Skip to content

6 Debt Collection Tips For Property Owners

For property owners, rent payments are typically made on time. This is due to a standardized and streamlined payment process with high expectations. However, there are still tenants who don’t pay or fall into debt. However, landlords and property owners have options when it comes to collecting debt. Below is our debt collection advice for tenants and property owners:

1. Check Documentation

After a payment becomes overdue, check the lease agreement. Check if the lease agreement includes specific information, such as the rent amount and days for due payment. If this agreement is signed by both parties, the tenant has a legal obligation to pay on time. Other suggestions for a lease agreement include:

  • Acceptable forms of payment
  • Where rent is paid
  • Late fees if payment isn’t made on time
  • Fees charged if rent check is returned
  • Other consequences if payment isn’t made on time, including collections and eviction

Also seeWhen Is It Time to Hire a Debt Collector?

2. Contact the Tenant

Any contact with the tenant must follow FDCPA rules and regulations. More often than not, all it takes is a friendly phone call from the landlord or property owner to influence the tenant to pay. If the tenant is in an understandably tough situation, the landlord or property owner may think of other ways to accommodate. Both the tenant and the property owner are encouraged to come up with ways to make ends meet and pay rent on time. If, however, the tenant isn’t responding or cooperating, the landlord may do what they believe will work best.

3. Legal Notice

If the tenant seems like they’re not going to pay at all, try a legal notice. A legal notice is essentially a demand letter that informs the resident of their debt, late fees and contract obligations. This “pay or quit” type of legal notice may be the push needed to get the tenant to pay. This legal notice must also follow legal standards.

4. Eviction

If there’s no success, the landlord or property owner may file a legal judgement against the tenant for not paying rent and violating their lease. However, property managers can’t take any of the tenant’s property, lock them out, shut off their utilities or physically take the tenant without getting a court order. For landlords and property owners to get a court-issued order, they must appear in court with all the documents.

Also see6 Debt Collector Myths Debunked

5. Monetary Judgment

For certain situations, property owners or landlords may file a claim in small claims court. This will address all past due rent and necessary evictions. However, the monetary judgement remains a challenge—the tenant may still not pay. If this happens, their credit will still be affected and their wages often garnished. If the court ends up not allowing the claim, the landlord or property manager may file a separate claim for the overdue rent.

6. Property Management Debt Collections

Evictions and legal action may not yield your money back, but a debt collection agency specializing in property management and apartments can. Apartment collection agencies have a much greater chance of finding the tenant and getting payments from them. Their tools and technology, along with professional training, prove a much greater chance of collecting debt. Apartment collection agencies need information to get started, including:

  • Tenant application
  • Lease agreement
  • Itemized list of past due amounts
  • Any attempts to contact and notes
  • A timeline of attempts to contact and when notice was given of late payments or eviction

A property manager or landlord has a much better chance of collecting debt with a collection agency rather than trying themselves. Collecting apartment debt is especially likely if the collection agency has personal experience with property management collections. A contingency-based collection agency is an even bigger bonus—they don’t charge unless they collect.

Southwest Recovery Service

If attempts to collect debt from a tenant don’t work, don’t give up. Southwest Recovery Services is a highly-trained debt collection agency specializing in property management collections. We don’t ask for anything until we collect your debt—and with us, that’s highly possible. For information on property management debt collection, contact our office today.

Recent Comments

    Have A Question?

    Get In Touch

    Southwest Recovery Services is a national collection agency with offices in Texas, Oklahoma, Missouri, Ohio, Florida and Georgia.

    Payment Processing

    • Online Payment Terms and Conditions

      Welcome to the Southwest Recovery Services LLC payment processing site. Please read and agree to the following online payment terms and conditions, website Terms of Service, and Refund Policy prior to agreeing and completing your online payment.

      *** NOTICE ***

      This is an attempt to collect a debt and any information obtained will be used for that purpose. This communication is from a debt collector. If you have any questions or would like to talk to a live Collections Specialist, please call us at (866) 558-3328 during standard business hours: Monday thru Friday 8am-6pm CST. You can also mail your payment directly to Southwest Recovery Services LLC, 16200 Addison Road Suite 260, AddisonTX 75001.

      Credit Card Transaction

      By submitting payment information through this Service you agree to the terms and conditions of this Agreement and any documents incorporated by reference. You further agree that this User Agreement forms a legally binding contract between you and Southwest Recovery Services Inc. and that this Agreement constitutes "a writing signed by You" under any applicable law or regulation. Any rights not expressly granted herein are reserved by Southwest Recovery Services Inc.. By clicking on the "I Agree" button and by clicking on the “click here to pay by credit card” button, you are accepting these terms and the stated fees for using this service.

      IMPORTANT:  Please make sure that you have correctly inputted your account number and creditor’s name in the payment form. This information can be found on your bill. For assistance, please contact us at (866) 558-3328. 

      This site provides a secure payment portal for making online payments. Please ensure that you are paying the correct party and that you have a valid account number received from us.

      If you do not know your account number, please do not make a payment through this web site at this time. Instead, please Contact Us to obtain your account number before returning to make the payment. Without the account number we cannot credit your account with the payment you make on this site, which would result in a significant delay in processing of your payment.

      • This is a web site of a collection agency.
      • This is an attempt to collect a debt.
      • Any information obtained will be used for that purpose.

      Question? Contact Us: info@swrecovery.com

    Make A Payment