As a property manager, tracking the right debt collection metrics is essential to understanding the effectiveness of your recovery efforts and identifying areas for improvement. By monitoring key performance indicators (KPIs), you can make data-driven decisions that optimize your collections process and ultimately improve your bottom line. In this article, we'll explore the most important debt collection metrics every property manager should track and how Advanced Collection Bureau can help you leverage these insights to achieve better results.
Recovery Rate
Your recovery rate is the percentage of total past-due accounts that you successfully collect. This metric provides a high-level view of your overall debt recovery success and can be calculated by dividing the total amount collected by the total amount of delinquent debt. Tracking your recovery rate over time can help you identify trends and evaluate the impact of changes to your collections process.
Average Days to Recovery
The average number of days it takes to collect on a past-due account can provide valuable insights into the efficiency of your debt recovery efforts. By monitoring this metric, you can identify accounts that may require additional attention or resources to resolve and adjust your strategies accordingly. Aim to minimize your average days to recovery while still maintaining a customer-centric approach.
Cost per Account Collected
Understanding the cost of collecting on each past-due account can help you evaluate the ROI of your debt recovery efforts. To calculate this metric, divide your total collections costs (including staff time, legal fees, and any third-party agency fees) by the number of accounts successfully collected. Strive to minimize your cost per account collected while still achieving a high recovery rate.
Customer Retention Rate
While it may seem counterintuitive, tracking your customer retention rate can provide valuable insights into the effectiveness of your debt collection process. If a high percentage of past-due tenants ultimately choose to renew their leases or refer others to your community, it suggests that your collections approach is not damaging important relationships. On the other hand, a low retention rate may indicate a need to reevaluate your strategies and prioritize a more customer-centric approach.
Promises to Pay Kept
Monitoring the percentage of promises to pay that are actually kept can help you gauge the effectiveness of your communication and negotiation strategies. If a high percentage of past-due tenants are making payment commitments but failing to follow through, it may be necessary to adjust your approach and provide additional support or resources to help them meet their obligations.
At Advanced Collection Bureau, we understand the importance of tracking and leveraging debt collection metrics to drive success. Our team of certified collectors utilizes advanced analytics tools to provide our clients with real-time insights into their debt recovery performance, enabling them to make informed decisions and continuously improve their results. By partnering with us, you can benefit from our expertise in identifying and tracking the KPIs that matter most to your unique situation.
If you're ready to take your debt recovery efforts to the next level through data-driven insights, we'd love to hear from you. Contact us today to learn more about how Advanced Collection Bureau can help you track and optimize the key debt collection metrics that will drive your success.
