FCO article

Does Your Application and Lease Help Your Collection Process?

Although leasing teams go through tremendous steps in their screening process to select the best renters possible for their community, there will always be circumstances in which a resident is unable to pay the rent and will have to be evicted. These circumstances can sometimes be due to resident fraud but in most cases they are caused by circumstances beyond the resident’s control - like a loss of a job, illness or divorce.

When residents stop paying rent, it’s important for the property management company to quickly take the necessary steps to evict the resident from the premises. Most of your legal avenues for collecting unpaid back or delinquent rent from residents will be defined and supported by your lease agreement. At FCO, we also recommend that the introduction and authorization of collections activity should begin with your rental application language. By having the applicant and potential resident acknowledge that their consumer history can be subject to review in the future for reasons including collections, you set a firm legal foundation for locating the debtor after the lease and heading off needless FCRA disputes. Doing things the right way from the get-go will help you and your firm avoid costly litigation, credit bureau disputes, Attorney General complaints and Consumer Financial Protection Bureau disputes.

Want to discuss improving your firm’s rental collections process?
Contact Elaine Owens at sales@fco.com or (301)260-5395

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