Rent arrears are rising thanks to the perfect storm of Universal Credit and Covid, but most housing management systems flag issues once they become a problem rather than helping you reduce or PREVENT arrears before they get out of control.
Although ‘crystal balls’ only exist in fairy tales, predicting the future is possible with the right technology.
Artificial intelligence (AI) can identify the factors leading to long term arrears cases before they happen so that you can tailor your intervention strategy accordingly.
Many housing management systems only flag cases AFTER payments are missed. You then get a list of tenants who have defaulted on their rent so that you can contact them and start the intervention process.
This approach means that you’re addressing the situation after it becomes a problem which is a much more difficult way to resolve it for both the tenant and the organisation.
BUT predicting which tenants may fall into arrears BEFORE payments are missed is the BEST way to prevent the problem before it happens.
It gives you more options for supporting the tenant in a positive way. It’s a much easier conversation - for everyone involved - AND it means you can prevent arrears before they happen.
It’s win-win – for tenants, income team members and the organisation.
It considers several data points such as household, property, rent information, weekly rent account balances, payment history (date, amount, transaction type) and repairs and compliance visits.
This provides an extremely powerful forecast of future arrears.
Imagine having that crystal ball that helps you understand your tenant's likelihood to fall into arrears as far as 6 months ahead and understand the likelihood of this becoming a long-term problem or just a temporary blip.
That means you can create the right intervention strategy and engage with those tenants who need it most. This gives them the exact support they need before it gets out of hand such as explaining how they could claim welfare assistance, point them in the direction of your job referral programme or make referrals to other agencies who can help.
So rather than having your income team chasing after every tenant each time they default, which can be costly, time-consuming, and not exactly a positive experience for all involved, you can pinpoint exactly who needs your support BEFORE it becomes a problem.
Pivigo has developed an intelligent AI system to predict future rent arrears cases. We differentiate the high-risk cases from relatively benign, temporary ones, enabling housing associations to make better use of their resources and mitigate persistent lost revenue.
Our solution delivers these unprecedented insights at under half the cost of other solutions providing a positive return on investment (ROI) within 5 months of implementation and an overall ROI of at least 5x the cost of the service.
This is one of the main areas we address with clients in our Rent Arrears Prediction AI that takes social housing providers from struggling with rent arrears to reducing the number of tenants falling into arrears and increasing rent collection.
We employ the latest artificial intelligence and predictive technology – drawn upon over 8 years of experience and over 300 AI projects - to help housing providers accurately predict rent arrears cases before they happen (3-6 months before); automatically differentiate between long-term and short-term cases and predict tenant behaviour meaning caseloads are greatly reduced as income teams are contacting the right tenants at the right time in the right order helping to drive down arrears.
Contact us below if you’re interested and we’ll arrange for a free demo to see how quickly you can start reducing arrears and increasing rent collection significantly.