Empathy has been the buzzword within the collection space for a while now. Regardless of the type of debt being collected, doing so in a manner in which consumers are treated professionally and courteously has become the norm. The COVID-19 pandemic has only increased the importance of empathy in collections, especially when collecting rent. This was one of the key messages that Kelly Parsons-O’Brien, the President of Pacific Credit Services shared in a recent article that was published in *rent* magazine, the official publication of the American Apartment Owners Association.

Understanding the situation that a tenant may be in can go a long way toward developing a collection strategy that works for both landlords and tenants. Showing a tenant that you care about them will go a long way toward fostering a connection and increasing the likelihood that the tenant will be willing to collaborate and work toward a solution, Parsons-O’Brien writes.

At the end of the day, she notes, the landlord and the tenant are on the same team. It is in both their best interests to find a solution to repay the debt. The landlord recovers the money he or she is owed and the tenant avoids potentially unpleasant situations like negative items on a credit report or a lawsuit.

An important way to convey empathy — and to get the information that you need to determine the tenant’s willingness and ability to repay the debt — is to ask the right questions and really listen to the tenant’s responses. “An open-ended question is a great way to signal your interest in the tenant’s response and it helps encourage the tenant to inform you of what likely may be occurring,” Parsons-O’Brien writes. Examples of open-ended questions are:

  • “How short of the full rental payment are you?”
  • “How may I help you?”
  • “What does your financial situation look like in the next week/month?”

Asking these types of questions and having these types of conversations may be uncomfortable, but they are a necessary component of an effective collection strategy.

Whatever the tenant tells you, be sure to document everything. All of your interactions should be documented in case you ever need to prove what you did and to hold tenants accountable for what they say. If it is documented, then the chances of a “he said, she said” situation are greatly reduced.

Click here to read all of Kelly’s article. It is helpful to both tenants and landlords alike.