Presentation on theme: "Debt Collection Debt Collection Feb 2007 (Presentation covers Weekly debt collection, Termination notices, Selling the goods.)"— Presentation transcript:
Debt Collection Debt Collection Feb 2007 (Presentation covers Weekly debt collection, Termination notices, Selling the goods.)
Once behind 100 days (3 months), there is a 80% chance tenants will skip without paying leaving us to to terminate the Agreement and clean up. WHY IS DEBT COLLECTION SO IMPORTANT? Meanwhile, we lose rent while terminating and emptying out the unit. In some 100+ day cases, the defaulting tenant will remove valuable stuff, leave the rubbish and shoot through.
Each Tenant must complete an Agreement, which states the Tenants rights and highlights entry & sale of goods clauses. We need the Tenant’s FULL contact details, employer, Alternative Contacts details, and copy their Drivers Licence. It’s required by law, but it also helps to keep contact if the goods are damaged somehow or the rental is behind. A $50 key deposit is required. We have a debt collection procedure [see (agents page) for Final Notices & Debt collectors advice. The Agreement
0-15 days overdue Automated SMS 15 days overdue Ring each Tenant. HAVE SERVICEMAN FIT OVERLOCK WITH STICKER. 30 days Ring each Tenant. HAVE SERVICEMAN FIT OVERLOCK WITH STICKER. 60 days overdue Serve Notice of Termination and Intention to Sell Goods by certified Mail Have serviceman cut any locks, value contents. 100 days Dispose of goods. Make sure you have a currrent address & refer to debt collector (Qld) Weekly Debt CollectionProcedure Weekly Debt Collection Procedure
Termination Notice The Format of the Termination Notice is on the Web site. Notices can be mail merged from your rental system or using Word. Generally at 60 days, the Termination Notice is served by Certified Mail on the Tenant & the Alternative Contact notified. Take our keys & a bolt cutter and inspect the contents, make a short list and take photos.
Selling the Goods 14 days after the Termination Notice, if not already done, take our keys & a bolt cutter; PHOTOGRAPH & list the contents on the DISPOSAL RECORD. Contact Caretaker to empty shed. Most times, the goods are of little value, i.e. a fraction of the rental owed and common sense applies. Personal papers, photographs are put in a small box, dated, labelled & stored in the caretakers shed for 12 months. Rubbish goes to the TIP; Unsaleable goods go to CHARITY; Goods over $100 should be AUCTIONED. Disposal to a second hand dealer, garage sale.
Main Points File returned mail/photos/list. Get Full Contact Details on Agreement Rigorously follow the weekly debt collection cycle. Fit 30 Days. Accept 30 days. At disposal, photo goods, make list. Auction Goods where possible. Refer to debt collector Send Notice of Termination by certified mail to Tenant & notify Alternative Contact
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