The cost-of-living crisis is straining household budgets across the UK, with a growing number of tenants feeling the pinch. A Guardian article (May 2023) reported that nearly 700,000 households couldn't cover their rent or mortgage obligations in the previous month. Additionally, 36% of landlords faced rent arrears within the past year.
While landlords face financial burdens from missed rent payments, impacting their ability to meet mortgage payments, maintain properties, and fulfil their financial commitments, letting agents aren't immune. Uncollected rent translates directly to lost income for your property agency. This disrupts your ability to effectively serve landlords and maintain a healthy cash flow.
Stop Chasing Payments, Start Automating Prevention
The good news is that automation is your secret weapon against rent arrears. With the launch of our fifth-generation software, Veco Plus, we’ve updated our most loved and trusted platform, 'AutoMate', to help agencies of all sizes manage every repetitive business process effectively. Our updated feature, ‘Automate Plus’, empowers letting agents to navigate rent arrears by automating rent collection, tracking payments, chasing any outstanding rent, and maintaining clear financial records for effortless compliance.
Instead of reacting to missed payments, letting agents can use automation during the pre-tenancy process to:
Complete Tenant Referencing: Automating links to drive self-serve data entry to minimise the manual effort of tenant referencing. This helps letting agents identify reliable tenants upfront, minimising the risk of late payments.
Pre-Built Workflows: Deliver a consistent and compliant experience for your applicants, leaving no room for confusion or risk of data inconsistencies from manual intervention.
Payment Gateway: Ensure that all initial monies are collected quickly and efficiently through a trusted payment gateway provider. Include this in your applicant-to-tenant journey and automate requests and reminders.
Automated Late Payment Communication (with a Human Touch)
Even with automation, some rent arrears will happen during a live tenancy. Veco Plus helps letting agents cover all the bases before legal action is required:
Automated Rent Reminders: Set up gentle nudges in the form of text messages or emails before and after rent due dates. It's possible their late payment is a simple mistake or technical issue, and timely reminders can prevent delays before they escalate.
Bespoke Automation: Implement your own business processes and protocol, whilst using your terminology and preferred language to communicate the arrears position, status and potential next steps. That personal touch will feel less robotic and less likely to be ignored.
Veco Plus: Your Partner in Preventing Arrears
In a difficult economic climate, working together is essential. By leveraging Automate Plus, letting agents can empower themselves to achieve win-win outcomes for everyone involved. Landlords benefit from secure and timely rent payments, tenants receive efficient support, and letting agencies streamline workflows and protect their income.
While Veco Plus offers valuable resources for managing rent arrears, complex legal situations may require professional advice from a solicitor. We recommend seeking legal counsel when necessary. By working together proactively, letting agents can ensure a stable rental market even during the cost-of-living crisis.
For more information, contact our team at contact@veco.software or call us on +44 1372 389 250.
