collections
We are the UK’s No1 Private Debt Collection Agency, and provide a cost-effective, time-efficient way to resolving the issue of unpaid ground rents or maintenance fees.
Throughout our long history, we have worked with a large number of clients in the Property Management industry, building a trusted and lasting relationship throughout.
There are many benefits to instructing us to undertake your unpaid debts, which include:
- Average 90% Recovery Rate on Undisputed Debts.
- High Collection Rates and Low Commission Rates.
- Members of The Credit Services Association.
- Gold Preferred Supplier with The Independent Schools Association.
- Experience Working Across A Large Portfolio of Sectors.
- National Offices to Provide A Truly Nationwide Service.
For FREE advice and assistance, get in contact with our team of Debt Collection experts today.