Future-proof your property: How to leverage tech to attract and retain modern residents
Ah, resident retention. It’s hard to go a day without thinking about it. And, like most property managers, you’re likely on the hunt for ways to boost it. It’s easy to see why; residents don’t always stick around. In August 2022, renters with an expiring lease had an average retention rate of 54.8% (down from 58% in August 2021). Some top-performing companies even hit 65%. While these figures are something to brag about (after all eCommerce’s retention rate sits at 31%), there’s still a lot of rental income up for grabs. Especially from Gen X, Millennial, and Gen Z renters. If you want to scale, there’s one key step to attracting and retaining modern residents. You’ve got to step up your technology. 🖥️ So, where do you start? Join us as we uncover what solutions the new school of renters expects, why, and what this means for your business. Next, we’ll get your creative juices flowing. We’ll zoom in on some companies that have harnessed the power of technology in property management to get into residents’ good graces and grow. Table of contents Tech-xpectations: What modern residents want Why do modern residents want digital experiences? 2 Proptech success stories to inspire your digital transformation The secret to attracting and keeping modern residents Tech-xpectations: What modern residents actually want Yes, we made up a word.😉 But the demand for tech-driven experiences in the house-hunting phase is very real. Let’s cover some of the growing expectations from renters and popular technology in property management: Flexible, digital payments Most modern residents have never waited in line at the Post Office to pay rent or used checks and postal orders to clear bills. We now live in a fast-paced, tech-driven world. Digital and flexible payment options are the norm. We’re talking Buy Now Pay Later (BNPL), one-click purchases, and contactless payments. So much so, Global BNPL transactions are expected to increase by nearly $450 billion between 2021 and 2026. Expectations for online and flexible payments have now reached the renter’s market. So, mimicking the payment options residents encounter daily as consumers is essential to keep them around. This trend also means fuss-free payment experiences are critical. No more figuring out bank transfer details or having to speak with a clerk to pay over the phone each month. It’s what makes solutions like Flex so appealing; it’s like BNPL for rent payments, but without carrying over revolving debt. Using the Flex app, users get credit to front their rent and can split rent into two affordable payments. Flex guarantees full rent to property managers on the 1st of each month, then collects payment from renters via the app.📱 Property management tools Modern residents are time-strapped. So, whether you’ve got one resident or a thousand, empowering them is vital for their financial health, enjoyment, and safety. So, make it easy for residents to run errands and complete admin tasks associated with their lease. For example, jobs like estimating bills, booking maintenance, and reporting a disturbance. You can also create a forum to help residents stay connected and chat with one another. As your portfolio grows, you can transform it into a community hub. Execute these changes through an all-in-one property management app. Just make sure it’s got DIY tools and property management features for residents Modern support channels Ask the typical modern-day resident how it feels to leave the house without their phone or when their favorite social media app is down. They’ll likely tell you it’s odd and like a piece of them is missing. It’s unsurprising; 40% of Gen Z spend 4 hours or more on social media daily, and more than half of their waking hours glued to a screen. Millennials spend 2 hours and 38 minutes on average on social media. Most of these actions take place on mobile devices. So, where do modern residents turn to when they need a hand? You guessed it: social media and search engines. 🤳 Since it’s natural and efficient for modern residents to conduct affairs online, offering tech-savvy solutions to manage their place digitally is a must. This adjustment will do wonders for your retention rates. Here are some areas to explore: In-home technology: Forgot to turn off the light. Not 100% sure if the hob is off. Want to return to a snuggly home in the winter and a cool spot in the summer. Expecting a visitor but need to pop out.🤔These are all common challenges residents face. Addressing these issues with smart technology that allows residents to manage their homes remotely is the way to go. Look for solutions to control things like water, heating, lighting, electricity, security, and building access. Think keyless entry doors, video doorbells, storage lockers, and tech-enabled units. Why do modern residents want digital experiences? Curious why modern residents are so obsessed with digital tools and why operators should be catering to this? It’s simple. New school residents have too many responsibilities, too little time, and, in some cases, funds. Get this: Digital solutions offer modern residents space to breathe. They also take the fuss out of managing mundane tasks like paying rent, making life easier. For instance, solutions like Flex help residents get ahead financially by allowing them to sync rent payments with their finances. So, if you’re looking for a way to increase resident retention, invest in your tech stack. Flex makes managing rent easier for residents across 5.5M US units. Learn how your business can be next. 2 Proptech success stories to inspire your digital transformation When it comes to winning the hearts and pockets of modern residents, the technology you use determines your success level. But don’t just take our word for it. Check out these encouraging results two property management companies got from digital transformation: Sage Ventures Solution adopted: Rent payment app from Flex Sage’s residents increasingly requested flexible payments, and rogue payments had also risen. In response, Sage trialed Flex’s rent payments app. This solution allows residents to split payments into two manageable
Improving resident financial health with flexible payments: Your next big move
