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Debt recovery services?

Discussion in 'Property Management' started by mini2, 13th Nov, 2015.

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  1. mini2

    mini2 Well-Known Member

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    18th Jun, 2015
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    Location:
    NSW
    Long story short, tenant in arrears, went to SACAT and gave them a payment plan instead of the posession order I was after. The tenants didn't cough up the cashola. Looking to get them evicted and chase them up for the arrears. Is using a debt recovery service useful or an absolute waste of time?

    Thanks :)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Are you prepared to spend money? Is the debt worth chasing? Do you know where the tenants are?
     
  3. Xenia

    Xenia Adelaide Property Manager Business Member

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    Location:
    4/136 The Parade Norwood, South Australia
    Hi Mini
    Was this the first payment plan?
    If you are dealing with SACAT you need to arrange an urgent tribunal hearing based on non-compliance with the payment plan.

    They are likely to overrule and put the tenant on another payment plan because that's just what Sacat does.

    Arrears can be claimed through landlords insurance with no Excess applied - this is the most cost-effective way to do it.

    You can also make a claim through magistrates Court. This is also more cost-effective then using a debt recovery service.

    For future you can use Barclays MIS for debt recovery but it's more cost-effective to use them if you have subscribed to them right at the beginning of the tenancy.
     
  4. mini2

    mini2 Well-Known Member

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    Location:
    NSW
    The tenants are still slumming in my property and doesn't appear wanting to move anytime yet. Happy to spend money for the sake of causing them grief with the next rental.

    No LL insurance on this property so unfortunately I'm up the creedk without a peddle. Silly me for thinking they've been here for 7 years with OK payment history shouldn't require it. Just want to get them out ASAP so I can refresh it a bit and rent it out again.
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Adelaide, SA
    Remember to list them on both of the tenancy databases to prevent someone else ending up with them. Together we can all make a difference :)

    And always always get insurance!
     
  6. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Location:
    Perth
    I have a long term debt recovery plan in action. Its slow and painfull but brings a smile to my face knowing they are still having to pay me for their poor decisions.

    Costs about 20-25% of all money collected. If you can be bothered with it.