Debt recovery

Discussion in 'Legal Issues' started by Jenko, 8th Nov, 2017.

Join Australia's most dynamic and respected property investment community
  1. Jenko

    Jenko Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    75
    Location:
    Boyne Island
    Does anyone subscrib to debt recovery company? And if so is it wroth the $66 per year? Barclay MIS
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    I asked about them in another thread here Barclay MIS Debt Collectors because they came to our office offering their services. I didn't end up going ahead with it - sounds great in theory, but upon further pondering wondered how good it'd be in practice.
     
    Jenko likes this.
  3. Jenko

    Jenko Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    75
    Location:
    Boyne Island
    Thanks for the feedback DT and yes that's what I was suspecting. I have a few IP's around QLD and one particular PM has always encouraging me to take the insurance, I thinking they must be getting a kick back. Investing for 8 years now and haven't lost any substantial amount to date....... Touch wood.
    .
     
  4. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Omg don’t say No to Barclays.
    For $66 they intervene in evictions as well as the property manager and they chase debt.

    They take no margins in recovered debt, other debt collectors will take 50%.
     
  5. 158

    158 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,275
    Location:
    Brisbane, Qld
    If a debt collector is not taking a margin of the collected debt, then they only make money on memberships.....

    Its a lot easier to sell the sizzle than it is to cook the bacon.

    What motivates them to do anymore than send a few letters and texts to chase debts when they already have the fee paid.....

    pinkboy
     
    qak likes this.
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    I get the impression there is more to this than $66 a property per year. Thats all the owner pays IF the tenant pays the full claim. And it may rely on a LL policy if a claim fails otherwise.

    http://barclaymis.com.au/brochure/Protect_and_Collect.pdf

    However I suspect they rapidly load fees to the defaulting tenant and they pay for the tardiness. Its not spelled out but I may argue that unpaid rent may rapidly attract notices, fees for notices and service of notice and so on. So for $66 it may quickly encourage some to pay. if the weight is heavy and serious. And the T&C seems to indicate if less than 100% is received then Barclay and the LL shall each get pro-rata. So the $66 may not be the sole cost BUT perhaps with LL cover it may ?

    Their other service to vet tenants seems to be tied to the agent reporting all defaulters too. Barclays win when agents are involved.
     
    TMNT and Jenko like this.
  7. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    I too would love to use a debt collecting agency for dud tenants.

    I assume it's not possible but a service that chases debts for no fee upfront and a decent percentage would be great.
    Makes them work hard

    Or am I dreaming :)
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    Your dreaming because debt recovery costs a lot of money and time with little chance of recovering any money at all.
     
    Paul@PAS likes this.