The amount of money owed in rent arrears on council homes in Nottingham has been reduced by £6m.
The group was awarded only one star in a government audit
Nottingham City Homes, the organisation responsible for managing council homes, has brought down the amount of unpaid rent from £10m to £4m over three years.
NCH was awarded only one star in its Audit Commission report published in March and its prospects for improvement were rated "uncertain".
Officials now want to increase the amount of rent collected to 97%.
Collections have increased from 87% in 2003 to 95% in 2006.
The organisation's allocations policy was criticised by Audit Commission inspectors in March and work is being carried out to make it more transparent.