{"id":718,"date":"2020-06-12T01:10:39","date_gmt":"2020-06-12T06:10:39","guid":{"rendered":"https:\/\/www.padleads.com\/blog\/?p=718"},"modified":"2020-11-01T08:57:31","modified_gmt":"2020-11-01T13:57:31","slug":"collection-agencies-should-you-utilize-their-service","status":"publish","type":"post","link":"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/","title":{"rendered":"Collection Agencies: Should you Utilize their Service?"},"content":{"rendered":"\n<p>One of the most imperative job as a landlord is collecting rent. That is where you get the money to pay your business and personal bills. There are utility bills for your properties, maintenance, and if you have people working for you, their salary. This is why if you create property listings at <a href=\"http:\/\/www.padleads.com\" target=\"_blank\" rel=\"noreferrer noopener\">Padleads.com<\/a> &#8212; which will definitely attract potential tenants &#8212; it is important to screen them properly.<\/p>\n\n\n\n<p>If all your tenants pay on time, then you will have a positive and stable flow of income to cover expenses. But what about those tenants who like to dodge rent and avoid you like the plague?<\/p>\n\n\n\n<p>This is where you might consider using the services of a collection agency. Collection agencies are used by lenders and landlords to collect due payments. Not everyone hires them, unless landlords have exhausted all their means to collect unpaid rent. Once you hire them, they will take over collecting payments for you through different tactics, which do not border on harassment. Such as:<\/p>\n\n\n\n<ul><li>Sending notifications through mail<\/li><li>Contacting someone through phone calls<\/li><li>Getting in touch with the tenant&#8217;s friends and family<\/li><li>Personally visiting the debtor<\/li><\/ul>\n\n\n\n<p>If those tenants still would not pay, the collection agency will update their credit report which will affect the negligent tenant&#8217;s credit score so it would be difficult for him to request for loans or apply for new tenancy.<\/p>\n\n\n\n<h1>THE DOWNSIDE OF HIRING COLLECTION AGENCIES<\/h1>\n\n\n\n<p>There are reasons why using collection agencies are not the first option when collecting unpaid rent. They may help you but you have to be aware of the disadvantages of hiring them.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"678\" src=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/calculator-428294_1280-1024x678.jpg\" alt=\"\" class=\"wp-image-696\" srcset=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/calculator-428294_1280-1024x678.jpg 1024w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/calculator-428294_1280-300x199.jpg 300w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/calculator-428294_1280-768x508.jpg 768w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/calculator-428294_1280.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2>1. They are not always successful.<\/h2>\n\n\n\n<p>There is no guarantee that the tenants will pay their rent as soon as the collection agency contacts them. They can also avoid them the way they are avoiding you. Some people are just not threatened easily.<\/p>\n\n\n\n<h2>2. The money collected will not be given fully to you.<\/h2>\n\n\n\n<p>Collection agencies will take a percentage of the payment given to them. This would serve as their fee for collecting the debt for you and the usual range is 25-60 percent &#8212; which is a lot.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/pie-chart-835976_1280-2-1024x682.jpg\" alt=\"\" class=\"wp-image-697\" srcset=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/pie-chart-835976_1280-2-1024x682.jpg 1024w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/pie-chart-835976_1280-2-300x200.jpg 300w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/pie-chart-835976_1280-2-768x512.jpg 768w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/pie-chart-835976_1280-2.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2>3. They may break the law.<\/h2>\n\n\n\n<p>Some collection agencies are known to break the law or push the legal limits when collecting payments and that may affect you too.<\/p>\n\n\n\n<h1>WHAT ELSE CAN YOU DO TO COLLECT UNPAID RENT WITHOUT HIRING A COLLECTION AGENCY?<\/h1>\n\n\n\n<h2>1. Screen your tenants thoroughly.<\/h2>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/www.padleads.com\/blog\/screening-tenants-how-landlords-should-do-it\/\" target=\"_blank\">Screening your tenants<\/a> is the first step when trying to lease a property. Prepare a set of basic but important questions you can ask. You can utilize this for all the applicants so that you won&#8217;t miss anything. You can ask for their employer&#8217;s details to <a href=\"https:\/\/www.padleads.com\/blog\/income-documents-you-can-ask-from-a-potential-renter\/\">verify their income<\/a> or ask for references from people who know them personally. If they have <a rel=\"noreferrer noopener\" href=\"https:\/\/www.padleads.com\/blog\/how-rental-history-reports-lead-to-successful-tenant-screening\/\" target=\"_blank\">leased pre<\/a>vious properties, contact their former landlords which will give you a clear idea of how they are as tenants.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/05\/hjckknwcxxq-1024x683.jpg\" alt=\"woman signing on white printer paper beside woman about to touch the documents\" class=\"wp-image-578\" srcset=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/05\/hjckknwcxxq-1024x683.jpg 1024w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/05\/hjckknwcxxq-300x200.jpg 300w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/05\/hjckknwcxxq-768x512.jpg 768w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/05\/hjckknwcxxq-1536x1024.jpg 1536w, https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/05\/hjckknwcxxq-2048x1365.