Delinquency Stages

Delinquency Stages determine how and when the Management Software automates or assigns tasks to a unit that is overdue on rent. It's a great way to reduce your workload and rely on the software to remind you of important actions that need to be taken or even do the work for you! 

This article is intended to instruct you on:

To access your facility’s delinquency stages setting:

  • Click the Settings Tab in the lower left of the screen, denoted by a gear icon.
  • Under the Billing section, click the Delinquency Stages button. The delinquency stages settings screen will appear.

There are two types of delinquency stages: Recurring and Non-Recurring.

Recurring Delinquency Stages 

Recurring delinquency stages are actions that occur every month. For example, if you want to charge a late fee on the 15th day of every billing cycle, you would use a recurring delinquency stage to accomplish this.

Things to know about recurring delinquency stages:

    • The action in the stage is completed every month the tenant is late paying their rent.
    • Actions are assigned to occur on the DAY OF THE SERVICE PERIOD meaning
      • if rent is due on the 1st and the recurring stage is set for the 10th day of the service period, then the action will occur on the 10th day of the month.
      • if rent is due on the 5th and the recurring stage is set for the 10th day of the service period, then the action will occur on the 14th of the month.
      • if rent is due on the 25th and the recurring stage is set for the 10th day of the service period, then the action will occur on the 3rd of the following month if there are 31 days in the current month, the action will occur on the 4th of the following month if there are 30 days in the current month, and the action will occur on the 6th of the following month if there are 28 days in the current month.
    • It is not recommended that you assign actions to occur on the 29th, 30th or 31st. Actions assigned on the 29th, 30th, or 31st day may occur early depending on the number of days in the month. February typically only has 28 days in it. If you assign a recurring delinquency action to occur on the 30th of every month, in February, that action will occur on the 28th since there are not 30 days in February.
    • It is not recommended that you assign a late fee to be applied every day of the billing period. This may cause processes such as move outs and transfers to not work.
    • Do NOT assign actions to occur on a day greater than 31. This will result in those actions occurring on the last day of the billing cycle.
    • Use recurring delinquency stages for these tasks:
      • Add Fee
      • Call Tenant
      • Print Certified Mail
      • Print Mail
      • Send Email
      • Send SMS (text message)
      • Task List Entry
    • Do NOT use recurring delinquency stages for Auction, Cancel Insurance, Cut Lock, Gate Lockout, Lien, Overlock, Schedule Auction, Send Auction Notice, Send Lien Notice.

 

Non-Recurring Delinquency Stages 

Non-Recurring delinquency stages are actions that occur one time after rent goes unpaid. For example, if you want to send a lien notice 45 days after the rent is due, you would use a non-recurring delinquency stage to accomplish this.

Things to know about non-recurring delinquency stages:

    • The action in the stage is completed only once.
    • Actions are assigned to occur on the DAY AFTER DUE DATE meaning
      • if rent is due on the 1st and the non-recurring stage is set for the 10th day after due date, then the action will occur on the 11th day of the month.
      • if rent is due on the 5th and the non-recurring stage is set for the 10th after due date, then the action will occur on the 15th of the month.
      • if rent is due on the 25th and the non-recurring stage is set for the 10th day after due date, then the action will occur on the 4th of the following month if there are 31 days in the current month, the action will occur on the 5th of the following month if there are 30 days in the current month, and the action will occur on the 7th of the following month if there are 28 days in the current month.
    • Actions can be independent of each other or dependent upon each other. An independent action would be one like sending an auction notice 60 days after the rent is due. A dependent action would be one like sending an auction notice 1 day after you've scheduled the unit for auction.
    • For best results, Overlock, Gate Lockout and Cut Lock actions should be setup in their own individual stages and not combined with any other delinquency action.
    • The Delinquency Starts stage cannot be deleted and determines the difference between a past due unit and a delinquent unit. If you have a grace period of 5 days and set the delinquency starts to 5, tenants will be denoted as past due if they don't pay their rent during this time. If they haven't paid their rent by the 6th day, then they will be denoted as delinquent. A past due tenant's name and unit will be in blue throughout storEDGE. A delinquent tenant's name and unit will in red throughout storEDGE. It is not recommended that the Delinquency Starts setting be changed if you have any past due or delinquent tenants in your storEDGE account.
    • 0 day dependent actions will process 30 minutes after the previous action has been completed.

