Successful Debt Collection Techniques -
Landlord Lessons

Having a large number of units being leased at any one time means that you will always be attempting to collect on debts.

In this economy, apartment landlords are, by definition, quite often taking risks on people who have already defaulted on their homes. They have already been through difficult and downright scary debt collection issues, so will not be greatly concerned about simple rental debt issues.

We have found that there are three areas on which to focus in any attempt to collect. In my state, Missouri, it is especially important to make a successful debt collection prior to legal action being taken. This is because the state of Missouri has laws heavily in favor of the renting tenant.

1. Always be polite and continue landlord services - the fact that a debt is owed does not excuse the landlord from continuing to provide the services that were agreed to in the rental contract.

2. Persistence in requests - while being polite, the landlord must make continued and persistent requests. Knock (politely) on the door in the morning before work, during work hours, and in the evening at dinner-time. Make requests for payment in clear, reasonable, and polite terms.

3. Threat of Legal action - since these folks have been through the process before, they will be most persuaded by the notification of upcoming legal action. This is often enough to extract at least partial payment.