David Banks, the CEO of Barclay MIS Protect & Collect, recounts how last year he received a call from the owner of an investment property here in Western Australia. She rang enquiring about promotion material she had received from Barclay regarding the $55.00 subscription for the no-cost debt recovery service.
She asked David what it involved. David explained that, amongst a host of other services, the subscription entitled a landlord to a no-cost debt recovery service if a debt arose as a result of a residential tenancy during the period of subscription. The enquirer pursued the matter further asking what in fact ‘no-cost’ meant.
David explained that it meant exactly that – no cost to a landlord for the debt recovery service. That is, no outlays for court filing fees, sheriff’s fees, attendance fees at court and no commission taken for any money collected on behalf of the landlord. The only cost to the landlord was the initial subscription of $55.00.
The enquirer immediately jumped in and said ‘I have spoken to my solicitor and he said you can’t do it for $55.00. My solicitor told me that it would cost me between $3000 and $5000 for him to pursue a debt from a tenant.’
Well, that is probably the case if you use a solicitor to recover a residential tenancy debt.
However, we at Rentwest have been using the Barclay service for a large number of our landlords since early 2014 and can attest that what they say is what you get. If a debt does arise, they will pursue the tenant and take whatever enforcement action is necessary through the Magistrates Court and the landlord is not required to pay anything further. All costs associated with the enforcement are borne by Barclay – court filing fees, sheriff’s fees and agents fees for service and court attendance. It is then up to Barclay to recover these costs from the tenant.
And more importantly, 100% of whatever Barclay recovers from the tenant is passed on to the landlord – no deductions or commission.
Even if you have landlord insurance (which we recommend), Barclay is a useful addition. As many landlords would be aware, invariably insurance does not cover you for your total loss from a tenant by the time exclusions and excesses are taken into account. Barclay then step in and will recover for you these losses – again at no further cost to you other than your initial $55.00 subscription.
As an added bonus we have successfully utilised Barclay for the recovery of outstanding water usage charges (always a problem with tenants) without having to go to Court.
We strongly recommend that a landlord has the $55.00 subscription in place. For more information or to sign up with Barclays MIS contact your Property Management Team at Rentwest Solutions.