Property managers handle late rent payments and evictions on a regular basis. With an estimated 20 million people facing monthly rent payments exceeding 30 percent of gross income, a small change in a tenant’s finances can lead to overdue payments or non-payment of rent. It can be difficult to decide whether it’s worth waiting, or if you should evict right away.
Wait or Evict?
It would take a crystal ball to see if tenants behind on rent will recover or not. Given the high and unpredictable cost of an eviction, property managers want to make every effort to work with the tenant. Unfortunately, multiple months without getting paid threatens your bottom line, so sometimes you will have to choose to evict.
The eviction process is complex and time-consuming. Most property managers see it strictly as a “last resort,” and for good reason. Court and sheriff fees are more than $150 in at least a dozen states, with California and Illinois costs exceeding $350. The cost of attorneys, process servers, locksmiths, cleaning services and repair bills add to the final price tag, not to mention the concern that a tenant facing eviction will damage the unit. There are also intangible costs (like negative word-of-mouth and social media activity) that damage your reputation.
On the other hand, eviction fees have a known end point. If you allow delinquency to continue, you could be losing thousands of dollars every month. The state of your unit could also be impacted, especially if your tenant fears you plan to evict them. As difficult as it is to evict someone, sometimes it’s the best choice financially.
What Can Delinquency Management Do for You?
Successfully balancing the advantages of occupancy with the costs of delinquency is challenging, and sometimes you’ll need to enlist outside help. Third-party delinquency management allows property managers to focus on their core responsibilities. An automated approach saves time and money while improving cash flow through reduced receivables.
Customers of Click Notices have experienced a 15 percent reduction in monthly delinquency rate. That’s a large increase in your profit margins, and it saves you quite a bit of time. Automated delinquency management can also help with vacancy. Click Notices handles vacancy notices and provides you with expert help with the legal process of eviction, if necessary.
Automating the Delinquency Process
As an alternative to time-consuming evictions, imagine an automated system for the delivery of courtesy and demand letters. Imagine an expert team ready to streamline the whole delinquency management process. Ultimately, automating the process can save you substantial time and money. When an eviction is required, you can avoid the long and stressful process of going to court yourself, where jammed court dockets may prolong or delay court appearances. Worse yet, legal missteps may incur liability. Click Notices will handle all of this for you.
Contact Us Today
Click Notices is a leading provider of multifamily delinquency management services to property managers nationwide. Our secure software-as-a-service, experienced team, and legal partners can expertly attend to your delinquency management process. Call us today at 443-878-1500 or use the online contact form.