# Case Study - Rent Arrears Automation for a Property Management Firm | Colossal

Source: https://colossal.nz/case-studies/rent-arrears/

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# Reducing rent arrears by 60% with automated escalation sequences

 Industry Property Management and Real Estate

 Focus Rent arrears, tenant communication, landlord protection

 Service AI Automation - Custom Integration

 60%

 Reduction in outstanding arrears

 Automated

 Full arrears escalation sequence

 Real-time

 Arrears visibility across all properties

 Earlier

 Intervention before arrears compound

## Caught at three days, not three weeks

 A missed payment caught at day three is usually an oversight. A message goes out, the tenant pays, nobody escalates. The same payment caught at day twenty-one has grown into something harder: a tenant who has normalized the delay, a landlord who spotted it in their bank statement before the property manager did, and a situation that is harder to unwind. This firm was consistently catching arrears late. With 200 properties and a small team, daily monitoring of rent payments was not happening. By the time a missed payment appeared on someone's radar, it had already been sitting there for weeks.

## The escalation sequence

 The system monitors payments daily. A missed payment triggers the sequence automatically, not when someone notices.

 **Day 3.** A friendly reminder to the tenant. Assumed oversight. No alarm.

 **Day 7.** A firmer message with the outstanding amount and a clear request to contact the property manager directly.

 **Day 14.** The landlord receives a summary: what is outstanding, what has been sent, and what the next steps are.

 **Day 21.** A formal notice is generated, documented, and sent, ready to support any tribunal process if needed.

 The property manager sees the full picture in a live dashboard and steps in only when a situation calls for their judgment.

## The results

- Outstanding arrears across the portfolio reduced by 60% within three months
- Most missed payments resolved at day 3 or day 7, before escalating further
- Full compliance documentation generated automatically for every arrears case

## Want arrears caught and managed from day one?

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