1st Choice for Debt Collection for Estate Agents
Debt Collection for Estate Agents
Unpaid or overdue fees are becoming an increasingly common problem for a large percentage of estate agencies. Unpaid sales commissions can lead to questions over any estate agents long term financial sustainability.
As such, debt collection for estate agents has become a needful service to maintain the industry’s longevity. Federal Management is one such agency that, alongside our partners, Frontline Collections, can help to recover overdue amounts from vendors who failed in their obligations to pay agreed fees or commissions.
In the UK, there are over 21,000 estate agents that provide a vital role for both individuals and organisations. This number does not include those that operate as self-employed or who are not registered as limited companies.
They are responsible for the selling, renting and management of properties, and deserve to be paid for their time and efforts on behalf of their clients. Regrettably this is not always the situation.
Self-employed estate agents rely on getting paid more than the larger organisations such as Purplebricks or Connells. The amount of agencies that operate within the country highlights a valid reason for why this is so common.
Estate agency fees can go unpaid for several reasons, and sometimes cannot simply be avoided. It could be that a landlord has not paid the agency fees for a commercial property that is being let.In other scenarios, a tenant may not have paid rent for a property that is being managed by the agents.
No matter the situation, a debt collection for estate agents solution is needed to help get them paid.
Debt Collection for Estate Agents – The Options
Sometimes, a simple conversation with the debtor to make them aware of the amount outstanding is enough to produce a payment.
You must remain professional at all times when communicating with the person that owes you money.
Estate agency fees that are left unpaid are nothing new, however, there are options available to recover the debt.
Recovering Unpaid Estate Agency Fees In-House
As with resolving any issue, it is almost always best to try to mitigate the problem alone before considering other options.
Whilst this may prove to be successful in some situations, it usually wastes time and money.
Estate agents are naturally very busy, as many will have a portfolio of properties to look after.
As such, they may not have the resources or time available to try and recover their unpaid fees alone.
They may have their credit control teams whose purpose is to ensure the cash flow of the business is sustainable.
Credit control teams should spend their time carrying out tasks that will grow the business instead of chasing debts.
Hire a Debt Recovery Solicitor
There are around 145,000 solicitors in the UK, making this a popular method for recovering unpaid estate agency fees.
Despite this, using a solicitor is known to be costly, with some charging between £200-£400 per hour plus legal disbursements.
When court action is required, this can increase the costs as these drag on for months at a time.
This can be an effective method of recovering unpaid estate agency fees, but it can come at a very high cost.
Solicitors charge by the hour, with some charging up to £200 for their services hourly. As court cases can drag on for months, this cost becomes greater over time.
What if there was an affordable debt collection for estate agents solution which was effective?
Instruct a Professional Debt Collection Agency for Estate Agents
The solution for businesses that need commercial debt collection for estate agents is to use a professional.
Hundreds of debt collectors operate in the UK, but it is recommended to choose one that deals within this sector specifically.
Federal Management, alongside our partners, Frontline Collections, provide the leading debt recovery service for estate agents.
Some of the main benefits of using our debt collection for estate agents’ services are:
- A recovery rate of up to 90% and above on all undisputed debts.
- Low commission rates result in a cost-effective service for estate agents.
- We are authorised and regulated by the Financial Conduct Authority.
- Recognised by the Credit Services Association.
Considering that estate agents are so highly regarded, we ensure to only act professionally to preserve existing relationships.
Estate agency and property debt collection is a vital service that is used by hundreds of agencies every year.
Regardless of whether you are owed money by someone registered in England and Wales, Scotland or internationally, we can recover it.
If you are an estate agent that has not been paid, please complete our enquiry form or contact our experts today!