As we’ve spoken about in a previous article, old commercial debt can be a weighty burden on landlords left to cover unpaid rent. In that article, we went on to suggest engaging with a commercial property management company such as Carlton Park in order to recover old commercial debt, relieving the anxiety of missing out on what is owed.
In response, we were asked a question we’ve grown accustomed to hearing since Carlton Park started offering old commercial debt recovery: why should a landlord choose a property management company to recover their debt, instead of a debt collection agency?
Our experience points to more than one reason as answering that question, and we’d like to take you through those reasons below.
As mentioned above, Carlton Park already offers this service to our clients, and we’ve successfully recovered large amounts of old commercial debt. The key to this success has been applying extensive, specialist experience and knowledge to the problem. This understanding makes us aware of loopholes, legal restrictions, and tactics which ensure a satisfactory outcome for all involved.
This is perhaps one of the most significant reasons in favour of using a commercial property management company, and yet one so often overlooked. Because we understand and are well-versed in commercial property law, we’re able to advise clients to refrain from knee-jerk reactions against tenants. Although it can be frustrating to be owed a large sum of money for some time, reacting in such a way can work against landlords. Such knee-jerk reactions could include forfeiting leases or changing locks when tenants owe rent – moves that can limit how much a tenant can be pursued for their debt and complicate the landlords position. We won’t let that happen, strengthening the case for debt recovery.
Debt collection agencies do a tremendous job of recovering debt for their clients, however TV shows and word of mouth has left the profession with the image of being the heavy-handed approach. By engaging with professionals who are well-versed in recovering this type of debt, tenants who still owe rent and service charges are more likely to co-operate thanks to a gentler approach.
With an outstanding debt already weighing heavy around a landlord’s neck, the last thing they want is to be paying more money to recover said debt without the guarantee that they’ll get most or all of it back. That’s why we operate on a no win, no fee basis, taking only a percentage of the recovered debt once it’s been returned. This allows us to do our best work and clients get a sizeable amount of what’s owed to them back. What’s more, allowing us to handle the recover means the chances of having to go to court to recover said debt is less likely.
With our expertise and the more strategic approach on our side, we’re more likely to secure old commercial debt and recover it for clients, compared to a debt collection agency. We can work with both sides, mediating for a great result. Also working in our favour is our dedication to ensuring our clients recover as much of their old commercial debt as possible – we work for you.
So, if you’re suffering with old commercial debt, unsure if you’ll ever be able to recover any of it, let Carlton Park try. We’ll apply our professionalism and understanding to help you get one step closer to recovering your tenants’ debt. If you have old commercial debt and you’d like some help to recover it, get in touch via our website.