How to go from manual mayhem to rent payment bliss
Warning! A harsh reality is coming. ⚠️ No matter what growth stage your rental property management company is in, manual rent collection and traditional payment methods will keep your company from fulfilling its potential. For example, four out of ten tenants still use checks to pay rent, yet checks are the payment option most vulnerable to fraud. Then there are stressful rent weeks with a hefty admin bill and no guarantee of payment. And let’s forget late and non-payments, which are some of the biggest challenges rental property managers face. 😟 The good news is upgrading your rent payment tools, and processes can pay huge dividends. But how do you go about it? In this article, we’ll delve into the reason why traditional rent collection tools and processes miss the mark. We’ll also share ways to bring rent payments into the future. Why traditional rent collection doesn’t make the cut in modern rental property management ❌ It’s easy to look at old-school rent collection tools and processes with nostalgia. Soon, you’re putting off change, reasoning that they’re not that bad and how you’ve always done things. But, holding on to traditional rent collection tools and processes will cost you. Let’s explore some reasons why. Bad and siloed data fuels poor results 📉 Have you ever called the wrong number or been told the wrong name, which you then used when speaking to current or potential tenants? If so, chances are such scenarios weren’t just embarrassing. They also wasted time and left everyone confused. You’re not the only one to be struck by bad data. Outdated information, errors, and omissions cost US businesses a whopping $3.1 trillion every year. The lack of data visibility caused by data trapped in spreadsheets, physical files, and disconnected tools also impacts risk management, compliance and decision-making. Compromised security makes your business an easy target for criminals The reality is that manual payment tools and processes are more vulnerable to manipulation. This fact makes spotting fraud from staff and renters harder. Just think how hard it is to spot a forged check, intentional check bouncing, or expense fraud by eye. Worse, your business ends up on the hook for financial and reputational losses. 💸 Financial losses from manual errors Did you know 79% of renters say they’ve received incorrect, delayed, or lost payments from their property management company which caused them to not rent from them again?😬Not good. Also, the true cost of rent admin isn’t immediately obvious, and there’s the danger. Admin makes up almost 70% of business costs. So, tasks like filing paper statements and verifying rent payments swipe digits from your bottom line. Plus, there’s always the chance costly errors could slip through when you process rent collections by hand. Costly workforce inefficiencies Rent week busywork like calling tenants and tools your team can’t access online or use remotely, like accessing physical records, are set up for failure. A lackluster rent collection strategy creates inefficiencies and low staff morale. They also make it harder for your team to hit targets, slowing business development. Yet, these issues are rife. Half of employees with limited digitization spend a minimum of two or three hours per workday on ineffective processes. Also, 59% of workers say they could save six hours or more if they could automate repetitive parts of their role. 🤦 Poor customer experience 👎 Clunky and manual rent payment tools and processes don’t just impact staff; they can also leave a bitter taste in tenants’ mouths. For instance, say you only let tenants pay rent by check, cash, or bank transfer each month. But you only process payments during business hours in the office. The tenant will have to disrupt their busy schedule to pay your team a visit or call if they have a query or issue, causing inconvenience. Mailing checks and ACH payments can also lead to delays in processing, causing anxiety for tenants waiting for confirmation of their rent payments. The result? Missed payments, wasted time, and strained relationships with renters. Why modernizing rent collection with a rent payments app is always a good idea 👍 If you’ve encountered some of the issues we just covered from traditional rent payment collection, don’t worry. Modern solutions like a rent payment app can help your business turnover a new leaf. Let’s cover a few ways: End-to-end automation leaves more time and money for valuable tasks In today’s busy digital world, people value speed and efficiency. Modern rent collections fulfill this need with innovative technology. For example, with Flex, your tenants can pay rent via our app in a few taps. Our solution also equips your team to manage rent collection on autopilot 🤖 Improve tenant satisfaction and financial health As market volatility continues, renters seek ways to optimize their financial health through rent payments. More flexibility for tenants keeps them satisfied. In turn, you can expect higher retention rates and fewer tenant-related issues. Get this: More than half of renters would “probably” or “definitely” pay more for more flexible rent payment options 82% of tenants want their rent payments to contribute to their credit score 79% believe flexible attributing rent payments to their credit score will give them more financial opportunities Get more on-time payments, improved cash flow, and fewer evictions When you’ve got to cover payroll and maintenance, the last thing you want is delayed rent payments. Yet, when tenants pay rent late, you’re down an income source. Luckily, a rent payments app helps you gain more predictability in cash flow. With an app-based setup and automation, your tenants no longer have to do tedious checks on banking details, set up standing orders, or make trips to the property management office to pay rent. With tools like Flex, renters also get payment due reminders. These features make on-time payments more likely. Avoiding late rent payments also helps your business dodge those pricey evictions, leaving more cash in your company’s pocket.
