According to our research, accommodating late rent payments from tenants only reinforces negative behavior and leads to steady unwanted delinquency rates. Surprisingly, an automated filing process actually yields lower delinquency and eviction rates.
So why, then, are so many property managers reluctant to file? Here are the top five reasons we see property managers hesitant or unable to follow a disciplined collection policy.
1. Brother, Can You Spare Some Change?
Most property managers rely on petty cash to pay court and sheriff fees since getting checks from headquarters can take too long for prompt filings. With typical affordable housing delinquency rates as high as 30%, petty cash is woefully inadequate to cover monthly filing costs. It’s imperative that property managers are empowered with the tools they need to reduce delinquencies and prevent eviction; plan ahead by allocating adequate petty cash necessary for filings. Or — better yet — let ClickNotices handle the fees for you.
2. Can I Get Back to You on That?
Customizing, printing, and delivering demand notices or completing court forms is tedious and time consuming, particularly for large apartment communities. Property managers are already over-taxed with urgent day-to-day responsibilities and fires to put out, making these bureaucratic tasks seem insurmountable and thus nonessential.
3. Vexed About Vacancies
A high vacancy rate is among the worst scenarios a property owner can face. Starting the filing process may seem like a one-way road to empty units, but filing doesn’t inevitably lead to evictions. In fact, our research shows that consistent and timely filing leads directly to lower delinquency rates and evictions. Rather than causing vacancy, the filing process acts as a collection agent, ensuring rent is paid before arrears become insurmountable.
4. Can’t Afford to Save Money?
We often run across property managers reluctant to spend money on filings since they might exceed their expense budget or miss a bonus. While it’s obviously critical to control expenses, “saving” money by curbing court fees can be a little like tripping over dollars to pick up nickels. The cost of a lenient and inconsistent collection culture will rapidly swamp any filings costs. In fact, nothing is more expensive in property management than allowing a lax tenant culture and the resulting bad debt it will yield.
5. Broken Records Breaking You?
It’s hard to collect unpaid rent when you don’t even know what is owed. In the affordable housing segment, where myriad subsidies and HUD requirements are complicated enough to short-circuit even the sharpest brain, the notion of calculating a tenant’s balance due is not always cut and dry. In fact, any job-change, layoff, or other re-certification can significantly change a tenant’s monthly rent. It is difficult to enforce a collection policy with an inaccurate ledger. Keep the ledger accurate, and leverage ClickNotices data interfaces with property management systems to ensure filings are accurate and up-to-date.
ClickNotices was designed to help clear these property management hurdles, all while lowering delinquency rates, reducing evictions, and streamlining managerial processes. Contact us today to find out how we can help.