Using Collection agencies to get back rent

[Gulliver R.]

Has anyone ever used a collection agency to get unpaid rent plus late fees paid back to you from your past tenants?

How does it work?

What does it cost usually?

What collection agencies do you recommend?

And do you recommend going this route?

I really appreciate it!

Best,

Gulliver

[Nathan Gesner]

Collection agencies (in my experience) don't charge anything up front. They keep a percentage of the money collected, usually around 35-40%. I have about 25 collection accounts against former tenants. Only two were paid in full. A few others have received minimal amounts. My oldest collection account owes nearly $3,000 and the agency has collected $60 in the past six years even though both tenants live and work locally (part-time jobs).

A collection agency is not a magic solution but it ensures the debt remains on their credit report and hopefully prevents them from taking advantage of someone else. And you may get lucky and collect something.