Collections

[Rashad S.]

Hey, Anyone out there have experience in Rental Collections? I need some advice on how to set up an entity that will take care of a Real Estate company's collections (meaning rent is in default). I look forward to any input and advice. Thanks!

[Derek Smith]

@Rashad S. 

This is such a LOADED question, but I'll to provide a sample of what you may need to do.

1. get an attorney, most definitely should be step one in your process, as they will be able to help discuss the most detailed specifics of your situation.

2. understand collection laws (FCDPA, Gramm-Leach-Bliley, TCPA, FTC, FCRA, etc.) these are federal level; however, you'll also need to understand how collection laws operate on a state level because some states have their own laws that may supersede those on a federal level. EVERY state if you're planning on providing services outside of your home base.

3. get licensed! this will go hand and hand with step one I'm sure.

4. get insurance! lots of it!

5.  beyond this comes the business side of things. phone lines, collection fees, tax structure, ability to record phone conversations, etc.

When you hear the saying, "There is no rest for the wicked" I am certain they are always referring to bill collectors. With having a window of 13 hours a day (6 days a week) to collect on a debt, you must make the most of every minute of every day when doing collections.

This is just the tip of the iceberg. I've worked collections, managed/trained teams of collectors, and helped build a start up site. However, I've never done a start up business for collections, so my experience/knowledge is more so on the operations side of the house. Yet, this should provide a decent start position.

Good Luck!