How to future-proof your technology investments in rental property management
Thinking about going digital in your rental property management business? You’re in good company. Digital transformation is a top priority for 74% of companies. Also, 61% of real estate businesses have adopted technology, with a third embracing one to two solutions. 💪 But in rental property management, there’s a lot to consider, and the stakes are high. Should we invest in fixed or custom-built solutions? What’s this project going to cost? What’s our ROI? Is this move worth the risk? 🤔 The apprehension is understandable when you consider how quickly solutions become obsolete. After all, technology like floppy disks and fax machines were once high-tech. You’ll need to plan for longevity to see long-term success in your digital transformation. We’ve got you covered. In this article, we’ll share the key areas to consider when selecting solutions. We’ll also cover some current trends to guide your decisions. Your future-proofing tech list for rental property management 📋 Do you want to see long-lasting results from digital transformation? Well, as the famous saying goes, you’ve got to “start with the end in mind”. Let’s explore some features to consider. Scalability When you’re running a rental property management company with ambitious growth goals, scaling fast is a possibility, and you’ve got to prepare for it. So, it’s essential your tech stack can grow with your business. 📈 Opting for flexible solutions that allow you to scale usage up and down to support business needs is an effective way to do it. This move will ensure uninterrupted service as your portfolio expands and can reduce costs in market downturns. Adaptability Things change, and over time, so will your business. Throughout your digital transformation, it’s critical to onboard flexible technology, allowing you to adapt to changes in business and market demands. Agility will be invaluable to your rental property management company. Compared to non-agile companies, agile businesses report better customer satisfaction (93%), enhanced employee engagement (76%), and increased operational performance (93%). 🔥 The companies you partner with shouldn’t stagnate, neither should their technology. They should have a history and commitment to incorporating new functionalities and processes. Integration 🔗 “If cash is King, data is Queen.” Integrating solutions within your rental property management ecosystem reduces data siloes and unlocks a new level of insight sharing across teams. You’ll have a more accurate view of your company’s current position on liquidity and compliance. You‘ll eliminate data sharing inefficiencies, making it faster to spot potential opportunities and challenges and giving your company a competitive advantage. For instance, such an integration could involve linking your HR, IoT, property management, HR, accounting, and flexible payment solutions. Costs for setup and maintenance 👨🔧 Tech debt is real. Solutions can be expensive through time investment and cause lost productivity or funds. Companies incur $1,083,000 of technical debt for every 300,000 lines of code. Companies also saw 23-43% in wasted time. The result? Your business progress stumps. Affordability and good value for money are crucial to future-proofing your technology investment. A cost-effective solution should balance upfront investment, long-term operational savings, and income production. Don’t just look at now but a few years down the road. Top tip💡: Evaluate both the initial setup costs and ongoing maintenance expenses. Automation 🤖 What would your team’s work day look like if they didn’t manually battle rent week or admin? We’ll set the scene for you: more efficient, productive, and happier. The not-so-secret digital transformation hack is automation, and every solution you pick should leverage it. 73% of IT leaders say automation saves 50% of their time. Also, 51% believe automation slashes costs by 10% to 50%. Selecting solutions with built-in automation will ensure that every new tool takes tasks off your team’s hands instead of creating new ones. Automation can also reduce errors, resulting in increased accuracy rates. For best results, look for systems that offer rent payments and collections automation, maintenance scheduling, rental property management tools, and communication features. User-friendly interface Have you ever had to send money by bank transfer, money transfer service, or online rent payment portal? Using these solutions involves a lot of clicking, double-checking, and hoping the details are right. If not, your company or the tenant could be footing the bill. 😟 Yet, many tenants endure this stress monthly. There’s also no leeway for split rent payments without going through the laborious admin again. Then there’s the notorious rent week [Link to rent week blog post], where many teams battle collections month in and month out. To eliminate these battles, ensure every rent payment and rental property management solution you select balances ease and convenience with security and affordability. For example, a long-term approach to digital transformation could look like implementing a rent payments app like Flex. Our solution allows you to offer flexible payments on a mobile app with a UX-optimized interface. This setup will allow painless rent processing for tenants and your team. Data security and compliance Whether it’s the typical tenant or a mega-corporation, fears surrounding data security are rising. It’s easy to see why. Between 2021 and 2023, data breaches skyrocketed by 72%, obliterating the previous record. Additionally, 40% of US consumers are concerned about their digital privacy. 