MYTHS ABOUT RENTAL COLLECTION AGENCIES THAT COST LANDLORDS MONEY
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When dealing with property rental collections, especially when a collection agency is involved, both landlords and tenants can fall prey to common myths and misunderstandings about how the process works. Here’s a breakdown of common collection myths and the reality behind them:
MYTH #1
REALITY
Most rental collection agencies work on a contingency basis, meaning they only get paid if they successfully collect. There are often no upfront costs, and even though they take a percentage of the recovered amount, it is money you likely would not have recovered otherwise.
IT’S TOO EXPENSIVE TO USE A COLLECTION AGENCY
MYTH #2
REALITY
Tenants have the right to dispute a debt under the Fair Debt Collection Practices Act (FDCPA). Collection agencies must validate the debt if requested within 30 days of the notice.
ONCE RENT IS SENT TO COLLECTIONS, IT CAN’T BE DISPUTED
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