 

Setting Up Delinquency Stages

To create a new delinquency stage:

  • Click + Add new recurring stage or  + Add New Non-Recurring Stage. The New Delinquency Stage screen will appear.

You now have the option to specify the details of the new stage:

  • Description: Use this field to provide a name for the delinquency stage (i.e. First Late Fee and Notice, Overlock, Process Lien, etc.).
  • Recurring: Checking this box will cause the delinquency stage to be recurring. You will be able to specify the day within each billing period that the resulting action will be triggered. This will occur as long as the unit remains delinquent.
  • Applied: The applied setting specifies when a delinquency action will be triggered.
    • Recurring: If the Recurring box is checked, then the applied setting specifies which day in the service period the delinquency action will trigger within each billing period.
    • Non recurring: There are two possible options to apply a non-recurring delinquency stage:
      • If the setting is for days past rent due, the corresponding delinquency actions will trigger once, based on how many days delinquent the unit is.
      • If the setting is for days past previous action, the corresponding delinquency actions will trigger only the set amount of days after the chosen delinquency action has been completed.
  • Resulting Actions: Use this dropdown menu to choose what action will be taken as a result of this delinquency stage being triggered. The available actions are:
    • Add Fee: Select this option to allow the Management Software to automatically charge a fee on the day of the billing cycle you select. You will then need to select the fee to be added from the dropdown menu provided. You cannot use a custom fee in delinquency stages. This is an auto complete task meaning storEDGE will automatically complete this task for you rather than adding it to the task list for you to manually complete.
    • Auction: Select this option to allow the Management Software to notify you via the Task List to to mark the unit as auctioned. 
    • Call Tenant: Select this option to allow the Management Software to notify you via the Task List to call the tenant.
    • Cancel Insurance: Select this option to automatically cancel insurance coverage from the unit's ledger. This is an auto complete task meaning storEDGE will automatically complete this task for you rather than adding it to the task list for you to manually complete.
    • Cut Lock: Select this option to allow the Management Software to notify you via the Task List to cut the lock of a unit. Note: When this stage is completed, tenants will not be able to process a payment or move out via the Rental Center or any 3rd party (kiosk, call center, etc). They will receive a message stating, "You are unable to make a payment in your current delinquent state, please contact the facility for more information."
    • Gate Lockout: Select this option to automatically lock out a tenant from your gate on the day of the billing cycle you select. The Gate Lockout action can only be used if your facility has its gate integrated with storEDGE. This is an auto complete task meaning storEDGE will automatically complete this task for you rather than adding it to the task list for you to manually complete.
    • Lien: Select this option to allow the Management Software to notify you via the Task List to mark the unit as being in lien status. Note: When this stage is completed, tenants will not be able to process a payment or move out via the Rental Center or any 3rd party (kiosk, call center, etc). They will receive a message stating, "You are unable to make a payment in your current delinquent state, please contact the facility for more information."
    • Overlock: Select this option to allow the Management Software to notify you via the Task List to overlock a unit. It is best practice to have the Overlock action in its own delinquency stage. Including it in other stages can cause unexpected results.
    • Print Certified Mail: Select this option to allow the Management Software to notify you via the Task List to mail a certified letter to the tenant. You will need to specify a document/letter using the dropdown menu provided. Selecting the Email tenant checkbox will send an email to any delinquent tenant with a valid email address on file in addition to creating the printed document for you to mail.
    • Print Mail: Select this option to allow the Management Software to notify you via the Task List to mail a printed letter to the tenant. You will need to specify a document/letter using the dropdown menu provided. Selecting the Email tenant checkbox will send an email to any delinquent tenant with a valid email address on file in addition to creating the printed document for you to mail.
