Case Study: Promoting Pride in Property Helps Procure Payments
Blank Family Communities was enlisted by ownership of a 100-site community, located in the Indianapolis MSA, to take over management of the property.
While the community was over 90% occupied with resident owned homes, there existed a major issue related to delinquency/collections. Over the previous 2 years, the community had a rolling end of month delinquency of 15%.
We set up a 90-day timeline for corrective measures and approaches.
First, we went into the community and immediately addressed deferred maintenance of the property. This included cleanup of common areas, light tree trimming and some road repair. After these initiatives were completed, we next implemented increased collection efforts.
These efforts included:
· Sending a Notice of Demand letter for all residents with a delinquent balance of over $100
· Increasing collection calls to 2x per week
· Increasing collection door knocking to 1x per week. This is where we experienced the biggest results.
By day 90 of our managing the community, we had reduced delinquency to 0% — and have continued this $0 balance in subsequent months.
Collection efforts work, especially when applied consistently, professionally and with appropriate follow-up. Remember, for property operators to expect more of our residents, we must hold up our end of the bargain. In this case, our up-front efforts to improve the community and, in turn, the day-to-day quality of life of our residents, made the difference.