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2>2.&nbsp; Inform them on your policies regarding payment.<\/h2>\n\n\n\n<p>The moment they show interest in your properties after seeing your listing from <a href=\"http:\/\/www.padleads.com\">Padleads<\/a>, you should discuss your payment policies and make sure that they understand and agree with it before signing any leasing agreement. You are the landlord and they should know that you have <a href=\"https:\/\/www.padleads.com\/blog\/how-to-discourage-late-rental-payments\/\" target=\"_blank\" rel=\"noreferrer noopener\">certain rules about this.<\/a><\/p>\n\n\n\n<p>For example, do not just say you collect rent at the end of the month. Specify the date that you will be collecting, e.g., every 30th of the month. Inform them of the possible consequences if they do not pay on time. This will imply that you will not be lenient with rental payments.<\/p>\n\n\n\n<p>Set up different modes of payment for your tenants. That way, they won&#8217;t have an excuse for delayed postal services or that they could not find the time to meet with you. Online payments can be possible options since they can easily send rental fees with only a couple of clicks on their phones or computers.<\/p>\n\n\n\n<h2>3. Consider eviction<\/h2>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/www.padleads.com\/blog\/effect-of-evictions-on-tenants-and-landlords\/\" target=\"_blank\">Evicting a tenant can be such a burden t<\/a>o landlords. Nobody wants to be the bad guy and taking someone&#8217;s home from them but there are limits to these situations. Serve the notice of eviction to let them know the severity of their debts. If that still does not work, it may be the time to finally evict them, or <a rel=\"noreferrer noopener\" href=\"https:\/\/www.padleads.com\/blog\/no-eviction-other-options-to-get-rid-of-a-bad-tenant\/\" target=\"_blank\">discourage them from renewing their lease.<\/a><\/p>\n\n\n\n<p>If you allow yourself to follow these steps religiously, you might not need to hire collection agencies and <a href=\"https:\/\/www.padleads.com\/blog\/4-ways-to-decrease-property-management-stress\/\" target=\"_blank\" rel=\"noreferrer noopener\">go through a lot of stress<\/a> in collecting rental payments from your tenants.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the most imperative job as a landlord is collecting rent. That is where you get the money to pay your business and personal&hellip;<\/p>\n","protected":false},"author":5,"featured_media":719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13,19],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.4.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Collection Agencies: Should you Utilize their Service? - Padleads<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Collection Agencies: Should you Utilize their Service? - Padleads\" \/>\n<meta property=\"og:description\" content=\"One of the most imperative job as a landlord is collecting rent. That is where you get the money to pay your business and personal&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/\" \/>\n<meta property=\"og:site_name\" content=\"Padleads\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-12T06:10:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-01T13:57:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/realtor-3182376_1280-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"972\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Charles T\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.padleads.com\/blog\/#website\",\"url\":\"https:\/\/www.padleads.com\/blog\/\",\"name\":\"Padleads\",\"description\":\"Guaranteed: more leads for your apartment\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.padleads.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/realtor-3182376_1280-2.jpg\",\"contentUrl\":\"https:\/\/www.padleads.com\/blog\/wp-content\/uploads\/2020\/06\/realtor-3182376_1280-2.jpg\",\"width\":1280,\"height\":972},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/#webpage\",\"url\":\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/\",\"name\":\"Collection Agencies: Should you Utilize their Service? - Padleads\",\"isPartOf\":{\"@id\":\"https:\/\/www.padleads.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/#primaryimage\"},\"datePublished\":\"2020-06-12T06:10:39+00:00\",\"dateModified\":\"2020-11-01T13:57:31+00:00\",\"author\":{\"@id\":\"https:\/\/www.padleads.com\/blog\/#\/schema\/person\/d018f3a3ddcc81e7c85f6213fe12f80b\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.padleads.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Collection Agencies: Should you Utilize their Service?\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.padleads.com\/blog\/#\/schema\/person\/d018f3a3ddcc81e7c85f6213fe12f80b\",\"name\":\"Charles T\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.padleads.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f4589184468e71c918fb3963b73b56a8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f4589184468e71c918fb3963b73b56a8?s=96&d=mm&r=g\",\"caption\":\"Charles T\"},\"url\":\"https:\/\/www.padleads.com\/blog\/author\/charlespadleads-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Collection Agencies: Should you Utilize their Service? - Padleads","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.padleads.com\/blog\/collection-agencies-should-you-utilize-their-service\/","og_locale":"en_US","og_type":"article","og_title":"Collection Agencies: Should you Utilize their Service? - Padleads","og_description":"One of the most imperative job as a landlord is collecting rent. 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