    • Schedule Auction: Select this option to allow the Management Software to notify you via the Task List that a unit is ready to be scheduled for an auction. It is best practice to have the Schedule Auction action in its own delinquency stage. See the Auction Manager help article for more information on scheduling auctions. 
    • Send Auction Notice: Select this option to allow the Management Software to notify you via the Task List to send an auction notice. You will need to specify a document/letter using the dropdown menu provided. The Send Auction Notice action should be used when an auction date needs to be included in the auction notice. The document/letter selected for this action must include an auction date replacement field such as  [[delinquency_tenant_event.auction_date.mdy]] or [[delinquency_tenant_event.auction_date.with_time]]. When the Send Auction Notice task appears in your task list, you will be prompted to enter the auction date before the notice will be generated. If you are using the Auction Manager and have the Send Auction Notice action dependent upon the Schedule Auction action, the auction date will be automatically filled in and the notice will be automatically generated when the unit is added to a scheduled auction. Selecting the Email tenant checkbox will send an email to any delinquent tenant with a valid email address on file in addition to creating the printed document for you to mail.
    • Send Email: Select this option to allow the Management Software to send a templated email notification to any delinquent tenant with a valid email address on file.
    • Send Insurance Cancellation: Select this option to allow the Management Software to notify you via the Task List to mail an insurance cancellation notice to the tenant. You will need to specify a document/letter using the dropdown menu provided. Selecting the Email tenant checkbox will send an email to any delinquent tenant with a valid email address on file in addition to creating the printed document for you to mail.
    • Send Lien Notice: Select this option to allow the Management Software to notify you via the Task List to send a lien notice. You will need to specify a document/letter using the dropdown menu provided. The Send Lien Notice action should be used when a lien date needs to be included in the notice. The document/letter selected for this action must include a lien date replacement field such as [[delinquency_tenant_event.lien_date.mdy]] or [[delinquency_tenant_event.lien_date.long]]. When the Send Lien Notice task appears in your task list, you will be prompted to enter the lien date before the notice will be generated. Selecting the Email tenant checkbox will send an email to any delinquent tenant with a valid email address on file in addition to creating the printed document for you to mail.
    • Send Pre Lien Notice: Select this option to allow the Management Software to notify you via the Task List to send a pre lien notice. You will need to specify a document/letter using the dropdown menu provided. The Send Pre Lien Notice action should be used when a lien date needs to be included in the notice that is dependent on when the pre lien was sent. The document/letter selected for this action must include a lien date replacement field such as [[delinquency_tenant_event.lien_dependent_prelien_date.mdy]] or [[delinquency_tenant_event.lien_dependent_prelien_date.long]]. When the Send Pre Lien Notice task appears in your task list, the system will populate the lien date in the notice based on the number of days between your Send Pre Lien Notice stage and your Send Lien Notice stage as long as the Send Lien Notice stage is dependent on the Send Pre Lien Notice stage. The lien_dependent_prelien_date will exclude Sundays, Holidays and Observed Holidays (US and CA only) when these days fall on the start date of the time frame. (Note: When using the lien_dependent_prelien_date the Send Lien Notice stage needs to be set as Action Post Marked.)
      Selecting the Email tenant checkbox will send an email to any delinquent tenant with a valid email address on file in addition to creating the printed document for you to mail.
    • Send SMS: Select this option to allow the Management Software to automatically send a templated SMS (text) message to any delinquent tenant with a valid mobile phone number on file. This is an auto complete task meaning storEDGE will automatically complete this task for you rather than adding it to the task list for you to manually complete. Automated SMS messages are sent at 8 am local time on the day of the billing cycle you select.
    • Task List Entry: Select this option to allow the Management Software to notify you via the Task List to complete a delinquency action outside of storEDGE. The description of the task you enter will be the description that displays on the Task List and in the tenant's account history. Use this task for reminders such as creating a newspaper ad.

