How to reduce bad debt in real estate? See more

In fact, in the face of so much unemployment and insecurity for which the country lives, it is difficult to maintain control over the situation. However, all is not lost - be aware that it is possible for managers and realtors to use strategies that make it possible to have greater control over the problem.

In this context, we will list some good tips that can make defaults contained and the real estate management remain balanced. Continue with us and check it out!

What is the importance of good management in the real estate sector?

Good real estate management is what will determine your permanence in this very competitive market. This means that in order to guarantee a level playing field with the competition, it is necessary to have good planning and a well-organized structure - factors that will contribute to effective decision making.

This also includes having to adapt to the demands of a new consumer who has emerged in the midst of so many technological changes and who expects a differentiated and personalized service. Keeping these issues in mind, it is possible to avoid the mishaps, such as defaults, that occur in any sector of the market.

www.skymarketing.com.pk strives to be Pakistan’s biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. With projects blue town sapphire lahore map

What to do to reduce bad debt?

It is a delicate matter, since no one is in default because he wants to. Therefore, we will list some actions that can work around the problem in some of the cases. Look!

Build a good customer relationship

Maintaining a good relationship with the client guarantees a series of benefits for any business, one of which is spontaneous marketing - that landlord engaged with your brand will certainly make a good advertisement for your real estate, recommending it to your acquaintances.

This can guarantee that in times of crisis he seeks to maintain this relationship, looking for alternatives so that, in the face of financial difficulties, he will honor his debts or at least try to negotiate them - reducing the risk of default for the real estate company.

Do a good credit analysis

The broker at the time of carrying out the credit analysis must be based on the rental guarantees and, therefore, ensure the receipt of the rent by the lessor. We must remember that, with the exception of surety insurance - which is guaranteed by the insurer’s credit analysis - all other forms of assessment are the responsibility of the broker.

In this context, it is up to him to proceed with an impeccable credit analysis and, in this way, to protect the lessor against possible defaults. For this, the broker must evaluate the financial condition of the lessee well, checking his CPF, consulting his monthly income, among other measures.

Use a Billing Ruler

It is a very useful tool that can be used both to prevent late payments and to recover credit. They are notifications sent via email, phone and SMS, creating a schedule with the path that the customer will take before and after the lease expires.

With it, there will be greater control over payments, such as the example below:

e-mail with payment slip: 5 days before expiration;
SMS advising about the due date and the payment link: 1 day before the due date;
SMS alerting about the delay: 3 days after the due date;
Telephone contact requesting payment: 5 days after the due date.

The importance of this tool is intensified because the default often occurs due to the lack of organization of the tenant . Alerts ensure that debts are remembered and don’t get out of hand, turning into a snowball.

Another great advantage of the collection rule is to avoid proximity to the defaulting customer, saving any discomfort that may arise. In this way, communications are made automatically, preventing any embarrassment.

Facilitate access to payment slips

Billets appeared to make everyone’s life easier. Working with this type of document often avoids default. This work is made even easier when the real estate company works with a system that manages the duplicate in a simplified way.

Another facility to use this type of charge is the use of a system that allows the automatic sending of the billet by e-mail on a previously selected date.

Validate the data of the tenant and everyone who lives in the property

It is advisable that not only the data of the tenant be obtained, but also of all those over 18 who have income and are part of the family. Thus, there is one more alternative for the broker to negotiate the payment of rent installments in arrears.

This is a way that the real estate company will have to recover the credit - bearing in mind that in the event of a default, it will be able to negotiate not only with the contract holder, but also with the other interested parties.

Use financial diagnostics

It is a very effective tool that allows the manager of a real estate company to have access to the financial panorama of his business. In fact, it allows a visualization of everything that happens in the company: its revenues and expenses.

With this tool, it is possible to have access to a summary containing the active contracts, total revenues, leases, the evolution of the customer portfolio in the last year, among other features. The metrics adopted guarantee a control over the customers’ entrances, exits and defaults. With this, it is possible to obtain a financial diagnosis of the real estate.

Negotiate with the customer

Contact the customer when observing the first delays - when it is still possible to reverse the situation. Maintaining a good dialogue to find alternatives together is always a big step to prevent the problem from evolving. It is a complicated time and seeking solutions to avoid defaults is the goal of everyone involved in the negotiation.

