Why Sharing Values is the Key to a Successful Property Management Collections Partnership!

You may recall a highly publicized case from a few years ago when a large healthcare accounts receivable management firm was fined over two million dollars for using abusive collection tactics that violated both state and federal collection law. The collection agency was also banned from all business operations in the state where the contracted hospitals were located for a minimum of two years, for actions that included demanding patient payments upfront and asking for payment while patients were still in their hospital beds. The repercussions for mistreating patients and violating collection law were a little more than a mere slap on the wrist to say the least – as exhibited by the historic, precedent-setting punishment.
 
And while this case involved healthcare collections, as opposed to the collection tactics of property management debt collectors, it still demonstrates just how important it is to partner with a collection agency that collects within the limits of the law – and the costliness of partnering with one who doesn’t!
 
But how can you be sure you’re aligned with a property management collections agency you can trust, and with one that will always treat your valued tenants in a lawful and ethical manner? The easiest way is to choose a collection agency that shares your same values, principles, and dedication to providing a positive tenant experience. So to help you do so, here are just a few questions to ask a prospective property management collections agency that will give you a better idea for their collection methods and overall approach to rent recovery:
 
• What is your agency’s mission statement? Do you value both quantity and quality collections?
 
• What is your collector hiring process? Do you require prior experience in property management collections?
 
• What training/ongoing education do you offer your collectors? Are collectors required to be educated in debt collection compliance and industry regulations like the FDCPA and TCPA?
 
• Does your agency provide comprehensible and timely collection reporting? Are you transparent about your collection activity and will I always have a clear understanding of my outstanding accounts?
 
How will I know that the goals of you and your collections staff align with my goals for tenant collections? Will my tenants be treated fairly and with respect?
 
How do you ensure a positive tenant experience and encourage tenant retention while still obtaining payment and maximizing recovery?
 
By asking questions like these, you will have a strong idea for how a potential property management collections agency will treat your tenants and whether or not the goals and mission of the collection agency are in accordance with yours. After all, the collectors you hire will effectively be acting as an extension of your property management business and will play a large role in determining both your financial success and your level of tenant retention.


The information provided in this article does not constitute legal advice and is intended for educational purposes only. © 2016 Hunter Warfield, Inc. All Rights Reserved.
 
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