Predicting tenant default for some of South Africa's largest property developers

Predictive Tenant Default Software

Vizibiliti Insight provides predictive tenant default solutions enabling property managers to proactively identify and respond to tenants at risk of paying late.

Arrears and write offs in the South African property management exceed a billion rand. On average most portfolios are operating between a 1-3% impaired tenant and write off rate.

Our solutions identify tenants who are at risk of not paying based on historical and current data linked to macro factors outside the businesses control directly effecting a tenants ability to meet their contractual commitments increasing their risk profile. Predicted tenant default risks are supported by real-time recommendations to reduce arrears.

Our objective – to provide real-time risk analysis on future and existing tenants supported by recommendations to act on identified risks.

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CEOs see why

Of CEOs agree that their strategic decision-making capability can be improved with fact-based predictive tenant insights. Insight that can promote proactive decision-making before risks turn into tenant write offs. 86% of CEO’s view predictive risk analysis solutions as a significant competitive advantage over other businesses contributing to fewer impaired tenants, reduced provisional write offs and reduced operational costs.

 

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CFOs see why

Of CFOs agree predictive data is important to increase operational efficiency, reduce operational costs and minimise tenant default risks. Research shows that finance departments increasingly rely on early warning predictors to make better financial decisions in shorter periods of time. In a recent survey, 88% of financial managers have high trust scores for solutions which integrate multiple internal and external variables indicative of tenants default or write off.

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Property managers see why

Of property managers are unable to predict tenant defaults. 8/10 businesses expressed that external and internal factors affecting tenant default risk are known by a few experienced individuals and not digitally learned for future leaders. A common theme has been to move beyond just analysing data manually or through dashboards into predictive insight supported by suggestions on what to do next once a risk has been raised.

Reduce tenant arrears and write offs

 

Forecast tenants with the highest likelihood of impairment or write-off. Vizibiliti Insight develops scientific algorithms and models to predict tenants at risk of paying late or not at all.

The objective is to reduce the existing debtors book with a focus on reducing the number of impaired tenants leading to a write-offs. By forecasting tenant default likelihood CEOs, CFOs and property managers can make better decisions before a risk becomes a write-off.

Vizibiliti Insight’s Tenant Default Solution is customised to each business ensuring continuous alignment to strategic sustainability and growth targets.

 

Identify what known and unknown factors have the highest impact on property portfolios

 

Correlate trading density, vacancy rates, GLA among several other key metrics against macro environment factors.

Vizibiliti Insight correlates macro environment indicators (factors outside the property managers control which have a direct or high-impact on financial success) with internal data sources (data generated by the property portfolio some of which include financials, fund performance, tenant mix) to produce detailed tenant risk analysis insights.

By doing so, risks outside of the organisations control can be quantified with the resulting impact on bottom line results. The objective: to improve real-time decision-making, reduced portfolio risk and increased operational efficiency.

 

Smarter tenant pre-screening, contracts and reduced legal costs

 

Vizibiliti Insight creates a smarter tenant pre-screening process by investigating multiple risk factors including the current and future tenant business cycle projections, social media analysis, disputes and macro environment indicators.

Smart contracts correlated with real-time risk indicators for future and existing tenants reduce legal fee’s, administration and time.

Continuous portfolio optimisation enables property and fund managers to increase their agility when responding to positive and negative market conditions, proactively responding to opportunities and risks while continuously monitoring the impact on bottom line results.