Delinquency is something that worries a lot of administrators and with the real estate market this is no different. Especially, in times of crisis, this concern increases, because the problem reaches alarming levels. How, then, to reduce bad debt in the midst of the moment in which we live? In fact, in the face of so much unemployment and insecurity for which the country lives, it is difficult to maintain control over the situation. However, all is not lost - be aware that it is possible for managers and [realtors to](http://blog.movingimoveis.com.br/direito-imobiliario/) use strategies that make it possible to have greater control over the problem. In this context, we will list some good tips that can make defaults contained and the real estate management remain balanced. Continue with us and check it out! **What is the importance of good management in the real estate sector?** Good [real estate management](http://blog.movingimoveis.com.br/confira-7-novas-tendencias-de-gestao-para-mercado-imobiliario/) is what will determine your permanence in this very competitive market. This means that in order to guarantee a level playing field with the competition, it is necessary to have good planning and a well-organized structure - factors that will contribute to effective decision making. This also includes having to adapt to the demands of a new consumer who has emerged in the midst of so many technological changes and who expects a differentiated and personalized service. Keeping these issues in mind, it is possible to avoid the mishaps, such as defaults, that occur in any sector of the market. [www.skymarketing.com.pk](https://www.skymarketing.com.pk/) strives to be Pakistan's biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. With projects [blue town sapphire lahore map](https://www.skymarketing.com.pk/blue-town-sapphire-lahore/) **What to do to reduce bad debt?** It is a delicate matter, since no one is in default because he wants to. Therefore, we will list some actions that can work around the problem in some of the cases. Look! **Build a good customer relationship** Maintaining a good relationship with the client guarantees a series of benefits for any business, one of which is spontaneous marketing - that landlord engaged with your brand will certainly make a good advertisement for your real estate, recommending it to your acquaintances. This can guarantee that in times of crisis he seeks to maintain this relationship, looking for alternatives so that, in the face of financial difficulties, he will honor his debts or at least try to negotiate them - reducing the risk of default for the real estate company. **Do a good credit analysis** The broker at the time of carrying out the credit analysis must be based on the rental [guarantees](http://blog.movingimoveis.com.br/descubra-qual-o-melhor-tipo-de-garantias-locaticias-para-voce/) and, therefore, ensure the receipt of the rent by the lessor. We must remember that, with the exception of [surety insurance](http://blog.movingimoveis.com.br/seguro-fianca/) - which is guaranteed by the insurer's credit analysis - all other forms of assessment are the responsibility of the broker. In this context, it is up to him to proceed with an impeccable credit analysis and, in this way, to protect the lessor against possible defaults. For this, the broker must evaluate the financial condition of the lessee well, checking his CPF, consulting his monthly income, among other measures. **Use a Billing Ruler** It is a very useful tool that can be used both to prevent late payments and to recover credit. They are notifications sent via email, phone and SMS, creating a schedule with the path that the customer will take before and after the lease expires. With it, there will be greater control over payments, such as the example below: - e-mail with payment slip: 5 days before expiration; - SMS advising about the due date and the payment link: 1 day before the due date; - SMS alerting about the delay: 3 days after the due date; - Telephone contact requesting payment: 5 days after the due date. The importance of this tool is intensified because the default often occurs due to the lack of organization of the [tenant](http://blog.movingimoveis.com.br/direitos-e-deveres-do-inquilino-o-que-voce-precisa-saber/) . Alerts ensure that debts are remembered and don't get out of hand, turning into a snowball. Another great advantage of the collection rule is to avoid proximity to the defaulting customer, saving any discomfort that may arise. In this way, communications are made automatically, preventing any embarrassment. **Facilitate access to payment slips** Billets appeared to make everyone's life easier. Working with this type of document often avoids default. This work is made even easier when the real estate company works with a system that manages the duplicate in a simplified way. Another facility to use this type of charge is the use of a system that allows the automatic sending of the billet by e-mail on a previously selected date. **Validate the data of the tenant and everyone who lives in the property** It is advisable that not only the data of the tenant be obtained, but also of all those over 18 who have income and are part of the family. Thus, there is one more alternative for the broker to negotiate the payment of rent installments in arrears. This is a way that the [real estate company](http://blog.movingimoveis.com.br/como-fidelizar-clientes-na-imobiliaria/) will have to recover the credit - bearing in mind that in the event of a default, it will be able to negotiate not only with the contract holder, but also with the other interested parties. **Use financial diagnostics** It is a very effective tool that allows the manager of a real estate company to have access to the financial panorama of his business. In fact, it allows a visualization of everything that happens in the company: its revenues and expenses. With this tool, it is possible to have access to a summary containing the active contracts, total revenues, leases, the evolution of the customer portfolio in the last year, among other features. The metrics adopted guarantee a control over the customers' entrances, exits and defaults. With this, it is possible to obtain a financial diagnosis of the real estate. **Negotiate with the customer** Contact the customer when observing the first delays - when it is still possible to reverse the situation. Maintaining a good dialogue to find alternatives together is always a big step to prevent the problem from evolving. It is a complicated time and seeking solutions to avoid defaults is the goal of everyone involved in the negotiation.

#33 How to reduce bad debt in real estate? See more