Smart Collection of Rent Receivables as an Element of the Sustainable Development Strategy of the City

Abstract:

The article describes modern methods of debt collection of rent receivables in the management of municipal premises. Traditional and alternative methods of debt collection as well as related economic and social consequences are presented herein. In particular, social consequences of traditional debt collection procedures, such as increasing the phenomenon of the debt spiral, homelessness, social exclusion and accompanying addictions to psychoactive substances, crime and learned helplessness have been indicated. Conclusions point out that the managing entity should apply sustainable development strategies in municipal housing management, which is expressed in building relationships based on trust with a special group of stakeholders such as tenants of municipal premises. This strategy consists in including additional effects in debt collection procedures besides maximizing the collected sums of money. These effects are family protection, prevention of homelessness and social exclusion. Such behavior of enterprises that manage municipal premises allows for the effective implementation of the municipality's task to satisfy the needs of the local community. The empirical research included an analysis of numerical data in terms of social housing and rental debt. The quantitative research was supplemented with qualitative surveys that covered the selected rent debtors of the city of Czestochowa. The purpose of the dissertation was to assess the influence of the soft debt recovery program on social effects based on the example of TBS Czestochowa.