Expert Advice at a Glance: How to Collect on Bad Checks and Avoid Receiving Them in the First Place.
Renters Warehouse is unique in that Brenton has created a niche market for the organization with unintentional landlords. 60% of the business is traditional property management for real estate investors and companies, however 40% is "unintentional landlords." For people who are struggling during this tough economy to stay in their homes, Renters Warehouse services helps them keep their homes, rent them and create rental income thus reducing much of the stress that comes along with being a landlord.
How to Collect on Bad Checks and Avoid Receiving Them in the First Place
1. Put a NSF (Non-Sufficient Funds) or returned check policy in the lease. This policy should give a timeline in which it must be re-paid and also a fee associated with this. Common fees vary from $20-$65.
2. Some landlords require only ACH/Auto withdrawal or cashiers check/money order as rent payment. This will avoid dealing with bad checks in general. Many banks offer an ACH service.
3. Know the laws surrounding issuance of a bad check. Some city and state police departments will get involved to help you collect because it is illegal in many areas to write a bad check, sometimes even considered a felony.
4. Have a pre-written response or collection letter written. Renters Warehouse uses one referencing Minnesota statutes and fines and/or punishments for issuance of a bad check.
5. Are you a skilled collector? If not, get to know or hire a vendor or a collection agency. They often can help with this. However, they commonly will charge a percentage of the check to collect. Typically this fee is around 25%.
6. Know the small claims court system. If landlords can't collect on their own, for a nominal fee and a day in court they can present the case to a judge to obtain judgment.
7. If a stop payment is received on a check, know that those are typically only good for 6 months. Hold that check and re-run it 6 months from the
date, odds are it will be good then.
8. After receiving a bad check from a customer, avoid making the same mistake twice. Only accept guaranteed funds hereafter.
9. Be careful of partial repayments without a payment arrangement agreement. Sometimes the laws around bad checks state that partial payments constitute a payment arrangement and can affect your ability to collect the full amount. Everything should be recorded in writing.
10. Be careful of starter checks or counter checks. It's good practice to not accept these sort of checks.
Watch for Brenton's other lists of expert advice. The hot topics covered in the Expert Advice At A Glance series include:
* 10 Tips for Being an Absentee Landlord
* How to Avoid Late Rent Payments
* 10 Reasons Not to Sell
* How to be a Good Landlord
* How to be a Good Renter
* Top Tools that Support You as a Landlord
Visit www.renterswarehouse.com to learn more about the company and Brenton Hayden.
Krista's phone number: 612-877-4500
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|Publication:||PR.com (Press Releases)|
|Date:||Oct 29, 2010|
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