Who Should Not Start a Rent Recovery Business
1. If you are relatively new at property management, then you need to focus on that business for a while. Property management has lots of learning curves and technology to get your head around. You need to focus on your primary business for a few years before you step out and start another business. Setting up a maintenance company, a brokerage department, a home inspection business or a rent recovery company may be in your future, but until you have the management business running smoothly and build your numbers, you shouldn't think about another business; no matter how part time it might be.
2. If you are a sloppy property manager, then you won't have much success at collecting balances post move out. If your documents are weak, move-in inspections spotty, move-out inspections sloppy and you don't keep good records, you'll find this business difficult.
3. If your tenants are the low credit tenant model you won't do well at this business. If you're managing tenants who are chronically broke, have low credit scores and will never need good credit in the future to buy a house, then don't waste your time. Part of why our rent recovery business has been successful is because we lease to people who care about their credit, are future home buyers, and care about keeping their credit scores up.
4. If your average rent is $700 a month, then you probably shouldn't set up a rent recovery business. Low rent tenants leave owing small amounts. Why invest your time chasing small balances?
5. If your tenants don't leave owing balances, then this business would not make sense for you. If your tenants don't skip, always pay their last month's rent, pay for property damages and pay their outstanding charges, then you don't need a rent recovery business.
6. If you are looking to make quick money, then don't do rent recovery. This is a marathon; not a sprint. It doesn't take much time, but it does take patience. This is a residual, pipeline business. If you're looking for a quick payoff, look elsewhere.
We want to help you succeed. We will not "talk you into it". For any number of reasons, some property managers should put their energy elsewhere. We'll help you think it through and make sure it makes sense for both of us.