Collections Process
Because we have learned and now collect credit cards for almost every rental it is very rare for us to have to collect on overdue invoices. If the situation arises, it’s in our best interest to always be nice to the client. We can be friendly, but firm in collecting our money.
Past Due Date Email
“Hi (Client Name),
Wanted to let you know this invoice is a few days past due. You can either pay by credit card or send a check at your earliest convenience. When do you think you will be able to make the payment?
Thanks, (Your Name)
From there just keep them to their word and setup clear timelines, then try to hold them to that. Setting up a payment plan is also an option you can explore with them.
Once it is clear they are wasting our time, generally 30 days after the invoice has been due, you may send an email similar to the following:
30 Days Past Due Email
Hi (Client Name),
This invoice is 30 days past due now. Wanted to check and see when you expected payment to be made? It is our policy that all invoices over 45 days past due will be sent to collections unless other arrangements are made. Please let us know as soon as possible so this can be avoided.
Thanks, (Your Name)
>45 Days Past Due - Send to Collections
After this long, we can’t spend any more of our time on it. You’ll send them to collections using this page.
http://www.directrecovery.com/send-us-an-account/
It is often a good idea to let them know you are sending the debt to collections and that we cannot spend anymore time on it.
You will also have to send the collection agency a copy of the invoice and the rental agreement, so make sure that is handy.
Once you’ve sent the debt to collections you will just have to await instructions from them. Sometimes the client will try and settle, but often times they will just quickly pay the full amount. If they don’t pay at this point, there isn’t much we can do. Best to cut our losses and move on to the next client.