Property owners who rent their properties suffer so much financial loss each year. It is not uncommon for property owners to have to write off bad debt at the end of the year. How much bad debt you write off because of tenant’s payment delinquency will hinge on whether you have a good property management company or not.
For so long, about 12 percent of property owners have simply reconciled themselves to the reality that a certain fraction of all tenant move-outs will result in bad debt. They also have had to embrace the truth that collection agencies can only recuperate 18 percent of all the referred bad debt and in addition, it can take more than five years to recover.
Mississippi Real Estate Solutions is your answer to the right property management answers to collecting bad debt. First, we know the substantial benefit of collecting the initial security deposit. Therefore, we make sure that this is included in the move-in porcess. The security deposit, in most cases, will put off renters from failure to pay their rent or leaving the property in a bad state when they move out. The renter is aware that if these conditions are not met, then the security deposit becomes the property of the owner.
However, no matter how careful you are about collecting a security deposit and choosing good tenants, things can go badly, which result in carrying bad debt. We give our clients the best professional service that is possible. We make sure that bad debt is reported to the appropriate agencies.
Collecting bad debt can be a time consuming process. If you do it on your own, it can cost you both time and money. We know various legitimate shortcuts to collect your account receivables. We also know the Fair Debt Collection Practices to protect you from any liability or law suit.
We also have some strategic methods in place to spot problems before they occur. In so doing, we can take certain deliberate actions before the bad debt occurs. This may mean making a decision to keep the tenant in the property or not. If all else fails, we resort to Plan B, which is collecting the bad debt that is outstanding and owed to you.
Don’t spend wasted time chasing after bad tenants. Let us do that job for you. Call one of our representatives today to see how we can assist you.