😰 Protecting tenants’ personal and financial data is essential to building trust and maintaining good relationships. To achieve this, ensure that each technology complies with relevant data protection and compliance regulations and has robust security measures. For instance, end-to-end encryption, security certificates, firewalls, pen tests, and security audits to safeguard data. Mobile accessibility 📱 These days, it’s a challenge for most people to spend a day without using their phones. We use them to execute routine tasks, from paying rent to booking repairs. So, it’s unsurprising that mobile payments are tipped to make up 79% of all digital transactions by 2025. Mobile apps are the future. Your rental property management tech should reflect this. Every solution you select should facilitate on-the-go property management for tenants and staff. For example, tech-savvy property managers use
A simple guide to money management for property managers
Imagine this: It’s rent week, and you have 3000 units and over 4000 renters to manage. Late payments and revenue fluctuations are recurrent issues. Over a third of tenants have dodged rent so far. 300 residents won’t be renewing their lease. At the same time, a bunch of water heaters are out, and contractors are quoting an eye watering, five-digit figure to fix them. Oh, and your best administrator just handed in their notice. These issues have one consequence in common. More costs for your business. And just like that, your profits nosedives.😰 Sadly, this is the daily reality for many landlords and property managers. 7% of landlords missed mortgage payments during the pandemic due to tardy rent from tenants. Landlords in Miami and New York, where cash reserves were lower, experienced such losses disproportionately. Some landlords also couldn’t pay property taxes and maintain properties due to delinquencies and tenant evictions. The good news? While the economy may keep swinging, you can block some of the impact with some sharp money management blows, namely a financial cushion. In this article, we’ll explore why and how to build one. Financial instability: The stressful reality rocking rental property management Cost of living crisis, check. Rising operating costs, check. Increasing compliance and sustainability obligations, check. These issues add up to a hefty bill for which your rental property management company is on the hook. It’s a huge deal since the demand for rent has fallen, with decreases hitting 0.78% in December 2023. Then there’s the fact that margins in property management can be slim, with fees between 4% and 12%. 🤦 Optimizing your money management may seem like yet another task to execute on your team’s already-packed to-do list. But the payoff is worth it. Once you build a solid financial runway, your business can take off. You’ll have more security, profits, and freedom to take advantage of scaling opportunities. 👍 What does a typical financial cushion look like? 🤔 When it comes to finance management for a rental property management company, what’s a smart decision will depend on its unique circumstances. However, there are some milestones you’ll want to achieve on your money management journey. These include: Funds to cover at least 12 months of expenses, like staff salaries, mortgage payment taxes, and community association fees Affordable credit lines for emergencies Optimized rent payment solutions and processes Streamlined expenses and adequate spending controls 6 Financial management tips for landlords 💰 Whether you’re starting from scratch or have some runway saved up, reaching the next stop in your money management journey will take some planning and sacrifice. Let’s dive into some money management moves to execute and position your rental property management company for success. Understand your company’s current financial position “If you fail to plan, you are planning to fail,” as Benjamin Franklin quite rightly put it. So, first up on your financial management task list is getting up close and personal with your business’ numbers. Take a look at the figures from the last three to five years and note any trends and inconsistencies. In particular, Evaluate the company’s capital needs. Include past, present, and future obligations. For example, mortgage, ops, insurance, and property renovation costs Assess the company’s profitability by property, area, and segment to highlight top performers and laggards 📊 Examine the company’s liquidity (a.k.a. working capital) and solvency ratios. Use these figures to understand how well your company can meet its obligations, stay in operation, and remain viable long-term. If number crunching isn’t your forte, call in reinforcements from an accountant for cash flow management and forecasting help. Some records and metrics that will be useful here include: Historical and current financial statements, e.g., cash flow statements, balance sheets, income statements, and Accounts Payable ageing reports Performance figures, e.g., revenue, net income, gross profit margin, net profit margin, leverage, working capital, current ratio, and return on assets Cash flow metrics, e.g., Operating Cash Flow (OCF), Days Sales Outstanding (DSO), Average Days Delinquent, Current Accounts