Providing Tenants with 100% Transparency at One of the Largest Retail Landlords in the US
A large retail landlord has dramatically changed its tenant relations. By implementing a solution that allows tenants to access their accounts and make payments 24/7/365, it has significantly improved its collections ratio, decreased its receivables and provided tenants with 100% transparency into their accounts.
By automating many of its accounts receivable tasks, this CRE company was able to eliminate misapplied payments, resolve disputes faster and auto-reconcile 100% of online payments. With almost 70% of tenants adopting this new platform, it is saving time, saving money and making tenants happier.
THE STARTING POINT
The company’s AR process was highly manual. The collections team faced challenges associated to: lost and delayed checks, misallocations, short payments with no explanation, and time-consuming check by phone processes. Payments were primarily made with checks sent via a lockbox or regular mail. When remittance information was not clearly written on each tenant’s check, identifying and applying payments was based on the AR team’s “best judgment”. Across a portfolio of more than 10K tenants, spanning a range of sophistication from large public companies to mom and pop shops, errors were common.
The company had a transparency problem. Billings were lease-driven with multiple variables changing each month yet it did not send out statements, leaving tenants with no visibility over their accounts. The CRE organization had to contact tenants directly when additional non-recurring charges were posted, for example, new account and tax reconciliations or trash and utility billings. Tenants were demanding a better user interface with 100% transparency.
With an error-prone, inefficient AR process and a lack of tenant transparency, this landlord had to find a better way.
The retail landlord implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, many of the manual tasks that caused inefficiencies in the AR process have been eliminated. Cash application and account reconciliation is now done automatically. Lost payments are a thing of the past with electronic payments and, as tenants are required to insert a comment for any item not paid in full, disputes are resolved faster.
Tenants now have complete transparency into their accounts via the easy-to-use tenant portal. They can see billings as they are posted, view and make payments anytime, from anywhere with just one click.
By offering a more convenient and transparent experience for its tenants coupled with vast improvements in the end-to-end AR process, this CRE organization has been able to decrease receivables while improving tenant relations.
Industry: Commercial Real Estate
Invoices per month:15,000+
ERP: JD Edwards
Identified core challenges and areas of inefficiencies as tenants were demanding greater transparency and convenience.
Needed a solution that would automate and simplify their AR and enhance the landlord-tenant relations.
Selected VersaPay due to its ability to meet all requirements at scale.
Took it slow. Deploying 1-3 shopping centers per month initially and increasing that number when the system had been perfected.
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