How To Collect Real Estate Commissions Fast

If you are in the real estate business and you are owed a commission, you may have had a difficult time collecting your commissions owed. I am not speaking about selling a home and dealing with a title company. I am discussing certain situations when you may have an agreement with an apartment community or private owner. Usually there is written agreement between the two parties but sometimes it can be a hassle.

Unfortunately there are some people who conduct themselves in an unprofessional manner and will force you to make a decision. I have come across several business owners who make it extremely difficult to collect commissions owed. Of course we would like our money that is owed. But one thing we can learn is that we should avoid doing business with companies such as these. You will spend much of your valuable time doing things that are not conducive to running a successful business.

I have put together some techniques and steps that have worked for me in the past. Hopefully they can provide some use for your given situation

If the owner is not responding to your phone calls or voice mail here is what you can do. Leave the owner a message and state that you have an agreement he is not honoring. You are leaving this message as a courtesy. Once again remind him of who you are, why you are calling, and what you want. If you don’t receive the check within 5 business days you will be forced to take action.

This lets the other party know that you are not just going to roll over. You want your commission that is due to you. Whether or not he returns your phone call will be entirely up to him.

If you don't hear from the other party in 5 days you will want to put together a demand  letter.  You will basically be putting in writing what  you stated to the other party over the phone.  Many people believe you should just skip step “A”. However, I believe that a phone call is very easy, doesn’t cost any money, and well, its worth a shot.

You will want to do some research and write a well qualified letter. Some people believe you might want to have an attorney write a letter on your behalf. However, it only takes a few minutes to research and write a well qualified demand letter.

You will want to make sure you send this as a certified letter. Many times you can ask for damages as well. This should get the attention of the other party.