Receivable (CAR), Current Accounts Payable (CAP), Cash Conversion Cycle (CCC) Capital structure, e.g., Debt to Equity ratio, Weighted Average Cost of Capital (WACC) and Debt Service Coverage Ratio (DSCR) Comparative analysis. Compare the company’s capital structure with industry peers and competitors to assess its relative leverage, liquidity, and financial risk. Look for deviations from industry norms and investigate underlying reasons Set achievable, cash flow-boosting goals 🎯 Now you’ve got an idea of company finances, it’s time to set some money management goals. They should empower your business to eliminate monetary burdens and create more financial freedom. For instance, you could focus on: Optimizing cash flow management, e.g. increasing cash reserves by negotiating payment terms with suppliers Reducing debt Increasing revenue, e.g., through maximizing rent occupancy Improving rent collection efficiency, e.g. offering split rent payments and having tenants pay rent online (more on this later) Streamlining expenses Creating an emergency fund for unexpected expenses Top tips💡: Be specific in your money management plans. Set S.M.A.R.T. goals. Also, pick three to focus on initially. Then once you’ve nailed the goal, move on to the next. Automate finance-related processes to support money management 🤖 If your team spends umpteen hours on admin, it’s costing your business big time. Labor can consume up to 70% of business expenses. That’s money that could be going into your financial cushion. So, it pays to reduce the administrative burden in your business through automation. In practice, calling in the bots to uplevel your finance management could look like: Implementing digital tools for bookkeeping and expense tracking. Including spend controls like company cards and automated categorization and approvals Setting up automated invoice generation and distribution for recurring expenses like utility bills and vendor payments Automating savings into different accounts for specific functions, e.g. the emergency fund or investment account Generating financial reports automatically by using tools with in-built reporting features and accounting software integrations Automating budgeting and forecasting processes to track financial performance and plan for future expenses
Unlock the power of tech with these 6 must-have rental property management tools
Technology in rental property management has come a long way. In a short time, we’ve gone from relying on Rolodexes, spreadsheets, and checks to using digital payments and AI-backed property management tools. So, if you want to get ahead in rental property management, it’s time to reevaluate your tech stack. Investing in digital transformation can pay huge dividends for years to come. 92% of companies that have become digital leaders have seen a 17% increase in profit margins over three years, polished off with a 72% digital tool adoption rate.🔥 In this article, we’ll trace the issues that kickstarted digital transformation in property management and their consequences. We’ll also reveal some of the latest and greatest solutions to invest in to take your business to the next level.🚀 The problems with traditional tools fueling the tech takeover Paper invoices, payment logbooks, postal orders—remember those? You may even still use them. These were once rental property management staples. Then, in the 1980s, PCs and spreadsheets like Lotus 1-2-3 and Microsoft Excel came along. Suddenly, there was a formula for almost every task, including record-keeping, accounting, and even communication with tenants and vendors (we’re looking at you, Mail Merge!😜). These technologies were a step up from their predecessors. But, some issues reared their ugly heads continually, setting property managers back. These include: Human error: Mistakes are common when using manual tools, whether it’s entering the wrong information into an Excel cell or forgetting to process a paper invoice. The consequences can be catastrophic. Take Citigroup, for example. An admin error while wiring funds caused an eye watering $900 million loss. 😨 Time-consuming processes: Not all tech is good tech. In fact, some simply switch out the typical issues that manual tools bring with a whole new set of problems. A great example of this is online rental payment portals. While they’ll let a tenant pay rent online, some are inefficient, hard to understand, and expensive. Lack of real-time updates: Speed is everything when closing tenants on leases. But it’s hard to be fast when you’ve got to dig through physical documents and spreadsheets while relying on memory or calendar invites. And just like that, leads go cold, and your business misses out on precious revenue. Limited data accessibility: Imagine being off-site at a viewing, and you need access to a prospective tenant’s data to close the deal. The problem is that the sales file is in paper form. So, you call your colleagues, but they’re at lunch and in meetings. Now you’re stuck, and your hard work is on the line. Such are the consequences of manual and paper-based processes. The result? You guessed it—more lost sales. 