Bad Debt Recovery Rate Calculator

Once rent is written off, some portion may still be collected via skip-trace, collections agencies, or settlements. This calculator measures recovery rate for benchmarking.

Total write-offs (annual)

Amount recovered

Collection cost

Gross recovery rate

25.00%

Net recovered (after cost)

$31,500

Net recovery rate

17.50%

How the math works

Recovery rate = amount recovered ÷ total write-offs. Factor in agency fees or legal costs to get net recovery.

Best-in-class operators run a quarterly collections review to reshop agencies, settle aged accounts, and write off uncollectible balances. Disciplined operators recover 25-40% on current-year write-offs.

How to Use

Enter total write-offs.
Enter amount eventually recovered.
Enter collection cost (agency fee).
Read recovery rate and net recovery.

Frequently Asked Questions

What's typical recovery?

In-house collections: 15-30% of write-offs. Third-party agency: 20-40% gross (often 35-50% contingent fee). Legal judgments: 30-50% in theory, 10-20% actual. Aged over 2 years: under 5%.

When to send to collections?

30-60 days past tenant vacate. Sooner = higher recovery, but respect cure periods. Use reputable agency familiar with tenant-landlord law and FDCPA.

Does it affect credit?

Yes — tenant judgments and agency accounts hit credit reports. Often the credit damage motivates payment once tenant tries to rent again or apply for credit.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.