The current economic predicament in the country has made business challenging for those in the rental property market. Customers are struggling to pay rent as people are facing unemployment and companies are losing revenue.
As a consumer and commercial collection agency with decades of experience, at Summit A*R, we know that landlords face challenging decisions every day. They must either rent out to less than desirable renters or face high vacancy rates. However, with eviction laws being rewritten, landlords don’t want to be stuck with a tenant that can’t pay rent either.
Many landlords, such as retired couples, also have no other income aside from their rental salary. That’s why they need to avoid risk and stay afloat as a landlord during the pandemic by exploring all their options. Here are some tips that may help:
- Be prepared to dip in your own savings should your rental income be disrupted.
- Be ready to reach out to your financial institutions to defer payments if needed.
- Learn about crisis programs designed to help those in the rental property business.
- Learn about nonprofit organizations that help tenants pay rent during a time of crisis.
- Catch up on local laws to learn about your options as a landlord.
- Of course, regardless of whether they get rent paid on time, landlords must continue to pay their operational costs such as repairs, maintenance, and mortgages. Concessions from banks can only go so far.
While commercial rental property owners always had to be careful when renting out their property, they must be especially cautious now. Here are some essential things to consider as a commercial landlord before renting out your property:
- Ask your tenant for references. References from previous landlords are a vital tool when conduction background checks.
- Check their business’s credit report and credit score. Avoid renting your property to companies with red flags on their credit report, such as bankruptcies and large circulating debt.
- Ensure that their business is a good fit for your property. For example, a daycare is unlikely to succeed if your property is located at the docks far residential properties and offices. If their business shuts down, you’ll face multiple headaches.
Remember, if you service any of the following businesses, you may need help from a commercial credit collection agency soon:
- Cinemas and Theaters
- Sporting Arenas
If your commercial tenant isn’t paying their rent on time or exhibiting red flags, then don’t ignore the signs you may need commercial collection services from an experienced debt collection agency like Summit A*R.
Be careful if they pay their rent late, make excuses, offer bad checks, or if their business starts getting negative reviews online.
Remember, debt grows harder to recover with time. If you fail to negotiate with your renter or if you simply don’t want to deal with this stressful situation, then partner with the right debt collection agency to collect your rent. Act now with the best tenant collection services before you’re beaten to the punch by your tenant’s other creditors.
As a residential rental property owner of a house, townhouse, condominium, or apartment, you must tighten your screening process to match with reliable renters. You don’t want a tenant that disrespects regulations, fails to pay rent on time, uses your property for illegal activity, treats your property with disrespect, or fails to report maintenance concerns on time.
- Check your potential tenant’s references. Personal references are fine, but references from landlords can help you make the right decision.
- Ask for an employment letter to verify their income.
- Check their credit score and their credit report to see if they’re fiscally responsible.
- Ask them the right questions during the interview process. Ensure that they understand all the terms of the lease.
If your renter is not paying rent on time, then take advantage of our residential and apartment collections to collect your rent. You don’t have to be the bad guy. Let us negotiate with the tenant on your behalf to recover your much-needed money.
Communicate on Record
Try to communicate with your renter by email or text message as much as possible. If you have an important discussion in person, follow up on email or text message with a clear and concise record of the conversation.
Your documentation could be required during any official proceedings. If you’re making any concessions to your tenants, then you may need your records to get access to government relief programs.
Don’t Waste Time!
Waiting doesn’t do you favors; as a general rule, debt becomes harder to collect the older it is. Aging debt loses value over time, as statistically, you’ll collect less of it the longer you wait.
Within this particular context, you’ll also be competing with the other commercial creditors that your tenant may owe. When a business suddenly goes under, they tend to owe vendors, equipment leasing companies, and more in addition to their landlord.
Waiting to recover your rent gives these creditors a head start, allowing them the first crack at your tenant’s resources. If they beat you to the punch, your commercial tenant may not be in a position where they can pay easily.
What if it’s too late?
Many commercial and residential landlords decide to ignore collection agency services when they think it’s too late to collect rent successfully. Remember, even if you can’t contact your former tenant or if they’ve left town, it’s never too late.
At Summit A*R, we have a powerful skip tracing department that’s managed by a licensed private investigator. We have an unparalleled track record of locating debtors and their assets even if they’ve left the state or taken steps to hide their digital footprint. If you can’t find your former tenant, then give us an opportunity to locate them.
We also work with the three major credit bureaus to hold your former tenant answerable for unpaid dues. When debtors know that their credit report is on the line, they’re more likely to cooperate with us. They understand that a blemish on their credit report can make it harder for them to rent another place down the road.
Remember, you always have options. Please call us at (888) 222-0793 to speak with one of our experienced collection experts.