Recourse and Arrears is every Property Managers nightmare.
 
First and foremost because of no rental collections, means no owner can pay his bond and no company can stay afloat within this already competitive market. Legal rights and actions to follow have also changed and many companies are still in the dark. So where does this leave an owner and how can He/ She be assured of outstanding arrears being collected?  The process Ecclesiate Debt Management follows is ALL legal and compliant with the Rental Housing Act 50 of 1999 and Debt Collectors Society of which we are members.


 
For your information, Ecclesiate Debt Management procedures are summarized as follows:

 

Step 1 - Ecclesiate Letting make every effort in the first instance to assist tenants who find themselves in difficulties and try as best as we know how, and do as much as we have authority to do, to assist good tenants in managing the difficulty. Where it becomes evident that an equitable solution is not possible and further action is called for, The matter is handed over to Ecclesiate Debt Management to manage the arrears or problem situation. Once Ecclesiate Debt Management receive instruction i.e. on an "unpaid rental" -  which is normally on the 7th of each month, Ecclesiate Debt Management research the problem and take immediate action in the best interest of our client.

 

Step 2 - Should Ecclesiate Debt Management be unable to arrange any mutually agreeable solution and it becomes evident that the situation cannot be resolved, immediate action is taken and Summons is issued. Once the summons has been granted, which is normally within 3 "court" days, it is delivered by the Sheriff of the Court. The tenant has 5 "court" days to reply with a "Notice to defend" or "Acknowledgement of debt". Should no reply be forwarded, a default Judgment is then applied for.

 

Step 3 - In this unfortunate event and as an absolute last resort - normally within 3 "court" days a default judgment will be granted. On a default judgment being issued the Sheriff will complete an inventory list of the tenant's affects which could be auctioned off for recovery of outstanding arrears.

 

Step 4 - A Warrant of Execution is then granted and attachment of effects takes place and items attached are auctioned.. 

 
These basic events that need to occur legally, but Ecclesiate Debt Management make every effort to ensure that the rental collection process and the time and procedures to obtain payment are done as efficiently and as timerously as possible.

As an owner, one needs to bear in mind that although many Management Companies do numerous checks - including credit checks, and have other facilities available to check perspective tenants, no Management Company can determine the actions of any prospective tenant or future circumstances of tenants that might occur after taking occupation. Ecclesiate are at all times mindful of the risk which every property owner has and continually strive to operate in away that is both fair to our owners and tenants and continually look for the fairest, most expedient and economical way to manage the arrears as best  possible.