Rent Collections the Next Step in Multifamily AI Adaptation

Western Wealth Communities has taken artificial intelligence (AI) to a new level in operations, using a unique system to help collect delinquent rent through human-free interactions.

Its new automated system has saved its onsite teams over 175 hours last month, while improving baseline collections, on average, by 40% across the portfolio of roughly 3,000 apartment homes.

Western Wealth’s technology partner, Colleen, handles over 1,000 conversations with late payers on any given month portfolio-wide. The company began using the platform one year ago.

Jennifer Staciokas, President, Western Wealth Communities, tells GlobeSt.com that the resident experience has improved by sending residents reminders to pay rent proactively and encouraging transparent conversation between residents and the office.

“Our residents often think they are communicating with an actual person based on the credibility of the conversations with Colleen,” Staciokas said. “We see the future of other conversations being automated such as renewals to encourage quicker turnaround times that will impact overall revenue by closing the gap quicker.”

She said Colleen has helped productivity levels by answering easy questions for residents and encouraging quicker payment.

“This technology frees up additional time for our employees to focus on other high-value tasks such as new leasing and renewals,” according to Staciokas.

Staciokas said the automated platform handles many of the “easy” collections conversations by providing immediate answers – current balance due, and options to pay rent on a plan through its partner Flex.

Prior to piloting and implementing Colleen, Staciokas said Western Wealth managed rent collections in the traditional way by knocking on doors, making phone calls, and sending notices and emails to anyone past due on their rent.

A similar method was used by Morgan Properties.

Jason Morgan, Principal and President of Special Situations, tells GlobeSt.com that it takes “a lot of time and effort” to make phone calls and answer emails discussing balances owed.

“With AI, we are able to have consistent, back-and-forth communication as well as answer resident questions without taking time away from our onsite staff.

“By having a technology that manages collections, our teams can focus on being more proactive at our properties and continuing to provide residents with best-in-class customer service.”

Morgan Properties’ residents benefit from receiving consistent reminders through the Colleen AI platform, and they can still speak to a team member if they need additional help with their rental account.

Morgan Properties is the third-largest apartment owner, according to the NMHC Top 50 with 93,594 apartment homes nationwide.

“We believe that the area of resident collections is just the start of using new AI technologies,” Morgan said. “We are looking at other areas like leasing, renewals, and former resident collection conversations to see how we can leverage technology to improve efficiency at our properties.”

Automated rent collection is an example of what Morgan Properties is doing to stay at the forefront of innovation. Owners, Jon and Jason Morgan, had the vision to form a team to explore new technology solutions that are just coming to market.

“It’s been a crowded market over the past two years with several companies introducing and improving their existing capabilities when it comes to resident communication related to leasing, touring, customer service, maintenance, CRM, and other common operational functions, with AI leveraging its ability to be available 24-7,” Jason Morgan said.

Among the players are tools such as EliseAI, Hy.ly, Leasehawk, BetterBot, Livly, Pay Ready, SightPlan, Dynasty, Knock, PERQ, and Hyro.

“We are always looking out for new companies and spend a great deal of time and effort researching potential opportunities,” according to Morgan.

Morgan Properties said its innovation pilots put potential partners through “rigorous testing” before it commits to expansion in its portfolio. We don’t just add the latest shiny new tech just to say we are innovative.”

“We have a cross-functional team, and we are constantly looking for systems we can improve for our site teams, residents, and our corporate office.

“We do not want to rest on what has been successful in the past as an owner and operator. We are successful implementing the new products we choose because we are thoughtful with the metrics we set and carefully monitor the results when we pilot.”

Colleen AI in July announced $3.5 million in series seed funding led by Wilshire Lane Capital, an early-stage venture capital firm backed by Morgan Properties with participation from Skybox Capital, owner of residential companies Magnolia Capital and National Home Rentals. Its user pipeline includes 2.5 million units.

“Helping residents stay current with their rent payments while ensuring that their apartment communities are operating at peak efficiency, is top of mind for our operators,” said Adam Demuyakor, Founder and Managing Partner at Wilshire Lane Capital in a prepared statement.

“Using their proprietary Generative AI modules, the Colleen team has paved the way for a new breed of innovative solutions that will help better serve our industry.”