Recovering delinquent tenant debt is a challenge for many property managers. For most, it’s not worth the extra time and money spent tracking debt down, and millions are lost every year as a result. Don’t let past tenants take advantage of your situation: you can take steps to reduce your property's delinquent tenant debt and increase your odds of successful recovery. Check out these slides to learn how you can: Implement consistent policies for your delinquent accounts Streamline and simplify debt collections with technology Move quickly to keep accounts receivables from aging Track, analyze, and tune your collection strategy

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6 Steps to Better
Bad Debt Recovery
Presenters
Tracy Simonton Legg and James Neely
Hunter Warfield, Inc

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• Property management and accounting
• Online rent collection (free)
• Prospect / guest card tracking
• Vacancy Marketing
• Websites
• Online applications & leases
• Resident Screening
• Mobile Inspections
… So You Run A More Successful Business
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Presenters
James Neely
Vice President of Sales & Marketing
Hunter Warfield, Inc.
Tracy Simonton Legg
Vice President Business Development
Hunter Warfield, Inc.

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Agenda
• Who is Hunter Warfield?
• Purpose of the Webinar
• Main Topic: 6 Steps Towards Better Debt Recovery
• Wrap-up
• Open Questions

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Who is Hunter Warfield?
• Over 30 years specializing in rental housing
• Markets include Multifamily, Single Family, Military and Student
Housing
• Actively worked with over 9000 communities in 2016
• $264 million in housing debt placed in 2016
• The majority of our business is placed through integration

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Purpose
• General refresher of many things you have known, but tend to forget
• Mindset focus of maximizing recoveries and minimizing bad debt
• Separating emotion from policy
• Absorb one item you can implement

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6 Steps You Can Take
1. Consistent & Practiced Policies
2. Establishing a Timely Progression
3. Utilize a Third Party Partner
4. Collecting & Maintaining Thorough Documentation
5. Allow Process Evolution
6. Leveraging Technology

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Consistent & Practiced Policies
Step 1

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Consistent & Practiced Policies
• Be Proactive, Not Reactive
• Steps Begin Before Delinquency
• Avoid “Special Cases”
• Create Specific Steps
o What are you doing?
o When are you doing it?
o What is the ultimate goal?
o How are you measuring the outcome?
After Move-outBefore Move-outScreening

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Consistent & Practiced Policies
After Move-Out Step Sample
What: Send Final Account Statement
When: Within 48 Hours of Completion
Goal: Within 7 Days of Move-out
Next Step: Follow-up Call on Day 14
Measurement: Account Noted Once Sent

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Establishing a Timely Progression
Step 2

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Establishing a Timely Progression
FACT: The American Collectors
Association (ACA), finds that
collecting debt becomes 16% less
likely for every 30 days the
account remains unworked.
• Inaction Costs Money
(Wasted or Idle Time)
• Eliminate Repetitive Actions
• Lost Opportunity Cost

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Establishing a Timely Progression
Wasted or Idle Time Example
Day 14
Follow-up
Call
Day 21
Final
Demand
Day 60
Sent to
Collections
Move Out
Idle Time
Day 7
Final
Account
Statement

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Utilize a Third Party Partner
Step 3

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Utilize a Third Party Partner
• A Third Party Partner should…
o Keep you informed of compliance and collection laws
that can impact you.
o Guard your name and brand as an extension
of your company/ownership.
o Know your industry and the nuances involved
in working with your debt.
o Constantly grow and evolve with the economy and industry.
o Say what they do and do what they say.

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Utilize a Third Party Partner
• Other items to consider when choosing a Third Party Partner:
o Are they licensed and bonded to do business in all required states?
o Do they have staff dedicated to understanding and evolving
with the ever changing compliance laws?
o Are they equipped to defend and deter any frivolous lawsuits
from litigious consumers?
o Have they embraced technology and the more recent advances
in your industry?
o Will they provide feedback or training to help reduce your bad debt line?

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Utilize a Third Party Partner
Example of Current Compliance Laws
Fair Debt Collection Practices Act (FDCPA)
A consumer protection amendment, establishing legal protection from abusive
debt collection practices.
Fair Credit Reporting Act (FCRA)
U.S. Federal Government legislation enacted to promote the accuracy, fairness and privacy
of consumer information contained in the files of consumer reporting agencies.
Telephone Consumer Protection Act (TCPA)
Restricts telephone solicitations and the use of automated telephone equipment.
Consumer Financial Protection Bureau (CFPB)
An independent agency of the US government responsible for consumer protection
in the financial sector.

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Collecting & Maintaining Thorough Documentation
Step 4

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Collecting & Maintaining Thorough Documentation
• Stay Informed of the Law
• Read and Understand All
Documents
• Legal vs. Just
• Create Efficient and Reliable
Storage Options
• Backup All Original Documents
• Never Too Much / Sometimes
Not Enough

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Collecting & Maintaining Thorough Documentation
Required
• Signed Contract
or Agreement
• Detailed Final Account
Statement
Suggested
• Applications
• Invoices/Receipts
• Move-in and Move-out
Inspections
• Damage Pictures
• Judgment Copy
Example of Documentation Suggested for Outsourcing Debt

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Allowing Process Evolution
Step 5

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Allowing Process Evolution
• Set future dates to review /
update your process.
• Be accountable to your proactive
process decisions.
• Define a list of your “Red Flags”.
• Communicate with your peers.
• Learn from your mistakes /
journaling.

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Leveraging Technology
Step 6

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Leveraging Technology
• Integrated screening
and recovery.
• Eliminate “Idle Time”.
• Document and lease
management system.
• Making it easier to pay.

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Wrap-up
6 Steps to Better Bad Debt Recovery
1. Consistent & Practiced Policies
2. Establishing a Timely Progression
3. Utilize a Third Party Partner
4. Collecting & Maintaining Thorough Documentation
5. Allow Process Evolution
6. Leveraging Technology

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Questions?