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
7 lethal mistakes property managers make with rent payments
Tenant complaints, choppy cash flow, and never-ending admin—sound familiar? These are just a few signs costly payment mistakes have infiltrated your camp. You’re not alone. Across the pond, 60% of UK landlords have seen a spike in late rent payments, and this is just one problem. A less-than-stellar payment stack and process impacts tenants, too. 79% of renters say issues, like lost, incorrect, or delayed disbursements from their property manager, have caused them to stop renting from them. 🫨 Efficient and accurate rent payments are pivotal to your company’s success. So, it quite literally pays to get your solutions and processes in order. In this article, we’ll shine the spotlight on the top payment faux pas in rental property management and ways to avoid them. We’ll also reveal a popular solution you can use to get your payment stack up to scratch without investing heaps of time, effort, and money. Let’s get into it. 7 lethal payment mistakes rental property managers make Mistakes, we all make them. But when your company’s money is on the line, it’s best to prevent as many as possible. The first step to solving issues in your rent payments is acknowledging they exist. Let’s zoom in on some of the most common mistakes. Mistake #1: Enforcing rigid payment schedules 📅 No one wins when you have inflexible rent payment rules and processes. Your staff has to battle through rent week chasing late payments. Renters can struggle to pay on time, putting your company’s precious cash on the line. This issue is rife. 40% of renters say flexible rent is important. Yet, just 9% of tenants can access flexible payments. With such demand for more relaxed rent payments, one thing is clear: strict schedules will hold your company back. On the flip side, investing in flexible rent payments can help your business attract and retain more tenants. Mistake #2: Using manual tools and processes Late and non-payment is one of the top issues property managers face. Traditional payment methods like manual checks and paper-based transactions worsen the issue. Do you use industry favorites like standing orders and an online rental payment portal? Well, these aren’t off the hook, either. Such tools give little leeway on payment times and are often separated, making it more difficult to leverage data for decision-making. This situation can lead to even costlier issues like misallocation of funds and regulatory noncompliance. Yikes! 😨 Mistake #3: Using expensive solutions Have you ever sneaked a peak at how much bank transfers and your online rent payment portal cost? For many, it’s a jump scare moment. Charges for receiving wire transfers can hit $50, and some rent payment portals levy hefty fees on tenants and landlords. In the end, these solutions cream huge slices of cash off your company’s bottom line. Worse, these solutions don’t translate into better processes for the company or tenants. It’s essentially pouring money down the drain. 📉 Mistake #4: Settling for fragmented and clunky systems Building a robust and diversified payment stack is essential, but the wrong setup is a recipe for disaster. Issues arise from disconnected tools and processes, especially for tasks like rent collection, expense management, bookkeeping, and tenant communication. For example, many property managers use Excel, physical receipts, and email to track rent payments. The problem is, that this setup can cause mistakes, backlogs, and customer complaints due to the manual processing aspect and authorization bottlenecks. Late payments and delinquencies can also go unnoticed due to siloed data. On the flip side, companies that use the right technology in property management see a whopping 800% ROI. They also skyrocket data visibility and improve decision-making.🔥 Mistake #5: Resistance to high-tech solutions 🗒️ Whether you’ve got snail-mail fans or avid cash counters on your team, being digitally averse sets your business up for failure. Before you know it, you’re missing opportunities, losing money, and falling behind competitors. On the other hand, digital transformation will give your rental property management company a competitive edge. We’re talking increased growth, tenant satisfaction, and efficiency to name a few perks. For example, from 2018 to 2022, digital leaders have built their active customer base at a rate of 0.5% and revenues by 0.8%. That’s compared to digital laggards who saw no growth in their active customer base and a 1.4% drop in revenues. Mistake #6: A lack of transparency, security, and compliance Unclear payment processes, hidden charges, and questionably high fees are just a few mistakes that muddy the waters in your rent payment process and create a poor tenant experience. Lax security measures, like keeping credit card details in hard copy, using shady payment tools, or switching between umpteen bank accounts, can also expose your renters to data breaches and fraud. In such cases, tenants can lose trust in your organization and cut ties, leading to reputational damage and financial losses. 65% of businesses that suffered payment fraud or cyber-attacks couldn’t recoup the funds from the successful fraud attempt. 💸 Mistake #7: Using too many payment tools While diversifying how tenants can pay rent is key to maximizing on-time payments, you must be strategic. Throwing together too many tools can overwhelm renters and create more busy work for your team. Just think how much time everyone will need to learn each solution and manage payments through them. Instead, offering a comprehensive solution or two is best to make everyone’s lives easier. Each rent payment solution you use should be digital, with flexible payment terms. It should also leverage automation, be secure, and complement other solutions in your payment stack. For example, Sage Ventures saved ~5 hours of admin work per Assistant manager per week by upgrading their rent collection process with Flex. 👏 Quick solutions to your payment-related headaches 💪 Have you made some of the payment mistakes we covered? Don’t sweat it. Let’s run through some quick tips to course-correct your rent payments. Streamline and speed up processes by going 100% digital with integrative solutions Encourage flexible, online rent payments
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
