Presentation is loading. Please wait.

Presentation is loading. Please wait.

© 2010, 2011 Crown Investor Institute, LLC 1 Please turn your phone back ON when class is over.

Similar presentations


Presentation on theme: "© 2010, 2011 Crown Investor Institute, LLC 1 Please turn your phone back ON when class is over."— Presentation transcript:

1 © 2010, 2011 Crown Investor Institute, LLC 1 Please turn your phone back ON when class is over.

2 © 2010, 2011 Crown Investor Institute, LLC 2 Unlocking the Hidden Profits in Property Management Instructor Robert M. Locke, RMP, MPM With a Rent Recovery® Business

3 © 2010, 2011 Crown Investor Institute, LLC 3 Course Objectives Examine the Opportunities with a Post Move-Out Recovery Business Establish Success Criteria for this Process Evaluate Steps to Creating a Successful Rent Recovery® Business

4 © 2010, 2011 Crown Investor Institute, LLC Best Kept Secret of Property Management There’s _____ ____________ in property management the way m___________ m_________________ do it.

5 © 2010, 2011 Crown Investor Institute, LLC 5 Stop Thinking You’re a PM Business Real Estate Property Manager

6 © 2010, 2011 Crown Investor Institute, LLC 6 Stop Thinking You’re a PM

7 © 2010, 2011 Crown Investor Institute, LLC New Business to Consider Collecting outstanding balances left behind when tenants move out of your property.

8 © 2010, 2011 Crown Investor Institute, LLC 8 A Question to Get Us Started What does your company do with unpaid balances after move-out? Ask Your Neighbor Unpaid Rent Late Fees NSF Checks Unpaid Utilities Damages Missing Keys and Garage Remotes Trash Out

9 © 2010, 2011 Crown Investor Institute, LLC 9 Should You Chase Them? Do They Really Owe the Money? Should They Be Allowed to Just Walk Away? Is it Your Job to Enforce? Does Your Owner / Client Deserve Some Options From You?

10 © 2010, 2011 Crown Investor Institute, LLC 10 Excuses I Used To Avoid This “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 Stop Relying on Your Experience

11 © 2010, 2011 Crown Investor Institute, LLC 11 Cash Recovered to Date

12 © 2010, 2011 Crown Investor Institute, LLC 12 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 Pursuing Them Worthwhile

13 © 2010, 2011 Crown Investor Institute, LLC 13 Get 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 (DL) Don’t Exceed Your Authority Remember: Some Agency Duties Extend Beyond Your Separation with the Owner.

14 © 2010, 2011 Crown Investor Institute, LLC 14 Start With a Series of Letters Start Soft and Friendly (DL) Start Using Stronger Language Explain Potential Consequences for Ignoring Your Notices –Mark their Credit –File in Court –Judgments –Garnishments Give Timelines to Solve

15 © 2010, 2011 Crown Investor Institute, LLC 15 Offer Settlement Options Offer Payment Plans (code for Promissory Notes) Converting a C________ to an A_____________ Offer to Settle for a Cash Payment

16 © 2010, 2011 Crown Investor Institute, LLC 16 Mark Their Credit Join a Credit Reporting Service Get Your Tenant Screening Provider to Help You Use a Traditional Debt Collection Company

17 © 2010, 2011 Crown Investor Institute, LLC 17 File in Court Same as Eviction Court You Don’t Need a Lawyer Tenants are Afraid of Court Too Drive to Settlements

18 © 2010, 2011 Crown Investor Institute, LLC 18 Process Your Judgments Recorded on Their Credit Perfect Your Judgments –Attach to Their Income –Attach Bank Accounts –Attach Real Estate –Attach Car Titles

19 © 2010, 2011 Crown Investor Institute, LLC 19 Fair Debt Collections Act It’s Shorter/Smaller than Your Landlord Tenant Act Drives Courtesy View it as Your Armor and Not Your Enemy Pays a Lot Better Than Property Management

20 © 2010, 2011 Crown Investor Institute, LLC 20 Who is Going to Teach You? 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

21 © 2010, 2011 Crown Investor Institute, LLC 21 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 6 Months Filed an I-9 and 6 Years Later Received $9,750 from a Closing Attorney Tenant Hires an Attorney / Prepaid Legal

22 © 2010, 2011 Crown Investor Institute, LLC 22 Ethics: Who Gets The Money? Give It All to the Owner? You Keep It All? He Who Pays the Expenses and Takes the Risks Should Get the Money Get Owner’s Permission / Release

23 © 2010, 2011 Crown Investor Institute, LLC 23 Ethics: Who Gets The Money? Chase Your Money but Not Theirs Offer Splits on What You Receive You Get to Apply Collected Funds to Whatever the Tenant Owes

24 © 2010, 2011 Crown Investor Institute, LLC 24 What is Holding You Back? “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

25 © 2010, 2011 Crown Investor Institute, LLC 25 CrownInvestorInstitute.com Cell CrownInvestorInstitute.com Free class downloads Rent Recovery Conference Username and Password: con140


Download ppt "© 2010, 2011 Crown Investor Institute, LLC 1 Please turn your phone back ON when class is over."

Similar presentations


Ads by Google