SOP Deliquency Collection
1) Daily contact. By making daily contact with the resident, you make yourself a priority. Phone calls, letters, knocking on door etc. All delinquent accounts should receive some sort of communication from the office each day.
2) Encourage the use of online payments (when available). Compare the possible penalties of non-payment to the charge for paying online. Normally, it is well worth it. Explore the use of an in office credit card machine.
3) Firm deadlines with clear consequences. If you don’t hold the residents to the deadlines, the residents will ignore them.
4) Involve the co-signers/guarantors early and often. Co-signers/guarantors do not want their credit damaged. If you apply pressure on the co-signer, he/she will in turn apply pressure on the resident.
5) Never accept partial payments. By accepting partial payments, you are only encouraging residents to carry a balance from month to month. Additionally, you are entering into an informal agreement with the residents that paying partial rent is acceptable.
6) Never accept cash. It is too difficult to track accurately.
7) Inform residents of small balances or credits, especially before the next month’s charges hit. Unless the resident is aware of the balance/credit, he/she will probably continue to under/overpay.
8) Be firm but polite. All correspondence with residents must be professional and show empathy. All notices should thank them for their residency before addressing amounts owing.
9) Be consistent. Do not give special treatment to certain residents. Residents talk and word of any special treatment will spread. This also leaves you open to Fair Housing Lawsuits.
10) Post notices around the property when rent is due. Make sure to place the notices strategically to minimize waste.
11) Create a facebook page/email list for the property and encourage resident membership through promotions. Monthly reminders about rent/activities can quickly be dispersed.
12) No post-dated checks/payments. This is the same as not paying until the check can be cashed but without us charging late fees. A payment is late unless we can take it to the bank and deposit it same day.