Has anyone used the Tenant Debt Reporting Service here on Mr LL?

What was the cost and how many tenants?

Do they charge a percentage of what they collect?

Jeffery I thank you so much when you publish rates for collection. When in open court the judge or defendant question our meer 25% collection fee compared to others--(always over 30%) we look good. 15% interest a year on unsecured debt is good also.

myob, for clarity, just want to make sure are you not mixing apples and oranges here.

I thought your 25% collection fee you are referring to is on TOP of the past debt due amount owed and ADDED to the total the renter must pay. Please correct me if I'm wrong.

For example, if a resident left owing you $1,000. Would not your 25% collection fee (outlined in your lease) that the judge grants you mean that the former resident now owes you

$1250 plus your 15% interest?

In my earlier response to Steph, I was simply saying if a renter left owing $1,000, and the collection company helps in getting the resident to pay the $1,000; the landlord would receive $620 of the money collected and the collection company gets $380. This is still a better deal for the average landlord who had not previously gotten any money from a debt that they had not collected.

It should be noted that in using the dept reporting service, before a debt is reported (first part of the process) the former resident is warned that the debt is about to be reported to the credit bureaus, but that the former resident can pay the landlord to avoid this from occurring.

Yes 100% right. The renter MAY pay the original amount of the judgement so we would have no right to any fee for collection or interest on the debt.

When the garnishment paperwork is submitted-- that's when the word "OTHER" COMES INTO PLAY. Other includes the 25% collection, 15% interest and of course the court fees.

Past debtors sometimes file an interrogatory with the court. It's not to question the judgement because the judgment has already been decided-- it's to question the OTHER Fee's.

Jeffery I realize you know all this already but was trying to let others here know about some things you run into.

For Ex. Here we have to file continuing garnishment every 6 months. Takes some paperwork but the court wants to be sure the debt is still owed before they continue to take the renters funds from their pay.

Success rate - well it is not super high.......but if you do nothing at all, your success rate will match that too.

If someone did you bad, and they have assets that are liquid and are collectable......this is not a bad resource to have in your tool belt.

If they have cash - a personal judgement also works too.

You can always take and sheriff sale their items. So it is best to have multiple tools available.

Here is my advise to LL's-- take it or not. When your tenant doesn't pay rent--STOP with the "maybe they'll pay". The process is-- no pay get to court and file for none payment. This gets you in the door on the court house and legitimizes your claim. Look you can make it clear to the tenant once you pay I'll remove my action but I go to court to protect the owners interest. Now with your court action in work-- if they answer you can plead your case and get your judgement-- if they're a no show for court-- you can sue for your place back and have the first step of your process for getting paid. Keep in mind to get that judgement-- perfected you must show the person was served. This is why we remind the tenants to ANSWER the court-- that shows service-- and it's a winner all the way to garnishment. DO NOT FEAR THEM ANSWERING. We sometimes remind them court date is coming so show up.

MYOB- sage advise. LL have to lead. If you are led, you will not get favorable results.