© 2010, 2011 Crown Investor Institute, LLC 1 Please turn your phone back ON when class is over.

© 2010, 2011 Crown Investor Institute, LLC 1

Please turn your phone back

ONwhen

class is over.


Unlocking the Hidden Profits in Property

Management

Instructor

Robert M. Locke, RMP, MPM

With a Rent Recovery® Business


Course Objectives

• Examine the Opportunities with a Post Move-Out Recovery Business

• Establish Success Criteria for this Process

• Evaluate Steps to Creating a Successful Rent Recovery® Business

© 2010, 2011 Crown Investor Institute, LLC

Best Kept Secret of Property Management

There’s

_____ ____________

in

property management

the way

m___________ m_________________

do it.


Stop Thinking You’re a PM

Business

Business

Real Estate

Real EstateProperty Manager


Stop Thinking You’re a PM

© 2010, 2011 Crown Investor Institute, LLC

New Business to Consider

Collecting outstanding balances

left behind when tenants move out of your property.


A Question to Get Us Started

What does your company do with

unpaid balances after move-out?

Ask Your Neighbor

• Unpaid Rent

• Late Fees

• NSF Checks

• Unpaid Utilities

• Damages

• Missing Keys and Garage Remotes

• Trash Out


Should You Chase Them?

• Do They Really Owe the Money?• Should They Be Allowed to Just Walk

Away?• Is it Your Job to

Enforce?• Does Your Owner /

Client Deserve Some Options From You?


Excuses I Used To Avoid This

• “Collections” Carries a Negative Image• You Can’t Get Blood Out of Rock• Someone Might Get Mad At Me• I Don’t Know the Processes• I’m Afraid of Courts / Lawyers• I don’t have Time for Another Business• There’s No Serious Money Chasing

Tenants After Move Out• Stop Relying on Your Experience


Cash Recovered to Date


Your Property Management Model Makes a Difference

• Managing Low Rents

• Managing Low Credit Scores

• Loose Qualifying Guidelines

• Sloppy Management Processes

• Managing Transient Areas

• No Charges Built Into Your Lease

Make Pursuing Them Worthwhile


Get Agreement With the Owner

• Remember Your Agency Duties• Not Every Owner Wants to Chase • Lay Out Your Rent Recovery Steps• Outline the Risks• Get Owner’s Instructions

in Writing (DL)

• Don’t Exceed Your Authority• Remember: Some Agency Duties Extend

Beyond Your Separation with the Owner.


Start With a Series of Letters

• Start Soft and Friendly (DL)

• Start Using Stronger Language• Explain Potential Consequences for

Ignoring Your Notices– Mark their Credit– File in Court– Judgments– Garnishments

• Give Timelines to Solve


Offer Settlement Options

• Offer Payment Plans (code for Promissory Notes)

• Converting a C________ to an A_____________

• Offer to Settle for a Cash Payment


Mark Their Credit

• Join a Credit Reporting Service

• Get Your Tenant Screening Provider to Help You

• Use a Traditional Debt Collection Company


File in Court

• Same as Eviction Court• You Don’t Need a Lawyer• Tenants are Afraid

of Court Too• Drive to Settlements


Process Your Judgments

• Recorded on Their Credit• Perfect Your Judgments

– Attach to Their Income– Attach Bank Accounts– Attach Real Estate– Attach Car Titles


Fair Debt Collections Act

• It’s Shorter/Smaller than Your Landlord Tenant Act

• Drives Courtesy• View it as Your Armor

and Not Your Enemy• Pays a Lot Better Than

Property Management


Who is Going to Teach You?

• County Clerk’s Office• Judges• Your Attorney• The Tenant’s Attorney• You’ll Learn From Your

Mistakes• Don’t be Afraid• It’s a Long-Term Residual Business


Some Real Experiences

• Receiving $11,000 Check With No Name

• Cosigner Pays $27,000 after Second Letter

• Tenant Signs Note for $7,500 at $50 a Month and Pays Off After 6 Months

• Filed an I-9 and 6 Years Later Received $9,750 from a Closing Attorney

• Tenant Hires an Attorney / Prepaid Legal


Ethics: Who Gets The Money?

• Give It All to the Owner?• You Keep It All?• He Who Pays the

Expenses and Takes the Risks Should Get the Money

• Get Owner’s Permission / Release


Ethics: Who Gets The Money?

• Chase Your Money but Not Theirs

• Offer Splits on What You Receive

• You Get to Apply Collected Funds to Whatever the Tenant Owes


What is Holding You Back?

• “Collections” Carries a Negative Image• You Can’t Get Blood Out of Rock• Someone Might Get Mad At Me• I Don’t Know the Processes• I’m Afraid of Courts / Lawyers• I don’t have Time for Another Business• There’s No Serious Money Chasing

Tenants After Move Out


[email protected]

Cell 404-787-3749

CrownInvestorInstitute.comFree class downloads Rent Recovery Conference

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© 2010, 2011 Crown Investor Institute, LLC 1 Please turn your phone back ON when class is over.

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