Debt Collection for Property Management Companies
Late payment is something of an occupational hazard for Property Management companies that deal in tens or even hundreds of residential properties at the same time. Unpaid maintenance fees, Ground rent charges and service charges. That means that there is a very real need for property management companies to protect themselves as much as they can against it and have a mechanism in place when chasing payment reaches that critical point.
The term Property Management Company is a pretty broad one, as there are numerous types of enterprise that fall under the umbrella. You could be a letting agent offering property management services to your landlord customers, a fixed-fee property management company providing services to an entire estate of newly-built houses or someone working with a property management company in a revenue-sharing arrangement. Whichever category you belong to, when your Leaseholders or tenants stop paying, it is not an option to sit back and simply do nothing.
The important thing anyone who finds themselves in this position needs to remember is to stay professional and not let frustration play any part in their business demeanour. Whether you are owed money by a lease holder, sitting tenant or an ex-tenant, the process to recover it can take a little while, so patience is an absolute necessity. If all diplomatic efforts have failed, a swift process needs to begin.
An effective debt collection service for unpaid service charges and ground rent can ensure that profitability is keep to a maximum.
In some quarters, there is still a view that instructing a debt collection company to recover what’s owed is akin to sending in the heavies to intimidate the debtor. In truth, modern, reputable debt collectors are nothing of the sort and use a friendly, professional manner and wouldn’t do anything that would reflect badly on their clients’ businesses. Accredited debt collection agencies will never use intimidating or so-called ‘strong arm’ tactics.
The beauty of these kind of companies is that they most often provide services on a no collection – no commission basis, minimising the cost to yourselves and having adequate provision within the terms and deeds of the property will help massively to minimise the cost of such.
Typical types of Debt that can be accrued for Property Management companies can include
- Unpaid Ground Rent
- Unpaid Maintenance fees
- Unpaid service Management fees
If this additional income is relied upon as an instrumental element of property management income then having a mechanism in place to recover unpaid charges is vital to the profitability and sustainability. Similar to that similar scenario of the provision of Debt Collection for Landlords, it is wise to keep a firm grasp on any arrears.
A Professional Debt Collection Agency will deliver offers a cost-effective, time-efficient way to resolve the issue of unpaid ground rents or maintenance fees. For all aspects of service charge management, fail to put something in place and you could end up counting the cost short and long term.