Understanding tenants is paramount to effective rent collection strategies. After all, without customer insight, how do you improve communication with tenants and address problematic arrears behaviour? Only with this knowledge can you implement the perfect response, recovering what they owe and helping them meet future rent deadlines.
This doesn’t have to be a strict template either. Approaches can differ from person to person, based on what you’ve discovered. It means you’re able to tailor tenant engagement as much as possible. The result? A collections process that is smart, informed and flexible.
Voicescape Collections gives you the insight to start understanding tenants, and make real progress with available resources. It’s also a huge influence on customer loyalty, because people stay longer if they feel cared for – and listened to.
The objective is fairly straightforward. You need to be aware of what isn’t working right now, so you can segment the behaviour of various groups and profile high-risk tenants. These insights build a model that can be used to predict future behaviour and guide the most useful course of action.
Which tenants, for example, are avoiding your calls to discuss arrears? Do they respond to voice messages or not? What about letters and other reminders? When are they best suited to make payment, with respect to their individual circumstances?
Late rent collection is a problem for all parties. Yet, by understanding each individual, you’ll know how to communicate with tenants, and find a better way to resolve non-payment. It’s then a case of changing their arrears behaviour permanently. The tenant experience stays positive, while you stay profitable.
The Voicescape Collections system gives you these valuable insights in a matter of weeks:
First, debt information is processed and analysed – showing who’s in arrears.
Then, we send automated calls asking the tenant to dial into your arrears team. The system will record if they’ve done so. That’s also true of voicemails we leave on your behalf encouraging callbacks, which explain the importance of resolving payment.
If phone contact is working – and the payment goes through – then you learn something: phone calls are a reliable method for dealing with the same people in the future.
However, if they aren’t responding, you learn something else – you’re ready to explore other methods.
Our rigorous analytics measure the frequency of those who ignore or avoid rent conversations over the phone. After several weeks, you can be sure those insights are reliable and compare results over time. We also suggest using randomised, controlled trials to measure any actions you take.
The addition of a tenant engagement workshop can help to further establish the key drivers in arrears behaviour, in turn helping you to achieve great customer relationships with those already in your social housing community.
The Flagship Group manage more than 30,000 homes in the East of England. They work across 20 local authorities and currently have a £190 million annual turnover. Yet they ran into a challenge with increasing rent arrears.
Thanks to Voicescape Collections, they found which tenant groups were at risk of falling behind on their rent. Combining a workshop and randomised trial subjects, we successfully determined how Flagship could help their tenants.
These conversations brought a lot of information to light. We asked how to maintain sustainable relationships with tenants like them, based on what they themselves would like to see.
The result? A solid set of insights, ready to be fed into officer training programmes so arrears are reduced or prevented.
The more you understand, the faster and better you’ll act. Understanding tenants underpins everything you do when making a change to rent collection strategies. With analysis, testing and evaluation, you’re all set for long-lasting adjustments as well as a positive landlord-tenant relationship. It’s worth getting to know the full scope of our Collections software too…
Want to transform how you manage rent arrears? Get in touch to find out.Contact Us