What were the main income challenges Longhurst Group faced in 2023-24, and how did you respond to these challenges?

The biggest challenge has been the cost of living crisis, compounded by the aftermath of COVID-19. Many of our customers have faced turbulent times, and while some use this as an excuse, others are genuinely struggling. This has affected our staff too, as they navigate their own financial difficulties while supporting customers who are often experiencing such issues for the first time. We’ve also seen a rise in customers with vulnerabilities, exacerbated by longer waiting lists and the nature of those referred by local authorities. The unexpected increase in arrears from long-term tenants has been particularly surprising.

To respond, we’ve focused on having better quality conversations tailored to the individual needs of our customers. This involves thorough desktop analysis before contacting customers to understand their history and situation. Our approach is empathetic and prompt, aiming for sustainable payment plans rather than immediate full payments. We also refer customers to our in-house Money Advice team or other organisations to prevent further arrears.

How has the cost of living crisis and other factors impacted your approach to income recovery?

The cost of living crisis has significantly increased the number of customers facing financial difficulties. Additionally, we’ve seen a rise in mental health issues, possibly linked to COVID-19 and economic pressures. Repair issues have also affected some customers. We’re encountering more cases where customers consider extreme measures, like applying for DRO, which breaches our tenancy agreements. Our focus has been on ensuring customers understand the implications of their decisions and maintaining a supportive dialogue.

You mentioned having more quality conversations with customers. How does RentSense assist in managing the increased workload and ensuring these conversations are effective?

RentSense has been crucial in prioritising cases and managing the caseload effectively. Pre-COVID, we could typically complete all RentSense cases by Thursday afternoon. Now, the volume and complexity of cases have increased, making it challenging to get through them all. RentSense helps us identify priority cases and ensures no cases are overlooked. This prioritisation allows our team to have more meaningful conversations aimed at long-term resolutions, reducing the need for repetitive follow-ups.

Can you elaborate on your operating model and how RentSense has integrated into your income recovery process?

Our team comprises around 31 full-time equivalents, split into specialised sub-teams. We have a core group of income recovery advisors handling incoming calls and lower-level cases, while another team manages court work and complex arrears. Additionally, we have an early intervention team focusing on new tenancies for the first six weeks to ensure they start smoothly and avoid future issues.

RentSense has enhanced our ability to identify and prioritise cases, especially new ones. This early intervention helps us manage tenancies proactively, ensuring any potential issues are addressed promptly.

How has RentSense impacted your overall arrears performance and other key metrics?

Despite the challenges, we’ve seen significant improvements. For the financial year ending March 2024, we set a target of 2.1% of the rent roll for arrears and achieved 1.54%. This success, even amidst a cost of living crisis, is partly due to the government’s assistance payments, which we closely monitored to ensure timely rent payments. Our improved performance demonstrates the effectiveness of our proactive approach and the critical role RentSense plays in it.

Beyond reducing arrears, have there been other notable benefits, such as in tenant or staff well-being and satisfaction?

RentSense has helped prevent staff from feeling overwhelmed by the increasing caseload. It provides a structured approach to prioritise and manage tasks, which is vital given the complexity of cases. This structured approach contributes to high customer satisfaction, with recent surveys showing a 93% satisfaction rate. This reflects well on our staff, who feel empowered to assist customers effectively, and on our customers, who appreciate our empathetic and proactive engagement.

How has the support from Mobysoft, particularly from our income maximisation directors, contributed to your success with RentSense?

The support from Mobysoft’s income maximisation directors has been invaluable. Liza Crowther’s training sessions re-energised our team, reinforcing effective practices and boosting morale. Nick Beasley’s establishment of a support group for organisations using the Former Tenant Arrears Essentials module has fostered a collaborative learning environment. This ongoing support ensures we can adapt and optimise our use of RentSense continually.

Finally, can you share your future goals and how you plan to achieve them with RentSense?

Our goal is to further reduce FTA, ideally to 0.5%. We have a target of 1.00% and following the introduction of the FTA Essentials module last year that enabled us to achieve 0.79% (whereas the year before it had been above the target). Since then we have further improved and are aiming for 0.5% at the end of this year.

Thank you, Melanie, for sharing your insights and experiences. It’s clear that Longhurst Group’s strategic use of RentSense has had a significant positive impact.

Thank you. It’s been a collaborative effort, and we look forward to continuing this successful partnership with Mobysoft.