Note: In most resulting actions, you can check the box beside Email tenant. This will send an email to the tenant when that delinquency stage has been completed. For delinquency stages with documents attached to them, the document will also be sent with the email.

  • Click the Save button to save your new delinquency stage.

Advanced Delinquency Stage Settings

storEDGE's standard delinquency policy is that a unit must have its rent balance paid down to $0.00 before it can exit delinquency and any amount of unpaid rent can start delinquency actions on a unit. This means that partial payments typically do not prevent or reset delinquency stages. You can change that by selecting the Advanced Settings tab. Here you a few options to alter the standard delinquency policy. 

If you want units with small balances to not go into delinquency check the box and enter an amount here:

If you want to stop delinquency when a unit's balance is within a certain amount, check the box and enter that amount here:

If you want to have a unit roll back in delinquency to a particular delinquency stage when a partial payment is made, check the box below and select the stage from the dropdown list.

When a tenant's check bounces or a payment is reversed in any way, the system will automatically set the unit to the point in delinquency that the unit would have been in if they payment had never been taken. If you would like to limit how far into delinquency the unit can go when a payment is reversed, check the box below and select the delinquency stage.

 

If you’ve set your Advanced Delinquency Settings to roll forward in the event of an NSF or reversed payment for delinquent tenants, you’ll notice several events will be triggered by the NSF payment.

First, when you reverse a payment, you’ll receive a warning message that informs you that delinquency processes will occur within the next 10 minutes.

warning_reversed_payment.png

Next, you’ll notice that the NSF will appear on the tenant’s history page and the payment that was reversed will now be labeled as VOID. Over the next 10 minutes, the tenant’s account with cycle through all delinquency stages up to the stage they had triggered before their NSF payment. For example, if your tenant was at the auction stage of delinquency, they will cycle through every delinquency stage leading up to the auction stage again. This also means that any emails or print documents associated with these delinquency stages will be sent or generated. If you are using Mail House to send delinquency documents, they will be triggered to be sent again by the system, and your facility will be charged for this mail. Additionally, any fees associated with the delinquency stages will be charged to the tenant.

 

Editing and Deleting Delinquency Stages

Editing or deleting delinquency stages should be done rarely and with care. If you don't have any units in delinquency, you can make any changes you'd like to delinquency stages without worry. But if you have units already in delinquency, the changes you make to your delinquency stages could adversely affect them.

Editing Recurring Delinquency Stages

If you change the actions in a recurring delinquency stage, the next time that stage runs, the new actions will be triggered.

If you increase the applied on day in a recurring delinquency stage that has already processed for a unit, it will not change anything for that unit. The change will only affect new units entering delinquency after you've made the change or units who are currently in delinquency but haven't reached this stage yet.

If you decrease the applied on day in a recurring delinquency stage that has already processed for a unit, it will not change anything for that unit. The change will only affect new units entering delinquency after you've made the change or units who are currently in delinquency but haven't reached this stage yet.

If you delete a recurring delinquency stage, the stage will never run again.

If you add a new recurring delinquency stage, that stage will be applied to all units who become delinquent in the future and any units who are currently delinquent. If existing units' delinquency time has exceeded the number of days set in this new stage, the new stage will be applied the day after the new stage is created and then once for every future billing cycle.

Editing Non-Recurring Delinquency Stages

If you change the actions in a non-recurring delinquency stage that has already processed for a unit, it will not change anything for that unit. The change will only affect new units entering delinquency after you've made the change or units who are currently in delinquency but haven't reached this stage yet.

If you increase the applied on day in a non-recurring delinquency stage that has already processed for a unit, it will not change anything for that unit. The change will only affect new units entering delinquency after you've made the change or units who are currently in delinquency but haven't reached this stage yet.

If you decrease the applied on day in a non-recurring delinquency stage that has already processed for a unit, it will not change anything for that unit. The change will only affect new units entering delinquency after you've made the change or units who are currently in delinquency but haven't reached this stage yet.

If you delete a non-recurring delinquency stage that has already processed for a unit, it will not change anything for that unit. The change will only affect new units entering delinquency after you've made the change or units who are currently in delinquency but haven't reached this stage yet.

If you add a new recurring delinquency stage, that stage will be applied to all units who become delinquent in the future and any units who are currently delinquent. If existing units' delinquency time has exceeded the number of days set in this new stage, the new stage will be applied the day after the new stage is created.

 

Notes:

  1. Only one set of delinquency stages is allowed per facility.
  2. Delinquency is applied on a per unit basis - not a per tenant basis.
  3. To completely exclude a tenant from delinquency, classify the tenant as Delinquency Exempt in their tenant profile. Marking a tenant as Delinquency Exempt after they have already started delinquency will not stop the delinquency process.
  4. Setting a recurring delinquency stage fee and a one-time delinquency stage notice to process on the same day may result in the fee not being included in the total balance due on the notice.

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