Successful debt collectors?

[Andrew S.]

I’m curious what people’s experiences are with debt collectors (from the point of view of collecting money owed to you).  Let’s say you obtain a judgement against a former tenant of a few thousand dollars.  Often it is very hard to collect on this judgment, so one option is to turn it over to a pro.  What are the go-to companies for this?  Do they tend to be local, regional, or national?  Do they tend to buy the judgment outright ( for say, 10 cents on the dollar), or do they take the task on contingency?  Or do they actually require upfront payment of some sort?

[Andrew Kerr]

@Andrew S. I use Rent Recovery Solutions. They focus just on rent collection. 

Getting debt collected is tough and will depend on the tenant class you are dealing with. I will give you a couple examples that I have dealt with:

1) White collar tenant - they felt they were right, so they didn't pay for damages and the final months rent. I filed for small claims, I won, they paid. They had the money to pay, they just didn't because they didn't feel they owed me until they were legally proven wrong.

2)Another white collar tenant - I warned them I would turn the file to collection, they didn't pay, I turned it over. They got mad it went on their credit. I don't expect them to pay until they try to buy a house.

3)Foreign exchange students - they caused a property fire, over $20k in damage. They also let their rental insurance cancel without my knowing. They didn't feel they had to pay because I had insurance. They also felt since they were going home in another year or two it wouldn't matter. My lawyer wrote a firm letter saying if they didn't pay, he would make sure the state department knew they were skipping out on their obligations, and if they tried to renew their student visa, or go to apply for a work visa after graduation it wouldn't look favorably. Their parents wired the whole amount to me the next week.

4) Blue collar or affordable housing tenant - they live paycheck to paycheck, they skip out on the last months rent so they have money to use as a deposit for their new place. They might have damages & cleaning that exceeds their deposit. They don't pay because they don't have the money. And they most likely won't have the money. You just file for collection so if future landlords do screening they see they skipped out. You can hope they get their act together or start making more money in the future and clean up their credit.

Rent Recovery Solutions has collected on some money for me, but its always at a discounted rate. They are good about doing calls/letters around tax time as they know folks are getting money back. Most of the money I don't every expect to get back.