In the ever-evolving landscape of social housing, the efficient management of financial resources is crucial for maintaining sustainable and thriving communities. One of the challenges faced by social landlords is the collection of Former Tenant Arrears (FTA), which demands a strategic and technology-driven approach. All too often, FTA is a poor relation to the well-resourced and prioritised Current Tenant Arrears (CTA) and left to age with limited focus on collection.
It is very easy to understand why this should be the case, not only is CTA the primary focus of an Income function – it’s also easier to collect. From Voicescape’s work with over 70 UK registered providers, data shows that it takes on average 3 attempts to have a meaningful conversation with a current tenant. This number jumps significantly to 9 attempts with a former tenant, officers will often give up before getting anywhere near the 9 attempts needed to get through to a former tenant.
In this blog, we explore the game-changing power of intelligent automation in revolutionising the process of collecting FTA, providing social landlords with the tools they need to navigate this complex terrain.
Understanding the Challenge: Former Tenant Arrears
Former Tenant Arrears pose a significant challenge for social landlords due to the complexities of tracking down past tenants, ensuring payment, and preventing financial losses while adhering to legal and ethical obligations. Traditional methods of arrears collection often involve labour-intensive processes, leading to delays, inefficiencies, and increased costs. Intelligent automation steps in as a powerful ally, streamlining operations and optimising the entire collection process.
Automation does not mean a loss of personal touch. In fact, it enhances it. Through intelligent automation, social landlords can implement personalised communication strategies, reaching out to former tenants in a targeted and empathetic manner. Automated communication tools can do the heavy lifting, connecting officers with former tenants seamlessly with huge efficiency gains fostering a positive relationship and increasing the likelihood of successful debt recovery.
By automating repetitive and time-consuming tasks, social landlords can optimise resource allocation and reduce operational costs. Intelligent automation allows housing professionals to focus on high-value tasks that require human intervention, such as negotiating complex payment plans or providing personalised support to tenants in financial distress.
Embracing intelligent automation in the context of arrears collection is not just a short-term solution; it's an investment in the future of social housing. By leveraging the cutting-edge technology, now available and developed specifically for social housing, landlords can adapt to evolving challenges, ensure financial sustainability, and enhance the overall well-being of communities.
The power of intelligent automation in the collection of Former Tenant Arrears cannot be overstated. Social landlords who embrace these technological advancements stand to benefit from increased efficiency, personalised interactions, and improved financial outcomes.
As the social housing landscape continues to evolve, intelligent automation emerges as a transformative force, empowering landlords to navigate the complexities of arrears collection with confidence and compassion.