When should landlords call on Debt Collectors for unpaid rent?
26th October 2020
As a landlord, maintaining a positive landlord-tenant relationship is of great benefit to both you and your tenants. It shows goodwill on both sides to do right by the other.
This is especially important during the hardships brought on by the COVID pandemic. For example, by making a short-term arrangement to defer rent payments, you are showing that you trust your tenant to pay you back as soon as they are able to.
However, there is only so much leniency you can give to tenants in such situations. At some point, that rent will need collecting, but recovering arrears at a time like this presents new challenges. If the landlord-tenant relationship has broken down, the support of a Debt Collection Agency can be invaluable to landlords.
Recovering rental arrears
Most landlords don’t want to risk harming their relationship with late-paying tenants by calling on a Debt Collection Agency to recover unpaid rent. However, using an ethical, professional debt recovery service can set expectations and stabilise this relationship, whilst providing certainty in the future that rent payments will be paid as agreed. Our landlord clients often tell us they wish they’d used our services sooner and saved themselves a lot of stress.
Here are some circumstances in which it would be wise for a landlord to instruct a Debt Collection Agency:
Consistently late payments
The odd late payment could be forgiven, but considering the regular nature of rent payments, it becomes less forgivable after a few instances. Tenants are more likely to understand the importance of timely payments after a late payment has been passed to a Debt Collection Agency.
It doesn’t take many missed rent payments for arrears to stack up significantly. It’s an unfair position for a landlord to be put in. Often the fastest way to clear the debt and remove this burden is by using a Debt Collection Agency to recover what’s owed.
Tenant left while in arrears
For a landlord, it’s a nightmare scenario: The tenant has disappeared while in arrears, often without a trace. Thankfully, Direct Collection Bailiffs Ltd offer advanced debtor tracing services to track down anyone dodging payments and demanding any money due.
Use a collection process that works
If you are struggling to collect rent owed to you for whatever reason, Direct Collection Bailiffs Ltd can help. Call 0203 298 0201 or fill in our online form to get started on recovering unpaid rent today.