Increasing Collection Rates
Landlords can only drive down arrears by increasing their collection rates. But increasing collection rates in the present environment is tough, especially when Universal Credit means there are more tenants paying rent directly to Registered Providers.
A New Measurement
Some landlords now look at their collection rates rather than arrears levels to see how well their income team is performing. The argument for this measurement is that with arrears it is easier to reduce or ‘manipulate’ performance through bad debt write offs and housing benefit allocation, whereas collection rates tell you how much of your rent you are actually collecting.
More Time Dedicated to Collection
RentSense generates an accurate and manageable caseload for income officers; this in turn gives them more time to engage with tenants each week. It also flags cases in the arrears cycle much earlier, and it is easier to collect smaller amounts of arrears early on than it is larger amounts later in the cycle. This makes improving collection rates easier and more transparent.