Hi. I consider myself as a newbie. My PM recently had a tenant evicted who owes around 2K. Unfortunately my LL policy would not cover as the rent arrears happened largely before before the policy came into effect and I didn't have LL insurance with my previous provider. The PM recommends getting a debt collector to go after the tenant as she knows where the tenant lives now. I just want to know of any previous experiences with debt collectors-is there any point in doing this or will it be a waste of time and cost me more money???
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Tenant evicted!! What now?
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Has your PM taken the tenant to tenancy tribunal? You make it sound like they haven't. Debt collection is usually a waste of time and will cost you more than it's worth. Collection of the debt is actually your PM's responsibility.You can find me at: Energise Web Design
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Originally posted by Glen View PostHHmmmm, where do I start?
Suck it up, learn from your mistakes, and start again....but get HARD on the buggers next time!
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Originally posted by drelly View PostCollection of the debt is actually your PM's responsibility.
Property management is not a debt collector's responsibility.
As I see it, the PM's role ends at getting the TT order. They should be able to refer the LL to a good debt collector.
Paul.
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A debt collector will not/ can not do anything until there is a TT order proving the debt owing. That's your first step.
Once you have the TT order you can try and collect the debt yourself, or engage a debt collector.
Most debt collectors work on taking a (healthy) percentage of the amount collected. So you have nothing to lose if they don't manage to collect anything.
Three possible outcomes either way:
- the ex-tenant will stump up the full amount owed (highly unlikely)
- the ex-tenant will enter in agreement to pay off the debt by a small amount each week (this usually dries up after a few weeks, and then you are back to square one)
- the ex-tenant tells you/the debt collector to go take a running jump.
The most likely outcome is that you write off the debt owing, and gain a small vindicive satisfaction in listing them with Baycorp.
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Debt collection is too costly and I find that most tenants don't seem to give a damn about their credit rating... it's already shot.
Originally posted by SuperDadWhy is debt collection a PM's responsibility?You can find me at: Energise Web Design
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Just continually peck away. Ask for a release of address every 6 months or so, have the court resend those who serve. Eventually ......................
Then, you get to court and they lie ................................
If you get $1 out of them, the time frame for serving starts again (I believe)..............
Remember, the money's gone. Treat it as entertainment.
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Originally posted by drelly View PostDebt collection is too costly and I find that most tenants don't seem to give a damn about their credit rating... it's already shot.
Maybe I'm bitter and twisted from bad PM's but my experience is that the PM creates most of the debt in the first place!
After a last couple of bad tenants, and no luck of getting any bond back, i've decided that I will not lodge the bond money anymore, and i've actually started to do this from the last three tenancies.
If it comes to court (with a fine) then I will play the same card as the poor tenants, which will be them chasing me and payments of $5 per week with frequent times of non-payment , and then they have to follow the whole process again , sound familiar?
Play these studid tenants at their own game.
I'm sick of deadbeat losers!
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Originally posted by AsphaltAfter a last couple of bad tenants, and no luck of getting any bond back, i've decided that I will not lodge the bond money anymore, and I've actually started to do this from the last three tenancies.You can find me at: Energise Web Design
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Originally posted by drelly View PostWhy would you not get it back?
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Originally posted by SuperDad View PostAs I see it, the PM's role ends at getting the TT order.
If you take it step by step you'll eventually get them. In my experience the debt collectors advise you to take the above path, then take their % for that advice. It is the logical thing for them to do I guess.
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Yes I already have the tribunal decision in my favour stating the amount owed. The tenant was given a week to front up with the money which they didn't and hence got evicted. My PM says that they have a "good" debt collector but I am not sure whether to go ahead with the process and it ends up costing me more money.
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Originally posted by Bongi View Post..............but I am not sure whether to go ahead with the process and it ends up costing me more money.
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