Collecting From Your Typical Local Corporate Tenant

Collecting from a local corporate tenant is less troublesome than any other client. However, you will have problems at that owner decides to move to another state. All of a sudden, everything changes. They may be protected by laws in their new state. They may also have nothing of any value for you to collect on. This means that you go to court and do everything that you’re supposed to and still wind up with nothing. If everything goes as planned, you may receive 25 to 50% of your losses. It may be more helpful for you if the tenant files for bankruptcy because you can recoup up to 100% of your losses if they do.

Collecting Debts From The Federal Or Local Governments

Bureaucracy is the name of the game in the nightmare that is debt collection from a government source. As a commercial property management business, you will need to be aware that this might be the fight of your life. This is especially true if you’re not there to hold someone’s hand through the entire process. You can guarantee that it will take anywhere from six months to 18 months for the process to be complete. In the meantime, you can complain all you want, but it will fall on deaf ears. Mainly, the bureaucracy in this situation is of a political nature. You simply have to wait for things to get voted on and budgets to be approved. If your local government is bankrupt, you will have an especially hard time and may have to get a special tax incentive just to pay off the bill.

Debt Collection Outside Of Your Normal Geographic Area

Living out of state means that new laws take effect. If your tenant lives in another country or across the country, you may have a real headache on your hands. Consultation with lawyers in the debt collection of field for commercial property management is the norm. They will help you to avoid a great deal of hassle and headache and also help you to collect everything that is owed to you. Smaller accounts are typically seen as a loss and are applied towards taxes. However, if you’re managing a skyscraper, and the entire business collapses, you will of course have more than enough leverage to get what is owed to you.