Personalization in rental property management: A simple guide
Do you remember when adding renters’ names to a mass email or text message was the go-to way to add a personal touch? Personalization in rental property management has come a long way since then. These days, personalization goes beyond surface-level tactics; it extends into the tenant experience, from the amenities you offer to the customer support you provide. The best part? Personalization can have game-changing effects on your business. 86% of people say personalization impacts their buying decisions. Also, customizing experiences can increase your return on investment by 5X to 8X. 🚀 But to get the most out of this trend, you’ve got to know where to invest and what to expect. In this article, we’ll explore some opportunities and roadblocks to look out for. We’ll also unveil how personalization can look in different areas of rental property management to inspire your execution. The perks and pits of personalization in rental experiences Personalizing experiences and services for your tenants can pay huge dividends. But such actions can also come with flaws and pitfalls you’ve got to prepare for. Let’s zoom in on a few. The perks of personalization in rental property management 👍 Boost tenant satisfaction: Making each tenant feel valued and seen is essential to keeping them happy. Personalization can help you do just that. Tailoring renters’ experiences sets a positive tone for their tenancies and enhances satisfaction throughout Increased retention rates: Did you know 76% of consumers are more likely to buy from brands that personalize, and 78% are more likely to make repeat purchases at businesses that personalize? In short, showing renters you value them pays. Tenants are more likely to stay engaged and renew leases. 📈 Build a positive reputation: Customer service experiences spread quickly through online reviews or word-of-mouth. Personalization lets your company leave a good impression on renters and gain social proof. Over time, this perk helps your company a solid brand that drives growth Deeper pockets: Personalization can boost revenue by up to 40%, so it’s a great way to get more cash in the bank. It can drive larger profits by increasing on-time payments and renewals. A retained tenant is worth $900 more on top of rent payments💲 Resolve issues more efficiently: Problems are part and parcel of doing business, but how you manage them counts. Personalization allows you to fix problems fuss-free. For instance, leveraging automation and allowing tenants to report maintenance problems through their preferred channel will equip your team to address them promptly and satisfactorily The pits of personalization in rental property management 👎 Respecting privacy and data protection laws: In the US, the regulations on personalization aren’t clear-cut, so it’s challenging to know what’s allowed. For instance, there’s no US equivalent to the EU’s GDPR. Some states have enforced data protection laws, like the California Consumer Privacy Act, but you’ll need to do some research to find out your responsibilities Balancing consumers’ desire for personalization and privacy: 36% of consumers want brands to do more to offer personalized experiences. But here’s the catch. 17% won’t share personal data and 52% are concerned about companies knowing too much about them. Also, nine out of ten people say businesses should be more upfront about how they handle the personal data they collect. So, it’s tough to know what counts as going too far in personalization in tenants’ eyes and how to manage it. ⚖️ Maintaining equal treatment: Avoiding favoritism or residents perceiving your personalization efforts as such can be difficult. You’ll need to implement general and personalized services and amenities. You’d also have to communicate why everyone gets services based on preferences and offer the option to switch. Securing enough resources can be challenging: Sometimes, staff don’t have the necessary resources to execute personalization successfully. So, they fail before they’ve even had the chance to fight for success. For example, 42% lack the needed insights, and 31% don’t have the right tech. 41% move too slowly due to internal hierarchies impacting agile decision-making. Additionally, 64% of marketers say getting enough budget for personalization initiatives is a roadblock to success. 