TMHA Using New Computer Software - Review Your Checks For Accuracy

Participating owners on the program will notice a significant change in the style of the correspondence that they will be receiving from the housing authority including a slight change to the checks you will receive from us. The housing authority recently purchased and implemented a new computer software program which is critical to operations of the authority. Part of the transition to this new software involved transferring all of the information from our old operating system to the new software. Although significant efforts were made by housing authority staff to ensure that all of the information transferred accurately, it is possible that glitches
could occur. That is why we would like all owners to double check the amounts that they receive in their checks this month to make sure that it is correct. Please call the office right away should you notice any discrepancies in the check that you receive. 

Due to the change in style of the form letters you will be receiving, should you have any questions regarding their content, don't hesitate to contact the TMHA office for clarifications.

Completed Rental Applications Are The Key to Debt Collection

According to collection agencies, 85% of all credit and rental applications are incomplete. Yet the more information you have, the easier it is to locate a missing tenant or debtor later. Additionally, the more credit information an applicant furnishes, the less likely they will skip or default to begin with. No one wants to have creditors contacting their friends, relatives and employers to look for them.

Collection consultants contend that valid telephone numbers are often the key to locating and then collecting from skipped tenants. So consider revising your rental application form to include several phone numbers. For example, in addition to home and work, ask for previous landlords, relatives, friends, references, emergency contacts, doctors, baby-sitters, schools, banks, etc. It also pays to request annual credit updates from your tenants. But remember, obtain prior permission from residents to check credit and contact references regarding debt collection, should it become necessary. The Fair Credit Reporting and Collection Act regulates just what you can do to collect a debt. Even if you have written permission granted in your application or agreement, whenever you contact others in an attempt to locate someone, don't mention the existence of any debt owed.

Although, having numerous phone numbers will help you locate a skipped tenant, collecting from them is still difficult. Consequently, many landlords simply turn over their rental applications to a collection agency to recover rental income (usually for 30% or more of the money collected) because they have more success. The numerous telephone numbers you  have will also make it easier for a collection agency to find a skipped tenant  and notify them of the money due, and the penalties in the event of non-payment. Sometimes a professional collection agency can use tactics you are not even aware of to persuade a tenant to pay, even after you've done all you could do to get your money.

It is sometimes worth the extra effort and additional court fees to get a money judgment for back rent and damages, in addition to possession. Even if the tenant is a deadbeat they may someday turn their life around. Your judgment is collectable for ten years and earns interest. Some day your deadbeat may try to buy a house or car and be told they must clear your judgment from their credit report first. That may lead to a surprise check in the mail, even though you have done nothing yourself to collect. There is also a landlord's revenge available. If you haven't collected on the debt after nine years or so, threaten to forgive it with a letter to the IRS. The amount of the debt, plus interest, will become income to your former tenant that year and mess up everything from earned-income tax
credits to expected refunds. If they still don't respond with an offer to pay, actually do it.

So remember, the most important tool you can use to prevent and/or locate skipping tenants, even years later, is to have a completed rental application on all residents. Require copies of complete applications from all sellers you purchase properties from too. If the applications are not complete, obtain permission to contact existing residents prior to closing and immediately update these records.

Source: www.rhol.com

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