💸 Ineffective communication: Keeping prospective and current tenants updated is critical in property management for rentals. Except, reliance on traditional comms channels like phone calls, physical mail, and email leaves the door open for mistakes. For example, you might not record key data or miss messages, creating a poor tenant experience and financial losses. Data security concerns: Cybercrime is at an all-time high and shows no signs of slowing down. Losses could hit a record $13.82 trillion by 2028. Also, 98% of US consumers worry about the existing cybercrime threat. So, common practices like writing sensitive information like bank details and tenant profiles on paper and using unencrypted tools, won’t cut it. They’re a recipe for financial and reputation losses. Growing demand for more efficient and automated solutions: Imagine paying rent by bank transfer or verifying payments by eye. Every. Single. Month. This process gets old quickly. Soon, procrastination can set in, making on-time rent payments less likely. Those staff that power through pay for it with overwhelmed schedules and burnout. Lost opportunities, admin errors galore, and frustrated tenants soon follow. All of which negatively impact your bottom line. 😩 6 must-have tools for successful rental property management Perhaps you’re using some of the traditional tools we just covered and experiencing the headaches that come with them. Or maybe you’re using newer technologies but not seeing the gains you’d like. We’ve got you covered. Let’s explore some game-changing solutions and their perks. (AI-powered) property management software 🏢 First up, an industry favorite. Property management software is like a marketing, sales, bookkeeping, and administrator platform rolled into one. This solution acts like your very own assistant, streamlining and digitizing processes. Some benefits of property management software include: Less busy work, increasing productivity Maintain accountability by tracking actions Comprehensive task management spanning lease management, maintenance tracking, accounting marketing, sales, and more Reduce the administrative workload by automating tasks like managing tenant inquiries and maintenance requests Improved response times that enhance tenant satisfaction Streamline important administrative tasks like document processing and renewal reminders Increase data democracy and sustainability by going paperless Flexible rent payments app📱 In a world where 2 billion people use mobile payments, it was only a matter of time before renters started to expect more modern rent payment options. A huge leap forward in payment technology is a rent payment app. Residents pay rent through a few clicks. This technology can replace checks, bank transfers, standing orders, and the tedious admin associated with them, making life easier for all. For example, a solution like Flex, a rent payments app, residents can split rent payments and manage them when and where they want. Some more perks of a flexible rent payments app are: Stabilized cash flow (Flex pays out full rent to you at the beginning of every month) Improved financial visibility, reducing late payments and administrative overhead Higher NOI and ROI Streamlined and automated rent collection, allowing your team to reclaim their time More resources to focus on other strategic initiatives Increased leads, sales, and renewals Higher tenant satisfaction AI customer support solutions 🦾 Answering tenant queries and concerns is a given in property management for rentals. So, you need tools that’ll make your customer service flawless. That’s where AI-backed support solutions come in. From chatbots and virtual assistants to automated ticketing and case
Automated rent collection with Flex: What’s in it for you?
Inconsistent payments, late nights completing admin, and cash flow disruptions. These are just a few of the battles you’ll face when managing rent collection with manual tools and processes. If you can relate, don’t stress. There’s hope in sight. 50% of employee tasks can be automated, and rent collection is one of them.👍 We’ve built an innovative rent payment solution that takes the stress out of getting paid. In this article, we’ll share how Flex automates rent collection and why it’s the best way to collect rent as a landlord or property manager. How Flex puts rent collection on autopilot ✈️ You’ve probably heard countless businesses claiming to have the solution to beat all rent payment solutions. You may have even tried a few, but the trials fell flat. So, what makes Flex the best way to collect rent as a landlord or property manager? 🤔 Automated and flexible rent payments. Flex allows tenants to split rent into two bills, making payments more manageable. Let’s zoom in on how our solution works to guarantee rent: Your company uploads the new rent bills for each tenant to our solution before the end of the month. This includes any extra charges for things like utilities you’d like to include 🧾 Flex then collects the first rent payment (plus the membership fee and any payment fees) from tenants, typically between the first and fifth of the month. If there are any issues with getting the first payment, we’ll let your company and the tenant know quickly Once Flex secures the first portion of rent from the tenant, we’ll pay your company the full rent 💰 Next, we’ll schedule the second rent payment with the tenant. Then we’ll collect the payment from the renter on the 15th of the month or their chosen date And that’s it! Your rent payments are on cruise control. 