Skip Cost Per Recovery Calculator

Tenant skips have specific recovery costs. This calculator sizes economics.

Outstanding balance

Skip trace cost

Collection fee %

Recovery rate %

Net recovery

$383

Gross recovery

$847

Net recovery %

9.95%

How the math works

Gross = balance × recovery rate. Net = gross − collection fee − skip trace.

Hand skips to agencies within 30-60 days. Agencies take stale accounts at worse contingency percentages (50-60% for 12+ months old vs 30-40% for fresh) because their recovery probability is worse — the timing of the referral is what sets the economics.

How to Use

Enter outstanding balance.
Enter skip trace cost.
Enter collection agency fee %.
Enter expected recovery rate %.
Read net recovery.

Frequently Asked Questions

Skip trace cost?

DIY database search: $20-75. Professional skip trace: $75-250. Private investigator for harder skips: $500-2,000. Most MF portfolios use one of the commercial collection agencies that bundles skip trace into contingency fee.

Recovery rate?

Average 10-25% on skip balances. 30-45% when tenant located and employed. 5-15% on tenants who moved out of state. Older debt (>1 year) falls to 5-10% regardless. Speed is everything.

Reporting to credit?

Credit reporting lifts recovery rate 10-15%. Adds cost $15-50 per tenant reported. Some agencies offer reporting as part of contingency fee. Only report after judgment or documented delinquency per FCRA.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.