🔨 Getting staff buy-in can be tough: Property managers and leasing agents often have busy schedules. So, adding another task to their plates, like switching from manual to technology to execute personalization plans, may receive some pushback if the benefits aren’t obvious How to execute personalization like a pro in rental property management You’ve probably seen examples of personalization in your daily life through things like marketing and comms campaigns. But how can you apply this trend to rental property management tasks? Let’s explore some areas to customize your tenant experience for the biggest gains. Conduct surveys strategically 📝 Did you know over 80% of top-performing property managers get feedback from renters? So, before you start any personalization initiatives, ask your tenants for some pointers. Get to know their interests and use this information as your northern star. Check in at regular intervals to stay informed of current tenant sentiments and tweak your approach. While collecting information, it’s important not to pry. Frame survey questions to gather insights without being intrusive. For instance, you can use open questions and text boxes and ask about lifestyle preferences indirectly, allowing tenants to decide what information they want to share. Top tip💡: Be transparent about how you use the data you collect. 76% of people say they want companies to be more upfront about how brands use their personal information. Also, 40% say they would be open to sharing their data if they knew who was using it and why. Tailor onboarding to tenant preferences Creating a smooth move-in process from start to finish is essential for tenant satisfaction and retention. Using personalization is a great way to do it. Here are a few ways: Tweak lease lengths to fit each tenant 📜 Cookie-cutter annual leases won’t be the right fit for every tenant, even if you add a break clause. Some may want longer
Upgrading rent payments? Here’s how Flex can help
From chaotic rent weeks to increasing competition in rental property management, many issues can crop up when your payment stack is out of whack. The result? Sluggish rent payments and unsatisfied tenants. Late and non-payment are some of the top issues property managers face, and 40% of tenants say flexible rent is important. Adopting flexible payments to fix these problems could make sense. So, you’re probably thinking it’s time to upgrade your rent payment technology and scoped out a few solutions. Now, you’ve come across Flex and wonder how it could transform your rent payments. You’re in the right place. In this article, we’ll highlight some Flex features that’ll help your business get ahead. We’ll also share when to give Flex the green light or red light for specific scenarios, tenant profiles, and business types.🚦 What makes Flex so special? Whether it’s an online rental payment portal or a generic Buy Now Pay Later solution, you’ve probably seen many tools claiming to transform rent payments. You may have even tested a few. Now, you found Flex and want to know why you should try it. We get it. Here are a few solid reasons why Flex is the best choice for rent payments: Easy-to-use mobile app 📱 Procrastination is inevitable when tenants have to jump through hoops to pay rent. Clear the way for speedy rent payments with our UX-optimized app, which allows tenants to pay rent in just a few taps. Tenant satisfaction, here we come! Affordable, split rent payments Sometimes, all it takes to increase on-time payments is letting tenants spread rent costs. That’s where Flex comes in. Users can slice rent payments into two affordable portions and adjust the second pay to fit them. (Subject to terms and conditions). Plus, Flex is free for the landlord and has low tenant user fees. Guaranteed rent payments to your business for free No more wondering if or when your business will get paid. We pay rent to landlords on the 1st of the month every month. So, even if a tenant doesn’t pay up, you’ll still have incoming cash, giving you peace of mind. 👌 Automated rent collection processes Flex secures rent payments without your team’s manual effort, from reminders to pay rent to issuing compliant receipts. Taking a load off your team’s back also releases more time for other value-added tasks. As a result, you’ll enhance employee satisfaction and engagement. Free staff user perks Tenants aren’t the only ones who enjoy Flex. Staff who live on properties that onboard Flex can use our solution gratis. That’s right; your business and staff who live on-site pay zilch. This perk can be a great selling point in your talent acquisition policy. It can also boost employee happiness and financial health. Reliable and proven solution 🥇 Only the best solutions will do with something as mission-critical as rent payments. Flex is vigorously tested and continuously improved, which has allowed it to become a trusted property manager favorite. 