Your residents are up against some tough financial challenges. The cost of living crisis makes it $119.27 more expensive to buy goods a family could get with $100 pre-pandemic. Gas prices are also rising, and, in 2023, the cost of rent spiked by 30% or more in some US cities. These issues aren’t only stressful but also affect your residents’ money. Soon rent payments can start to falter, impacting your rental income and bottom line. Not good.😧 The great news is there’s a solution to keep your business on track that few are talking about. Upgrading resident financial health using flexible payment options. This article will explore why aiding residents in improving their financial well-being is a smart move. We’ll also share how some forward-thinking businesses are helping residents get ahead with flexible payments. Table of contents Why improving residents’ financial health is so critical How flexible payment options make everyone’s lives better 3 organizations helping residents optimize their financial health Create a thriving business by focusing on resident financial health Noticed a decline in on-time payments? Get paid faster with Flex. Why improving residents’ financial health is so critical With so many goals you could be tackling, you may wonder whether it’s worth prioritizing resident financial health. The answer is “absolutely”! In case you’re still on the fence, let’s dive into some reasons why the move is essential: How flexible payment options make everyone’s lives better Offering residents flexible payments is a surefire way to level up their finances. But residents aren’t the only ones who benefit from flexible payment options; your business will, too. Let’s cover some perks: Boost resident numbers, tenancy durations, and resident quality📈 Want to know a key business metric you’ll improve by offering flexible payments? Those almighty retention rates. Providing flexible payments makes contract negotiations easier since residents can stagger rent payments. This feature is a huge deal since rent is many people’s biggest expense. It’s also a revenue driver, encouraging potential renters to sign up and existing residents to extend their leases. A knock-on effect of facilitating more relaxed payment options is upgrading resident quality. Since you’ll spend less time chasing down rent, you’ll have more time to optimize the business. For example, say you reinvest the time into improving resident screening processes. This adjustment will lead to fewer issues and complaints. So, if you’re looking at retention strategies, flexible payment options should be on the list. Steadier cash flow and increased net operating income (NOI) Following the last point, happy residents stay longer, creating a more predictable cash flow for your business. It also reduces the financial and time investment your team has to put in to fill vacant apartments. And here’s the icing on the cake. Digital payment solutions have shorter processing times than traditional options like checks and bank transfers. So you can access the cash sooner.💰 Get faster rent payments with fuss-free processes Worried that slow payments are holding you back? 28% of businesses feel the same, identifying sluggish payments as their top challenge. In property management, the issue lies in the payment-related admin renters have to endure. From triple-checking banking information to keying in card details, some payment options are so slow and painful that they’re a chore.🤦♀️ To make matters worse, renters must do the whole thing again the next month, and mistakes are common. These issues have financial consequences. 79% of renters say they’ve received incorrect, delayed, or lost payments from their property management company, which led them to not rent from them again. Making it easier for residents to pay rent with fast and flexible payment options removes these friction points. As a result, operators get rental income sooner and will have satisfied residents. Slash time and money spent on admin to improve operational efficiency Notifying residents of upcoming changes. Sending rent payment reminders. Solving collection issues. Updating the resident database. These tasks are all in a day’s work as a property manager. The problem is these to-dos are a huge time suck, and the associated bills rack up fast. For instance, the typical office worker spends 69 days per year cranking out administrative and repetitive tasks and, labor costs account for 50-60% of a business’ spending. So, when you consider the average margin for property management business sits between 10%-15%; one thing is clear. Spending too much time on admin will have negative financial ramifications. 💸 Residents also feel the impact of burdensome admin through slower response times and processes. Worse, lengthy wait times can affect their financial health when problems involve money. For instance, billing residents twice for rent during Rent Week when other bills are due because of a manual payment process. Adopting digital, flexible payment options prevents inefficiency-fueled defaults. It also eliminates many manual processes, like collecting rent and tracking missed payments. So, residents are more likely to pay on time. This change also unlocks more time to scale the business and serve residents. Upgraded customer experience, satisfaction, and loyalty Did you know that 78% of residents say having digital payments would improve their view of their property management company? 72% of customers want immediate service too. In short, providing digital and flexible payment options enhances your customer experience. This is especially true when the payment tools are like those residents use daily. As previously mentioned, flexible payments also make residents more likely to pay on time. But that’s not all; renters paying on time through modern tools can build their credit, further up-leveling their finances. For example, Flex offers an intuitive, self-serve mobile app for rent payments. Flex extends credit to renters to cover rent and guarantees the full rent payment to landlords on the first of every month. Residents who use the app can then split rent into two manageable parts and pay on the go. As a result, residents get a payment experience that’s as quick and easy as ordering groceries online. Residents also get payment flexibility, allowing them to better align rent costs to their finances
