Tips for Successful
Rent Recovery
AppFolio
Complete Solution Includes:
Web-Based Property Management Software
•Property management and accounting
•Online re...
NARPM® welcomes you to the August
webinar
NARPM®
is the professional, educational, and
ethical leader for the residential ...
Presenter:
Robert M. Locke, RMP, MPM
Real Estate Professional
Objectives
• Examine the Opportunities with Rent Recovery
• Establish Criteria for a Rent Recovery
Department
• Evaluate S...
Pre-Screening Residents Prior to Move-In
• You can report and receive
information about a renter’s
rental payment history
...
Best Kept Secret of Property Management
There’s
_____ ____________
in
property management
the way the
b___________ c______...
Stop Thinking You Are A Property
Manager
Business
Real Estate
Property Manager
Real Estate
Business
New Business to Consider
Collecting outstanding balances left behind when
tenants move out
RENT RECOVERY
A Question to Get Us Started
What do you do with unpaid balances after
move-out?
• Unpaid Rent
• Late Fees
• NSF Checks
• ...
Polling Question:
What do you currently do with outstanding
balances after move out?
A. Nothing ... toss them into a drawe...
Excuses I used to avoid
• “Collections” Carries a Negative Image
• You Can’t Get Blood Out of Rock
• Someone Might Get Mad...
Polling Question:
Why aren't you chasing these balances?
A. I'm fearful of courtrooms/attorney's.
B. I don't know how.
C. ...
Cash Recovered to Date
Your Property Management Model Makes
a Difference
•Managing Low Rents
•Managing Low Credit Scores
•Loose Qualifying Guidel...
Polling Question:
A. They expect me to chase them and collect them.
B. They expect me to turn the files over to them.
C. N...
Get An Agreement with the Owner
•Remember Your Agency Duties
•Not Every Owner Wants to Chase
•Lay Out Your Rent Recovery S...
Start with a Series of Letters
• Start Soft and Friendly (DL)
• Start Using Stronger Language
• Explain Potential Conseque...
Offer Settlement Options
• Offer Payment Plans (code
for Promissory Notes) VIP
• Converting a C__________
to an A_________...
Mark Their Credit
• Join a Credit Reporting Service (DL)
• Get Your Tenant Screening Provider to Help you
• Use Rent Recov...
Polling Question:
A. I give them to a 3rd party to do the eviction.
B. I give them to an attorney to handle.
C. I handle t...
File in Court
• Same as Eviction
• You Don’t Need a Lawyer
• Tenants are Afraid of Court
• Drive to Settlements
• Recorded on their Credit
• Perfect your Judgments
o Attach to Their Income
o Attach to Bank Accounts
o Attach Real Estat...
Fair Debt Collection Act
• It’s Shorter/Smaller than Your Landlord Tenant Act
• Drives Courtesy
• View it as Your Armor
• ...
Who is Going to Teach You?
• RentRecovery.com
• County Clerk’s Office
• Judges
• Your Attorney
• The Tenant’s Attorney
• Y...
Some Real Experiences
• Receiving $11,000 Check With No Name
• Cosigner Pays $27,000 after Second Letter
• Tenant Signs No...
Ethics: Who Gets the Money?
• Give It All to the Owner?
• You Keep it All?
• He Who Pays the Expenses
and Takes the Ricks ...
Excuses I used to avoid
• “Collections” Carries a Negative Image
• You Can’t Get Blood Out of Rock
• Someone Might Get Mad...
Resources
RentRecovery.com
Robert@CrownInvestorInstitute.com
CrownInvestorInstitute.com
Download Code: rent13
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Tips for Successful Rent Recovery | Webinar with Robert Locke (Property Management Industry)

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With co-hosts NARPM, we hosted a fantastic webinar with Real Estate Professional, Robert Locke, on the topic of ‘Tips for Successful Rent Recovery.” The webinar provided insider information and real world examples of how you can run a success rent recovery business. Attendees learned some best practices of how to collect rent from tenants post move out and took away some key strategies that will help you collect balances lost.

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Tips for Successful Rent Recovery | Webinar with Robert Locke (Property Management Industry)

