| Landlord and property management can be a | | | | the debt with all three credit bureaus so that it |
| tough task to handle, especially if you are renting | | | | goes on their credit report. You can also send the |
| out multiple houses. Many investors choose to | | | | balance to a collections company, as they will stay |
| handle the tenants on their own to keep the | | | | active on trying to collect the debt. The last and |
| monthly costs down instead of hiring a | | | | most effective thing to do is to sue them. This is |
| management company. Most of the time being a | | | | time consuming and small fees will have to be paid |
| landlord can be a good experience, but as times | | | | to file. |
| change and markets get tough we see more and | | | | A lot of landlords simply hire a collection company |
| more tenants leaving the properties and not | | | | since eventually the former tenants will get the |
| paying. Now the landlord is owed, so how does he | | | | money and pay to get it off of their credit report. |
| collect the money owned by the tenant? | | | | When hiring a collection agency, make sure you |
| Getting into landlord and property management is | | | | choose one that is be reputable and persistent. |
| about collecting the money. You need it to pay | | | | Expect to pay the company about 30% of the |
| the mortgage on the house if there is one, or you | | | | balance that it collects. Make sure that the |
| simply want the money to use for other | | | | business is bonded and insured and has at least $1 |
| necessities. Whenever you rent out a place it is | | | | million in liability insurance. Check to see if the |
| always a risk. You will have great tenants who | | | | collection agency has any reports filed against it |
| pay on time every month, and you will have | | | | with the FTC, and ask if the company reports |
| tenants who are always late. Either way, a tenant | | | | the balance to the three credit bureaus. |
| may leave without paying - especially when times | | | | If you own a house and want to rent it out, then |
| are tough. The best thing to do is clearly lay out | | | | be prepared to take on the landlord and property |
| the payment requirements when the lease | | | | management tasks. There are great resources all |
| agreement is signed. If a payment is late, then | | | | over the Web that explain how to rent out a |
| take action. Sometimes being the nice guy and | | | | place, and you get legally binding leases for free. If |
| giving the tenant time can cause more issues. | | | | properly done and you screen the renters, then |
| If you have already sent the letter and tried to | | | | chances are you will have a good paying tenant. If |
| talk to the tenant, you are probably going to have | | | | you start to take on multiple homes and the |
| to go through the eviction process. This will not | | | | economy gets tough, then expect for at least |
| get you any money owed, but it will get the | | | | one tenant to fall behind and not pay. You will |
| tenant out of the property. It is highly likely you | | | | then have to go through the tasks mentioned in |
| will not get any money if they could not pay the | | | | this article to collect the money owed. |
| rent in the first place. One thing you can do is file | | | | |