Social landlords’ rental income is coming under increased threat, a number of organisations are facing cuts due to the 1% rent reduction and many are struggling with budgets to increase headcount to counter the deployment of Universal Credit. With this in mind Mobysoft has collaborated with some of the sector’s leading income practitioners to compile a guide on how landlords can reduce rent arrears.
“There is real pressure on Housing Associations at present to cut budgets and for some this means income teams are shrinking.” Explained Mobysoft founder and CEO, Derek Steele.
“With Universal Credit coming this will mean landlords will have to start collecting around 65% of their rent directly from tenants. Historically, this was around 35%, with 65% of their rent coming direct from Housing Benefit. So at a time when many need to invest in their income teams they are unable to due to financial constraints.”
This is on top of a worrying recent forecast from Moody’s Public Sector Europe. They predicted that Housing Associations’ rent revenues will fall from 76% in 2014, to 67% in 2017. Again putting further pressure on social landlords to generate and protect revenues.
“This guide is being published at time when income managers and income teams need to share best practice so they can try and drive rent arrears down. Many of Mobysoft’s customers have been focusing on reducing arrears so that they are at historic low levels, so they are prepared for when Universal Credit is deployed.” Explained Steele.
“I would encourage all income managers to download the guide, as it is a practical toolkit that they can work through with their income teams to help improve their collection rates and reduce arrears,” commented Mark Walker, Head of Income at Amicus Horizon, who is one of the contributing organisations.
The guide can be downloaded from the following url: /resources/guides/arrears_guide