Part 7: CREDIT CONTROL
We all invest our time in multi-lets for different reasons but whether it’s purpose or profit, having a solid handle on what is to come in and when, is the lifeblood of your business.
The danger however is as a one man band or small business, sometimes it’s easy to get distracted by going out and ‘turning the tap on’ some more rather than making sure the water is actually filling the bucket.
Not only that, chasing tenants for money is not the most engaging task and one many will avoid or at best, struggle to execute when we want to maintain relations or avoid conflict.
There are two parts to making sure the money is in the bank when it should be.
The first is ensuring the referencing process is solid and that every tenancy issued is well appraised and backed with the security it requires on a case by case basis, though this does not need to include a high deposit or any at all for that matter. Although this will reduce the volume of bad debt cases that occur, there will always be some that require your attention.
The second, for those that require your attention is a solid credit control process that is not only well executed, but is implemented on a daily basis. Consistency really is key with credit control especially when you get to a larger scale and it doesn’t take more than a couple of days of taking your eye off the ball for collections to decrease at pace.
At Multi-Let UK we collect over £100,000 per week via our custom built finance and credit control team. They execute bespoke Multi-Let processes and operations that have been custom built for the professional Houseshare market and accommodate all the niche complexities and challenges familiar in this sector.
If you currently have 50+ HMO/Multi-Let rooms in your area and would like to discuss the opportunity of working with Multi-Let in 2017 and beyond please find out more or register your interest or join us on one of our upcoming Multi-Let UK webinars.