posted 03-06-2002 06:44 PM            

Our area managers have asked up to come up with some ideas for solutions with deliquencies. We already send late letters and follow-up phone calls but I am not happy with these solutions. I need something more innovative and different, not just for myself but for the residents.

Any suggestions would be greatly appreciated!!!!

posted 03-13-2002 09:45 PM            

I didn't immediately reply to your question because I wanted to reflect on it; after 28 years in this business, I have to be careful not to just start talking about "how we've ALWAYS done things . . . "

Alas, I couldn't come up with anything other than the basics:

1. Most rent collection problems are a function of poor resident selection and no/poor resident training.

2. Contests, drawings, discounts for early rent payments and other gimmicks are just that - gimmicks. The lease is a legal contract and obligates each party to do certain things ar certain times. The residents are obligated to pay the rent, just as we are obligated to promptly repair things according to the terms of the lease.

3. Once you have reviewd your resident selection criteria, create a WRITTEN checklist for New Resident Orientation. Include such things as reading the important parts of the lease to the resident (like how much the rent is, when it's due, how to pay, where to pay) - after all, we don't really think the resident reads the lease, do we? Highlight the important parts of the lease with a yellow marker and have the resident initial each highlighted sentence/paragraph.

4. I eliminated late letters and phone calls - I let the residents know that the first letter they get if the rent is not in my office at the close of business on the fifth of the month is a Notice To Quit. I never waive late fees and I never accept rent without a late fee. If they don't pay, I try to get them to sign a stipulation to pay; otherwise, it's off to the attorney and eviction.

My experience is that over 95% of the people I'ev made deals with in the past ended up skipping or being evicted. Plus, the word gets out that you're willing to play "Let's Make A Deal", and then you will really be sorry. Finally, we always need to be aware of the consequences of not giving everyone the same terms and conditions in any given situation.

I know this sounds dull, boring and even mean, and the truth is that we are running a business and once someone signs the contract (lease) they need to honor it. By using careful selection techniques and spending a 1/2 hour or so prior to move-in training your new residents, I'm certain most of your collection problems will disappear.

posted 05-16-2002 02:36 PM            

quote:

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Originally posted by mammoyer:
I recently have been promoted to assistant manager with our company. I am new to the business in general and attended brainstorming in 2001. I figured with all of these great resources I would come to all of you for help?

Our area managers have asked up to come up with some ideas for solutions with deliquencies. We already send late letters and follow-up phone calls but I am not happy with these solutions. I need something more innovative and different, not just for myself but for the residents.

Any suggestions would be greatly appreciated!!!!

Thanks

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posted 04-09-2003 05:45 PM              

So, something you might think about mam is an idea one of my managers gave to me not long ago...she handles delinquencies in the following manner:

3rd-late notice
5th - 3 day notice to vacate
7-9th - Landlord lien + 30 day notice of sale of landlord lien

This system has her with only one full rent out on the 9th of April. Considering this community's profile and its history prior to my company taking over ($25,000 out on 9th), this is an excellent delinquent amount, relatively speaking.

The TAA Redbook outlines items which you may not take (illegal), in a landlord lein, and all the forms you will need to do them. There are also rules you will need to follow for storage and security of the items you lien.

I hope this helped mam.