Would you like to quickly recover more money? A recent article in Shopping Center Business Magazine reveals that landlords are increasingly using outside counsel to collect current and past-due balances. The February16th article, entitled “Property Management Trends to Watch in 2014”, explains that as the economy improves, landlords are increasingly retaining counsel to improve collections. This is good news, since experienced counsel can help landlords increase collections and cut collection costs.
Landlords Can Increase Collections. By speeding up the collection process, landlords can more quickly recover unpaid minimum rent and additional rent including, unpaid taxes, common area maintenance, insurance charges, late charges and attorneys’ fees. Landlords can also transform delinquencies into opportunities, by obtaining the timely, court ordered removal of delinquent tenants. Collections can also be expedited by quickly prosecuting and collecting judgments against delinquent tenants and guarantors. Additionally, collections can be improved by enforcing bankruptcy rights, including assumption or rejection of leases, post-petition obligations and payment of administrative claims.
Landlords Can Cut Collection Costs. Outside counsel can also help landlords to cut collection costs. Landlords can cut costs by improving documents and procedures to permit faster and increased collections. For example, landlords can include lease language required to recover additional rent and attorneys’ fees in New Jersey and Confession of Judgment to expedite litigation in Pennsylvania. Landlords can also reduce collection costs and avoid fees, damages, and penalties, by ensuring compliance with applicable laws, such as the Fair Debt Collection Practices Act and Consumer Fraud Act. Additionally, costs can be cut by negotiating and drafting settlement documents to permit delinquent tenants to be quickly evicted lawfully and achieve your goals.
Evaluating your legal issues requires careful review on an individual basis with experienced counsel. The attorneys in Stark & Stark’s Commercial and Industrial Real Estate Group can help you to quickly enforce your lease rights and meet your needs.