Needed to move away from paper checks and the administrative work that goes along with them.
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. Connecting consumers to tenants in desirable markets through a diverse portfolio of neighborhood, community, and lifestyle centers.
Kite Realty has removed the pain from its invoice-to-cash process for both its AR team and tenants. By implementing a solution that provides real-time insights, complete account visibility, improved communication, and simple and secure payment options, Kite has been able to reduce the time required to manage collections, solve tenant issues more efficiently, and make better, wholistic decisions. “Everybody’s excited about this because they all want that flexibility,” says David Buell, CAO of Kite Realty. “It feels almost unanimous. Tenants are very excited about this platform because they all want less pain, much better tracking, and another way to communicate with us.”
The Starting Point
Kite Realty had a highly administrative AR process that was unable to keep up with tenant expectations. A third of the AR team’s time was spent dealing with tenant reconciliations and recoveries while the remaining time was spent on traditional collections calls. Because of the costs and efforts required to do so, Kite didn’t send monthly invoices meaning tenants had to call Kite to ask questions about charges or details of their account. While phone calls can be good, they lack a clear audit trail and take more time than necessary to solve simple issues. Roughly 60% of payments were being made via check to one of several lockboxes although tenants were requesting to pay online. More often than not remittance data was either unclear or missing entirely from the payment which resulted in high value time being spent guessing where to apply cash.
With an AR team of 4 people responsible for managing 120+ properties, Kite needed to do more with less. It tried to build an in-house solution but knew there must be a better option out there.
“Versapay is committed to commercial real estate. They understand what we do and that’s important because some other tools tried to put us into what they think the right solution is. VersaPay took the time to really understand us, partner with us and be flexible with what we needed.”
Kite Realty implemented Versapay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, Kite has automated many of the manual accounts receivable tasks, allowing the AR team more flexibility, more time and more opportunities to participate in high-value growth initiatives.
With Versapay ARC’s online tenant portal, Kite is able to provide tenants with monthly invoices as well as 24/7/365 access to their complete account details. If a tenant does have a question, instead of needing to pick up the phone, they can pose their question directly within the ARC platform and Kite can respond via the same manner. Issues are dealt with efficiently and with an easily accessible record of communication.
ARC enables simple and secure online payments so tenants can now pay Kite via their preferred method, including Credit Card and ACH. With the ARC platform, payments must include the appropriate remittance data, taking the guesswork out of Kite’s cash application process.
Kite has improved communication with its tenants, decreased the workload of its AR team, made it easier to access the right information at the right time, and in doing so, made its AR team happier and made its tenants happier.