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

Tips for Successful
Rent Recovery

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

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

Presenter:
Robert M. Locke, RMP, MPM
Real Estate Professional

Objectives
• Examine the Opportunities with Rent Recovery
• Establish Criteria for a Rent Recovery
Department
• Evaluate Steps to Creating a Successful Rent
Recovery Business

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.

Best Kept Secret of Property Management
There’s
_____ ____________
in
property management
the way the
b___________ c_________________
does it.

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
• Unpaid Utilities
• Damages
• Missing Keys and Garage Remotes
• Trash Out

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.

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

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.

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!

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?

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.

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

Offer Settlement Options
• Offer Payment Plans (code
for Promissory Notes) VIP
• Converting a C__________
to an A____________
• Offer to Settle for a Cash
Payment

Mark Their Credit
• Join a Credit Reporting Service (DL)
• Get Your Tenant Screening Provider to Help you
• Use Rent Recovery

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?

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 Estate
o Attach Car Titles
Process Your Judgements

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

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

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

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

Resources
RentRecovery.com
Robert@CrownInvestorInstitute.com
CrownInvestorInstitute.com
Download Code: rent13

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

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