A study by QuantSpark, a data science company, has found that Mobysoft’s RentSense helps to reduce social landlords’ evictions by 37.8%, arrears by 1.6 percentage points and tenants in arrears by 11.5%.
In what is believed to be the most extensive study of its kind, examining over 1.1 million social tenancies owned by RentSense users and 2 million tenancies owned by non-RentSense users to evaluate the impact of the software in a number of different areas including evictions due to rent arrears, numbers of tenants in debt and rent arrears.
The study into evictions found that social landlords using RentSense (in 2018) had an eviction rate due to arrears of 3.92 per 1,000 properties, whereas non-RentSense users’ eviction rate was 4.27. Further research by QuantSpark looking at a three-year period, from 2015-2018, found that RentSense users reduced their evictions (due to arrears) by 37.8% compared to 13.3% of non-RentSense users.
The research analysed both total current tenants’ arrears and non-Universal Credit (non-UC) arrears. On average, the impact of RentSense on non-UC arrears is to reduce them by 0.8 of a percentage point in year one and by 1.6 percentage points in the first twenty four months, which is the equivalent of 29.6% reduction. Across the dataset analysed this was equivalent to £600,000 per 10,000 properties over two years.
When analysing total current tenants’ arrears (which includes Universal Credit and non-Universal Credit tenancies) RentSense again delivers a substantial reduction, this time 0.3 of a percentage point in year one, and 0.6 of a percentage point in the first two years, which is the equivalent 11.54% reduction despite Universal Credit.
“From a strategic point of view, despite the fiscal environment and welfare reform Sovereign’s arrears have fallen year on year for five years and RentSense has been instrumental in helping us achieve that. It has also created efficiencies and capacity within Sovereign, so we are able to tackle welfare reform.” Luke Bingham, Regional Director, Sovereign.
The study also found that social landlords using RentSense reduced the number of tenants in arrears by 7 percentage points over the first two years of use, which was the equivalent of 11.5%, after which the number stabilised and remained the same, helping landlords reduce the number of tenants in debt.
“This independent study by QuantSpark has highlighted how RentSense enables landlords to offer more timely support to their tenants which has a positive impact on evictions, arrears as well helping customers out of debt.” Paul Evans, Commercial Director, Mobysoft.
“We invested in RentSense instead of additional resource and our arrears have reduced year on year whilst the risks and challenges have increased throughout. The risk has been higher, the resource has been static and yet arrears have come down, that is because of how we have targeted our resource, and that comes down to RentSense,” Jan Goode, Neighbourhoods Director, South Staffordshire Housing Association.
“QuantSpark carried out a detailed and comprehensive quantitative study of all Mobysoft’s historical customers to understand the effectiveness of RentSense in reducing arrears and its wider impact on social landlords. Through this analysis we can confidently say that the RentSense system has significantly supported social landlords in reducing the value of arrears by helping them effectively anticipate and manage tenant behaviour as well helping in other areas such as reducing the numbers of tenants in debt and evictions due to arrears.” Commented Adam Hadley, CEO, QuantSpark.
For a full copy of the report please contact Adrian Mills by emailing email@example.com.