  1. 1. Tips for Successful Rent Recovery
  2. 2. AppFolio Complete Solution Includes: Web-Based Property Management Software •Property management and accounting •Online rent collection (free) •Prospect / guest card tracking •Marketing •Website •Payment processing •Online applications •Resident Screening So You Run A More Successful Business
  3. 3. NARPM® welcomes you to the August webinar NARPM® is the professional, educational, and ethical leader for the residential property management industry. For more information go to www.NARPM.org
  4. 4. Presenter: Robert M. Locke, RMP, MPM Real Estate Professional
  5. 5. Objectives • Examine the Opportunities with Rent Recovery • Establish Criteria for a Rent Recovery Department • Evaluate Steps to Creating a Successful Rent Recovery Business
  6. 6. Pre-Screening Residents Prior to Move-In • You can report and receive information about a renter’s rental payment history through Experian RentBureau • Rental payment history looks at how well an applicant has historically paid their rent in addition to raw credit. • Renters who have a prior history of skipping out on rent are more likely to be repeat offenders.
  7. 7. Best Kept Secret of Property Management There’s _____ ____________ in property management the way the b___________ c_________________ does it.
  8. 8. Stop Thinking You Are A Property Manager Business Real Estate Property Manager Real Estate Business
  9. 9. New Business to Consider Collecting outstanding balances left behind when tenants move out RENT RECOVERY
  10. 10. A Question to Get Us Started What do you do with unpaid balances after move-out? • Unpaid Rent • Late Fees • NSF Checks • Unpaid Utilities • Damages • Missing Keys and Garage Remotes • Trash Out
  11. 11. Polling Question: What do you currently do with outstanding balances after move out? A. Nothing ... toss them into a drawer. B. Turn them over to a traditional collections company. C. Send them letters and chase them for a while. D. Turn them over to the owner.
  12. 12. Excuses I used to avoid • “Collections” Carries a Negative Image • You Can’t Get Blood Out of Rock • Someone Might Get Mad At Me • I Don’t Know the Processes • I’m Afraid of Courts / Lawyers • I don’t have Time for Another Business • There’s No Serious Money Chasing Tenants After Move Out
  13. 13. Polling Question: Why aren't you chasing these balances? A. I'm fearful of courtrooms/attorney's. B. I don't know how. C. There's no money in it. D. I'm to busy.
  14. 14. Cash Recovered to Date
  15. 15. Your Property Management Model Makes a Difference •Managing Low Rents •Managing Low Credit Scores •Loose Qualifying Guidelines •Sloppy Management Processes •Managing Transient Areas •No Charges Built Into Your Lease Make Pursing Them Worthwhile!
  16. 16. Polling Question: A. They expect me to chase them and collect them. B. They expect me to turn the files over to them. C. Nothing ... toss into storage. What does your owner/client expect of you regarding these balances?
  17. 17. Get An Agreement with the Owner •Remember Your Agency Duties •Not Every Owner Wants to Chase •Lay Out Your Rent Recovery Steps •Outline the Risks •Get Owner’s Instructions in Writing •Don’t Exceed Your Authority Remember: Some Agency Duties Extend Beyond Your Separation with the Owner.
  18. 18. Start with a Series of Letters • Start Soft and Friendly (DL) • Start Using Stronger Language • Explain Potential Consequences for Ignoring your Notices o Mark their Credit o File in Court o Judgments o Garnishments • Give Timelines to Solve
  19. 19. Offer Settlement Options • Offer Payment Plans (code for Promissory Notes) VIP • Converting a C__________ to an A____________ • Offer to Settle for a Cash Payment
  20. 20. Mark Their Credit • Join a Credit Reporting Service (DL) • Get Your Tenant Screening Provider to Help you • Use Rent Recovery
  21. 21. Polling Question: A. I give them to a 3rd party to do the eviction. B. I give them to an attorney to handle. C. I handle them myself. D. We don't have any evictions. How do you handle evictions now?
  22. 22. File in Court • Same as Eviction • You Don’t Need a Lawyer • Tenants are Afraid of Court • Drive to Settlements
  23. 23. • Recorded on their Credit • Perfect your Judgments o Attach to Their Income o Attach to Bank Accounts o Attach Real Estate o Attach Car Titles Process Your Judgements
  24. 24. Fair Debt Collection Act • It’s Shorter/Smaller than Your Landlord Tenant Act • Drives Courtesy • View it as Your Armor • Pays a Lot Better than Property Management
  25. 25. Who is Going to Teach You? • RentRecovery.com • County Clerk’s Office • Judges • Your Attorney • The Tenant’s Attorney • You’ll Learn From Your Mistakes • Don’t be Afraid • It’s a Long-Term Residual Business
  26. 26. Some Real Experiences • Receiving $11,000 Check With No Name • Cosigner Pays $27,000 after Second Letter • Tenant Signs Note for $7,500 at $50 a Month and Pays Off After 3 Months • Filed an I-9 and 6 Years Later Received $9,750 • Tenant Hires an Attorney / Prepaid Legal
  27. 27. Ethics: Who Gets the Money? • Give It All to the Owner? • You Keep it All? • He Who Pays the Expenses and Takes the Ricks should get the money • Get Owner’s Permission/Release • Chase Your Money but Not Theirs • Offer Splits on What you Receive • You Get to Apply Collected Funds to Whatever the Tenant Owes
  28. 28. Excuses I used to avoid • “Collections” Carries a Negative Image • You Can’t Get Blood Out of Rock • Someone Might Get Mad At Me • I Don’t Know the Processes • I’m Afraid of Courts / Lawyers • I don’t have Time for Another Business • There’s No Serious Money Chasing Tenants After Move Out
  29. 29. Resources RentRecovery.com Robert@CrownInvestorInstitute.com CrownInvestorInstitute.com Download Code: rent13

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