As a property management professional, you know that maintaining a healthy cash flow is essential to the success of your apartment community. However, recovering past due accounts from former tenants can be a significant challenge. At Advanced Collection Bureau, we've spent over 25 years helping high-end apartment communities improve their debt recovery results. In this article, we'll share our top 5 strategies for boosting your recovery rates and protecting your bottom line.
Partner with a specialized debt collection agency
One of the most effective ways to improve your debt recovery is to outsource the process to a collection agency that specializes in the apartment industry. Look for a partner with a proven track record of success, extensive knowledge of lease contracts and move-out statements, and a commitment to maintaining positive relationships with former tenants.
Implement a sales-minded approach to collections
Traditional debt collection tactics can be harsh and impersonal, leading to damaged relationships and lower recovery rates. Instead, consider adopting a sales-minded approach that focuses on rapport-building, empathy, and negotiation. By treating past due tenants with respect and working to understand their unique situations, you can increase the likelihood of a successful recovery.
Leverage credit reporting to motivate payment
Many former tenants prioritize paying off debts that appear on their credit reports, as these can impact their ability to secure future housing, financing, or employment. By regularly reporting past due accounts to the major credit bureaus, you can create a powerful incentive for tenants to settle their debts promptly.
Utilize Skip Tracing
Using skip tracing to locate hard-to-find debtors In some cases, former tenants may seem to disappear, making it difficult to recover what they owe. This is where skip tracing comes in – a process of using various data sources and investigative techniques to locate debtors and their assets. By investing in advanced skip tracing tools or partnering with a collection agency that offers this service, you can significantly increase your chances of successful recovery.
Adopt a contingency-based fee model
Many property management companies hesitate to outsource debt collection due to concerns about upfront costs. However, by working with an agency that operates on a contingency-based fee model, you can minimize your financial risk and ensure that you only pay for results. This approach also incentivizes the collection agency to work hard on your behalf, as their success is tied directly to yours.
The Advanced Collection Bureau Advantage
At Advanced Collection Bureau, we've built our reputation on helping apartment communities like yours implement these strategies to achieve better debt recovery results. Our team of certified collectors combines a sales-minded approach with deep industry expertise, advanced skip tracing techniques, and a commitment to contingency-based pricing. If you're ready to take your debt recovery to the next level, we'd love to discuss how we can help. Contact us today to learn more!