5.5 million units across the US use Flex. Flex is also among the top 200 in the US Google App Store. It’s got 83K resident reviews and a 4.6 rating. Also, 84% of current partners see Flex as a strategic solution for growth. Smooth integrations Create a property management tech stack that drives cashflow mastery, operational excellence and larger profits with our seamless integrations. For example, you can link Flex to popular property management solutions like Zego, Entrata, Rent Manager, Real Page, and Yardi. Boost credit scores 💳 Get your business noticed by fulfilling a growing ask: using on-time rent payments to build credit scores. Flex does precisely that. As a result, your business can help tenants improve their finances while creating more monetary stability for itself. Who is Flex the best fit for? 🤔 Picking the right rent payment solutions is essential for continued success in rental property management. So, before you sign the dotted line, you’ve got to make sure the solution is a great match. To decide whether Flex will work for your business, let’s zoom in on some instances when Flex could be a hit or miss. Flex is an excellent fit for businesses: ✔️ Serving low-income to mid-income residents: If your resident base primarily consists of tenants receiving Section 8 or other housing subsidies, students, and working professionals, onboarding Flex could be a good shout. You’ll help tenants stretch cash further, relieving money stresses and increasing the odds of on-time payments. [Link to blog post housing types that thrive with Flex] ✔️ Overseeing luxury residences: With costs like large rent payments to cover, many high-income tenants want to preserve cash. Offering Flex can help them stay liquid throughout the month, increasing their satisfaction 💎 ✔️ Looking to end the manual mayhem: Whether it’s chasing payments, filing paper receipts, or verifying details, manual work holds your team back. Onboarding Flex will create space in your staff’s workday to tackle growth-boosting tasks like marketing and sales ⚡ ✔️ Needing more consistent cash injections: Do late payments and delinquent accounts keep you up at night? Onboard Flex and sleep better knowing you’ll get rent payments every month guaranteed ✔️ With small teams wanting to improve productivity: Your team’s size doesn’t need to impact hitting goals. Flex will act as your trusted assistant, securing rent payments and completing the associated admin to maximize your team’s efficiency🙌 ✔️ Receiving requests for better payment options and more flexible terms: If the current tools you offer to pay rent are less than stellar, don’t sweat it. Turn over a new leaf with Flex. Our modern and flexible solution will allow you to keep up with tenants’ latest rent payment preferences easily ✔️ Wanting to diversify or digitize their payment options: Need a powerful rent payments solution to complement your existing payment stack? Flex can help. Our solution is a solid option for renters who want a quick,
Navigating rental property management in the new digital economy
Handling resident requests. ✔️Arranging viewings. ✔️Sprucing up properties. ✔️Analyzing portfolio revenue performance. ✔️ These tasks are part and parcel of being a property manager. But with a seemingly endless task list, it’s tough to work out which tasks will get your business ahead. Too much on your plate can have huge knock-on effects, from burnout and mass resignations to resident dissatisfaction and churn. Yet, 56% of property managers feel their work schedule is either on the busy side (43%) or hectic (13%). Also, 36% of those not in leadership spend around 36% of their time on “busy work,” and 1 out of 4 plan to exit the industry within the next five years. 😟 With such concerning stats, one thing is clear. You’ll need a laser-focused plan to succeed in property management for rentals, which is what we’ll break down in this blog post. Let’s dive in. Table of contents The key duties in managing rental properties Your checklist for successful rental property management The secret to brag-worthy wins in property management for rentals Noticed a decline in on-time payments? Get paid faster with Flex. The key duties in managing rental properties Want to execute property management for rentals without hustling backward or overextending your team? It’s time to streamline your task list. The responsibilities to concentrate on fall into two categories. Let’s break these down. Strategic focus #1 – Managing money “Cash is king!” as the saying goes. Capital is every business’ lifeblood, so prioritizing financial health is vital. Here are some money management tasks to master. Cash flow management Did you know cash flow issues kill 82% of businesses? Maintaining positive cash flow is essential to thriving as a landlord or property manager. This includes ensuring adequate liquidity to cover operating expenses for six months and planning for emergencies and investment opportunities. Overseeing expenses From staff wages to maintenance costs, expenses ebb away at your profits. Limiting expenses to necessary bills and monitoring spending is crucial for financial health. It’s also important to leave room in the budget for unexpected bills to avoid disruption.