You don’t have unlimited time, resources or manpower. So it’s vital to identify customers at risk early on in the arrears process. Soon enough, you’ll develop rent collection strategies that intervene in the right way at the right time – protecting your tenancies and rental income.
Profiling the financial and social risk of individual tenancies is key to reliable risk management. If you know what they owe, when they last paid and which challenges they may have run into, you can modify the collections process and learn from the results.
With Voicescape Collections, we’ve made sure it’s simple to identify customers at risk before the most critical cases get out of hand.
Segmenting current data will identify who’s in arrears and who isn’t. But that’s just the beginning. Effective risk management relies on individually profiling tenants by variables such as age, employment, number of children or access to Universal Credit.
Only by painting a fuller picture can you truly understand why they may have fallen into arrears, and prescribe the appropriate action. It’s important to never assume that someone is high-risk simply because, for the very first time, they’re late by a day or two. Stepping in too early can damage the customer relationship. Meanwhile, you can’t assume that what works for one tenant will work for another.
To streamline rent collections, you must track your existing procedures to measure the effectiveness of calls, texts, emails and letters on a case-by-case basis. You can lower the risk of non-payment by adapting how and when you get in touch to resolve arrears.
With Voicescape Collections, you’ll have an easy path to find those in your community who require the most help using:
Current debt information – simply add this to the system.
Any other details you have on your tenants – relevant to their earnings, income support or age and relationship status. It assists our diagnostic and monitoring tools that determine risk.
The results of our automated calls – we’ll track every attempted contact, whether they answered or not and what actions they took if they did.
Data relating to those tenants who have repeatedly missed payments and failed to engage. This suggests they can’t or won’t resolve anything on the phone. If you stick with calls, they’re likely to avoid repaying what they owe or paying new rent on time.
With this information, you’ll gain an understanding of what to do next for those who need the most support and have the biggest impact on revenue. Rent collection strategies can therefore be improved incrementally, assessing the risk as it falls or rises.
And, with randomised controlled trial groups [LINK > Randomised Controlled Trials], you’ll have a broader perspective on what the most effective approach to arrears collections is for high-risk tenants across your agency.
Some of our clients have been early adopters of risk profiling and continue to feel the impact of smarter, predictive insight.
The Pobl Group, an agency in North Wales with over 16,000 homes to manage, wanted to help with rent arrears on Universal Credit. As a growing concern, intervention had to happen earlier, and needed to be tailored to appreciate the stress and challenges of this payment scheme.
By profiling tens of thousands of residents and identifying customers who needed help, the client was able to grade the financial and social risk on a case-by-case basis. The result? Far better resource management, tackling high-risk and lowering it before moving to other tenants.
Ideas for streamlining rent collections are all well and good, but they require direction, context and priority. We want to help you make the most of the resources you have. Risk profiles are an essential part of how to make rent collection easier. Over time, you’ll learn from every good move, applying similar tactics for similar people in high-risk groups. It doesn’t end there, though. Voicescape Collections has even more to share for behavioural insight…
Want to transform how you manage rent arrears? Get in touch to find out.