How AI is Transforming Social Housing

Blog
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July 20, 2021

Rent arrears soared throughout the latter half of 2020 and with the end of government interventions such as the furlough scheme ending, the rate of arrears is expected to rise to unprecedented levels. This, combined with the inability to know which tenants will pay their rent on time with added unpredictability brought about by Universal Credit creates the perfect storm of income-related challenges.

“Over the past year, arrears have increased – reflecting a number of factors, including the moratorium on enforcing legal proceedings on customers in arrears, introduced as part of the UK’s COVID-19 response.” - Platform Housing Group

Social landlords are already grappling with growing backlogs of maintenance issues and repairs, combined with a myriad of other concerns brought on by the pandemic. As the industry faces a challenging second half of 2021, we ask, what if you knew in advance which tenants are likely or unlikely to pay their rent each month?

The key challenge is understanding who owes them rent, and how much, at a given moment in time. Without insights from the data, housing teams have no choice but to take an indiscriminate approach to chasing arrears. This is where Propensity to Pay AI can help.

Propensity to Pay AI

Our Propensity to Pay AI makes recommendations on which tenants should be contacted in priority order. These insights ensure you contact the right tenants at the right time helping to drive down arrears. It provides actionable insight into propensity to pay rent and also agreements for repayment of long-term arrears.

We do this by analysing tenants’ transactional history, and other related data to make accurate predictions in terms of who will or won’t pay their rent.  These insights ensure you contact the right tenants at the right time helping to increase collection rates and drive down arrears.

Pivigo’s AI gives provides actionable insight into propensity to pay rent and  also agreements for repayment of long-term arrears.  Our AI will also suggest optimal payment plans for long-term arrears cases that have the best likelihood of being kept to.


The Challenges Around AI Adoption?

AI is a complex set of capabilities to adopt without already acquired expertise or internal departments; We’ve witnessed companies trying to do this internally, and getting things up and running can often take months or years before ever running a project and seeing the impact, and in many cases abandoning the attempt.

We’ve seen many organisations understand the need for AI and have the desire to adopt it into their business operations, however, with any new venture it can be difficult to produce optimal results without internal expertise.

We help housing organisations maximise revenues and create much needed efficiencies. The key challenge is understanding who owes them rent, and how much, at a given moment in time. Without insights from the data, housing teams have no choice but to take an indiscriminate approach to chasing arrears.

By adopting Pivigo’s Propensity to pay AI, your organisation can make better use of their resources and mitigate persistent lost revenue. By understanding payment history, we can suggest optimal ‘agreement’ plans that have the highest probability of being kept to. This data-driven approach making ensures your team no longer spend months in dialogue with tenants to reach a sensible conclusion.


Our AI can suggest optimal payment plans for long-term arrears cases that have the best likelihood of being kept to, whilst eliminating benign short-term cases. In addition, our AI Services are compatible with all leading Housing Management Systems, ensuring a seamless integration.

Our dashboard allows your team to see exactly how it is performing, highlighting successful interventions and who needs to be contacted in priority order. Traditionally, Housing Management Systems wait for payments to be missed. We ensure your team are ahead of the curve, reducing caseloads and enabling your team to tackle other areas of concern.


What is Pivigo?


Pivigo is an AI department in the cloud, providing outsourced solutions businesses can plan, scope, build, and execute in weeks, not years. Our AI services are cloud based, which means that resources and involvement of your tech teams is minimal, ensuring a process that is quick and seamless. In short, all you need to get started is your data and our expertise.

We make it possible to build a custom AI solution using our proprietary AI services for social housing, we train the AI using your data and configure to support your requirements

It can then be connected to your housing/tenant management systems and we continually manage the service, ensuring accuracy and performance you can rely on for as long as you require.


How quickly will I see the benefits?

In fact, the answer to that question lies within the data you already have.

Machine Learning and AI gives housing associations the ability to make accurate predictions on which customers will or won’t pay their rent and how caseloads should be prioritised. Without an in-house data team, how can this be implemented and how quickly can you see your ROI?

Typically, it takes just 12 weeks to deploy the model, delivers an ROI inside 5 months, and is typically 5x over the duration of the contract. Our AI Service delivers unprecedented insights to Social Housing at under half the cost of other solutions and is delivered as a monthly subscription through a 24-month contract.

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Contact us today to get in touch and discover what AI can do for your business.

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