🧾 Optimizing for profitability Balancing spending, investing, and saving is crucial for making gains in rental property management. Financial analysis is an essential task that will help you know when to cut projects and invest resources. Accounting and tax management Balancing the books and understanding your tax obligations is not only a legal requirement; it determines your company’s bottom line. Understanding how to reduce your tax burden through depreciation, government initiatives, expenses, and grants is a must. Managing payments Getting paid on time is a surefire way to keep your company’s financial health in order. An efficient payment stack that makes it a breeze for residents to pay rent, plus your team to manage collections and track spending, will do the trick. For rent, this could look like using a solution like Flex to offer flexible payments and automate collections (more on this later). 💳 Strategic role #2 – Streamlining operations⚙️ Another essential responsibility is optimizing workflows. Some areas to focus on include: Managing payments Maintenance is a mission-critical task for rental property management. It can help you avoid major repairs and rushed orders, reducing overall costs. Staying on top of maintenance also avoids unsightly buildings and increases renters’ enjoyment of the property, aiding retention.👷♀️ Revenue optimization resident acquisition, retention, pricing strategies, and community engagement are just a few of the tasks you’ll need to manage consistently. But don’t worry; your efforts can create larger income and profits to boost your business’s financial health. Staff engagement Employee happiness not only affects staff well-being but also impacts your company’s effectiveness in rental property management. Yet only 33% of staff are engaged at work. Investing in staff will do wonders for your property management company. Businesses with highly engaged teams are 23% more profitable, 18% more productive, and have 43% less staff turnover. Your checklist for successful rental property management Now we’ve got an idea of the tasks you’ll be overseeing, it’s time to create a plan to execute them. Let’s look at some strategic moves for less stress and more takings. Leverage technology for supercharged efficiency Technology will be your greatest asset in streamlining property management tasks. To begin, itemize and group the jobs your team carries out in their roles. Then, find solutions to make completion easier, faster, and more efficient. This could look like software for: Automate, automate, automate Managing rentals is a demanding role that has many moving parts. As a result, some staff can struggle to keep up, leading to stress and disengagement. 53% of property managers struggle with their mental health and switching off after work. Tackle this issue head-on by letting technology do the heavy lifting. You can automate many repetitive and administrative tasks that have a hold on your team’s time. For example, you could: Conduct high-quality maintenance works Whether you offer luxury or budget accommodations, commit to keeping properties in tip-top condition. You can achieve this by creating a preventive maintenance plan in line with each property’s requirements and standards. Define what work each building needs. Then, schedule the tasks in a calendar with a supporting checklist and notifications. This approach will ensure your team never has to guess what work to prioritize and can plan to secure the necessary resources to avoid expensive, rushed orders. 🛠️ Some key maintenance areas include: Top tip💡: Before diving into maintenance work, investigate and execute upgrades to enhance property value, safety, and perceived value. Then, start work where residents will see or feel the biggest improvements. Support your staff Whether it’s confrontations with unruly residents or jam-packed schedules, property managers battle challenging work environments. To make matters worse, some employers don’t equip their staff with the training and tools they need to thrive in their roles. 24.3% of property managers say managing aggressive and abusive renters is the most stressful part of their job, and just 34% of property managers believe they’ve had the necessary to execute their role successfully.
Property managers are winning with digital transformation. Here’s how you can too.