🎊 Offering flexible payments: What’s in it for us? By now, you’ve likely heard about all about the perks tenants get using flexible payments via an automated rent collection system. But what does your rental property management company stand to gain? We’ve got you covered. Here’s a breakdown of the benefits your business can expect from using Flex: Clawback precious time to boost efficiency 🚀 Rental property management has become an increasingly demanding role with many moving parts. The hustle and bustle is taking its toll on staff—so much so that 1 in 4 is leaving the industry. This trend negatively affects the remaining team, who must work even harder to keep rent coming in. However, since Flex takes over the task, your team can reclaim time and enhance its performance. This feature allows staff to focus on other important tasks to drive their career and the business’ progress. Eliminate boring, repetitive tasks to drive staff productivity and satisfaction Did you know that the average worker spends 4 hours and 38 minutes on repetitive tasks every week, amounting to 219 hours each year? Now imagine dedicating this much time or more to manual rent collection with an already packed to-do list. The chances are it’s not your idea of fun or good use of time, and your staff probably feel the same. This setup isn’t just painstaking; it drags down output and morale.😔 But with Flex, your team won’t have to spend hours executing rent collection by hand. Our solution also removes the administrative burden, reducing the need for manual data entry, reconciliation, and error correction. Take Sage Ventures, for example. The property management team now saves 5 hours per week per Assistant Manager using Flex. Razor-sharp accuracy that reduces costly errors Processes involving manual entry, like rent collection, aren’t just a chore; they’re costly, too. But it’s not just the extra hours that drive up costs. It’s the inevitable mistakes that creep in and wreak havoc. In 2008, business professor Raymond R. Panko published a paper covering various research on manual entry. They found tasks like putting data into documents and spreadsheets had a human error rate between 18% and 40%. With Flex, you’ll eliminate the manual entry from rent collection tasks, minimizing discrepancies and disputes. We even offer integrations with property management solutions like MRI, RealPage, Yardi, and Entrata to reduce data silos and errors. Uplevel your cash flow and net operating income 📈 Securing rent on time is essential for healthy cash flow. So, it’s unsurprising that 75% of landlords want to be paid the first of every month. But it’s challenging to hit this target with clunky and slow rent payment tools and processes. Here’s where Flex comes in. You get paid every month, which is guaranteed. Our solution also reduces the risk of payment failures and delinquencies. These features mean you’ll gain more stability in your income. You’ll no longer have to wonder about where your next cash injection will come from, enabling you to budget more effectively. This perk is invaluable for unexpected costs and covers hefty bills like property improvements and maintenance. Plus, the automated rent collection process means fewer staff members oversee it, making it more profitable, too. Get and stay in tenants’ good books Miscommunication on rent due dates, forgetfulness, and tenants who dodge calls when rent is due are all common issues in rental property management. Those hard-to-use and manual solutions make on-time payments even more unlikely. Worse, if your team can’t secure rent in time, your company will be footing the bill. 😨 The good news is our automated, mobile-based rent collection solution removes such friction points, allowing you to offer a smooth experience for tenants and staff. So much so, property managers and landlords using Flex see an average boost in tenant satisfaction of 85%. Here are a few things Flex does without your team’s manual effort, making it the best way to collect rent as a landlord or property manager: Send consistent reminders to avoid late fees and credit report hits 📅 Send payment receipts automatically to maintain regulatory compliance Facilitates tenants’ paying rent
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. Enhanced transparency and accountability From intentionally bouncing checks and falsified documents
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. Predictable, on-time 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. ✔️ 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, easy, and digital way to pay 🤳 Flex won’t be the right fit for companies: ✖️ Whose tenants don’t use or want mobile payments: Say most
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 eat 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: Property management Expense management Account management Customer relationship management Social media and marketing Payments, e.g., split rent payments for resident rent 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: Implement automated reminders for lease renewals Set up onboarding sequences to initiate the renewal process Automate the vendor payments for recurring bills, like landscaping or utility services Launch a chatbot to answer resident questions and resolve basic issues 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: HVAC system maintenance to ensure heating, ventilation, and air conditioning systems are functioning efficiently Regular inspections, e.g., on plumbing, electrical systems, and structural components 👨🏻🔧 Appliance checks to service products provided to the resident in their unit and communal appliances like vending machines,
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
