Pssst… here’s the secret sauce to slashing arrears by 65%
03 December 2021
While collecting rent is a critical part of any property manager’s job, chasing overdue payments is a time-consuming, stressful, and thankless task.
Property managers spend hours each week managing the ripple effect of overdue payments.
From chasing shortfalls, managing renter invoices, and checking the trust continuously to see when the overdue payment actually comes in, to communicating with distraught landlords, it’s no small task. Not to mention the mental load! And this is time that could otherwise be spent building real connections with clients.
To address this, great property managers not only have rigorous screening processes to find reliable renters in the first place, they also invest in smarter, customisable workflows, better communication tools, and innovative technology to help keep arrears in check.
“Ailo is the most remarkable evolution I’ve seen in arrears management technology in 20 years.”
— Juliette Hughes, PM Advisory & Pre-Implementation Specialist (aka our Property Manager in Residence) and Apex Property Management Licensee.
How does it work? Well, digging into our data, it comes down to a few key principles in how we’ve designed Ailo and learnings from how our clients are using it:
1. Give renters more control & better visibility
With Ailo, renters get more payment options and can choose to pay by debit card, bank account, or even credit card if cash is tight one month. There’s also the handy set-and-forget autopay option.
Did you know that 78% of consumers say real-time access to financial information is extremely/very important? It’s a significant stat, and one agencies must take into account. With Ailo, renters have real-time access to all their payment information right in the palm of their hand, so they always know when their next rent payment is due.
2. Never underestimate proactive, automated & friendly reminders
These days, most of us live our lives by notifications. Bills, appointments, and social media all sound the little beeps that keep us organised.
If a renter doesn't have autopay set up, Ailo sends a friendly notification to a renter’s smartphone the day before rent is due – and then the day it's due and the day after. Our clients have found friendly, proactive reminders actually work wonders when it comes to keeping rent payments coming in on time.
At Ray White Batemans Bay the team hours chasing arrears weekly. “We actually didn’t realise how much time we were putting into chasing arrears until we started using Ailo,” said Catherine Wells, Senior Property Manager.
Similarly, Hype Realty’s arrears were at about 11 per cent before Ailo. “Since we started using Ailo, it’s at zero. We barely think about arrears now!” said Mel Morey, Principal at Hype.
3. Give property managers even more visibility into payments
More visibility means more control. Ailo gives property managers and investors the ability to see exactly when payments have been made, when payments are being processed, and when they’ve cleared.
That means property managers can see as soon as a renter pays rent, giving them the power to get on top of delays faster, rather than giving the usual buffer of 2-3 business days in case funds are still clearing through the banking system. Ailo also gives property managers visibility of the renter’s chosen payment methods and schedule.