Make no mistakes about it: the world has gone digital. Digital transformation accelerated by 7 years during the pandemic, and the tech takeover shows no signs of slowing down. Global spending on digital transformation hit a whopping $1.3 trillion in 2020 and is tipped to reach $3.4 trillion by 2026. The best part? Innovative solutions aren’t just for the eCommerce companies among us. They’re taking property management by storm, too. 🌪️ In this article, we’ll explain why many property management companies are taking the digital transformation leap. And, to kickstart your tech makeover, we’ll highlight some key business areas to optimize and tools to use. Finally, we’ll share tips and tricks for making your digital transformation successful. Let’s dive in! Table of contents What started the digital revolution in property management? How to drive property management efficiency with digital tools Championing digital transformation in property management the right way Starting your payment digital transformation journey? Hitch a smooth ride with Flex. What started the digital revolution in property management? It’s no secret that technology in real estate and property management has lagged behind other industries. For the longest time, manual tools like spreadsheets, checks, and basic accounting software were as high-tech as things got. But now, you’ve probably noticed a shift to tech-powered solutions and processes. You’re on to something. 61% of real estate companies have embraced technology, with a third adopting one to two solutions. So, what’s caused this switch to digital solutions? Let’s take a closer look: Gain a competitive advantage and manage crises more effectively: With more than 326,000 property management businesses in the US alone, competition is stiff. More landlords are realizing the need to adopt tech solutions to get and stay ahead of their competition. Then there’s the crisis management aspect. In the past, property managers could get away with basic tools. However, the pandemic provided a wake-up call. Technology in real estate is essential to stay operational and keep rental income coming during disasters. Around 78% of property managers said they had to reconsider their tech strategy or need for new tools following the outbreak. How to drive property management efficiency with digital tools So, you’ve decided now’s the time to start your digital transformation. Great choice! But how do you do it? And what solutions will you need? Let’s cover some essential steps: Get your mindset right 🧠 The sobering reality is that 70% of digital transformation journeys fail. But do you know a determining factor in the success of a digital transformation journey? Mindset. Here are some tips to keep your thoughts in top form: Build a robust strategy Get this: 61% of property management businesses use technology, and just 28% have adopted multiple products. Also, 35% are still scoping out the market, and 4% haven’t begun strategizing how to apply the technology. So, what are these property managers missing? A solid game plan to create a well-rounded tech stack. How you design your framework will depend on your business size and needs. But to gain some perspective, let’s say you’re a mom-and-pop style landlord. Your strategy should have five stages: In practice, this game plan could look like this: Top tips:💡For best results, give each phase a timeline. Also, include a buffer to stay on track when unexpected challenges arise. Identify high-impact areas and solutions to jumpstart your optimization During the goal-setting and research phase, you’ve got two make-or-break tasks. First, uncover the business areas that’ll benefit most from digital transformation. Then, prioritize finding tools that’ll give you the most bang for your buck. In property management, some top areas to explore include: Flexible payments We’re on our phones and laptops more than ever, using tech to tackle mundane daily tasks. So much so that 67% of people have paid a bill online via mobile.🤳Combine this fact with the harsh financial climate many face, and it’s easy to see why digital and flexible payment solutions are a must-have. So, offer solutions that embody the tech-driven future, like Flex. Here’s why: ✔️Flex guarantees rental income to landlords on the 1st of every month ✔️Residents get access to a rent payments app for mobile ✔️Residents can split rent payments into two manageable parts ✔️Tenants and property managers can manage payments on the go ✔️Flex has nominal fees for the user and at no extra cost to the landlord ✔️In case of default, Flex takes over the recovery process, making it risk-free for the operator Property management Even if you’re managing one property, a comprehensive property management solution can pay huge dividends in time and money saved. They’ll allow you to quickly execute tasks like qualifying tenants, managing leases, and arranging inspections. You’ll also be able to automate admin work like form filling, paying bills, and customer support. Check out solutions from companies like Appfolio, Mews, Rentec Direct, Entrata, and Buildium. Tenant experience Resident experience solutions improve the quality of stay at your property. Various tools fall into this category. We’re talking chatbots, live chat, ticketing tools, and online portals to manage maintenance and concierge. Tailor your choices to your resident profile for the best adoption and satisfaction rates. For instance, say you have millennials and Gen Xers as your primary resident base. You could use tools like Slack and Zoom to communicate and customer support via social media like Instagram, Facebook, and WhatsApp. Data analytics and system automation Riches lie in your data. So, it’s essential to utilize the insights flowing into your business. Look for tools that store and organize data, analyze trends, and access the latest market research. Combine these solutions with tech that turns manual tasks into hands-free processes. Tools like auto-responders with pre-built scenarios, auto-filling, and automated onboarding sequences are a great place to start. Companies like RealPage, Segment, Propertyware, Innago, Condo Control, CoreLogic, and DoorLoop can help. Sales and marketing Having a constant flow of leads is critical to keep the rental income rolling in. Look for solutions that make marketing your properties a breeze at every
