A Time for Change
Adactus, part of Jigsaw Homes Group, had a traditional approach to collecting rent arrears, which relied heavily on staff. However, not all tenants falling into arrears were contacted, which was bad news for tenants as early help is essential. It was also bad news for rent collection.
“Notwithstanding any tenant’s obligation to pay their rent, we have a duty to them as landlords to help prevent the build-up of arrears, which can only serve to add to their overall level of indebtedness. It is also a part of our mandate as a charitable trust to create a surplus and then reinvest that into the building of more affordable housing. Collecting the rent is part of that process.” Paul Lees, Adactus Chief Executive.
Using technology to contact tenants
Within weeks the Adactus were using Voicescape technology to contact every tenant in arrears daily. What impressed Adactus, which manages more than 13,000 homes across 25 local authorities in the North West of England, was how Voicescape used their experience in other sectors to provide them with a gentle but insightful advice on the most effective approaches to engaging tenants with their type of technology.
“We had to tackle this issue head-on.” said Kimberley Clarke, Adactus Director of Finance. “Voicescape did this in such as a way they we had a very positive response from tenants in terms of rent collection and not one tenant complained about being asked for money. It was amazing.” said Kimberly. Many Landlords have spent thousands to recoup less but we have actually improved rent collection while saving over £100,000 a year from the whole automation of the arrears process which has been invested in community and new build projects, all of which have been received well by tenants”
“Tenant engagement is now at an all-time high,” said Kimberley. “And many recognise the need to tackle their debt before it escalates into something unmanageable.”
- Weekly collection conversations with tenants increase by 300%
- Payment arrangement increase by 66%
- Savings on postal costs of 40%
- Agreement values reduced by an average of 24%
- £100,000 saved per annum on internal resource costs
- 5 full time positions redeployed or reinvested
- 0 tenant complaints