How Financial Flexibility Improves the Resident Experience & Business Outcomes
When it comes to financial flexibility, it’s pretty much guaranteed your residents are not only incredibly familiar with the concept but also taking advantage of it across their daily lives, with a wide range of diverse payment solutions. This includes using alternative banking options, mobile and online payment methods, and installment payments like “buy now, pay later.”
Because financial flexibility is the new norm for consumers, it’s only a matter of time before it becomes standard for property management companies, too. While it may seem like a relatively new concept for the rental housing industry, financial flexibility solutions offer myriad benefits for both residents and property management companies. This is especially true when it comes to rent payments and security deposits.
To dive deeper into why property management companies should consider offering residents more financial flexibility through flexible rent payments and security deposit alternatives, we spoke to Adam Feinstein, Head of Product for AppFolio Payments, and Sean Saxena, Sr. Director for FolioGuard™ by AppFolio Insurance Service.
Use the player below to hear what they had to say about financial flexibility on The Top Floor podcast, or keep reading for need-to-know highlights from their conversations.
While single, in-full, and fixed monthly rent payments are still the standard today, by making paying rent as flexible as possible for residents, property management companies canbe more in touch and in alignment with how people actually earn their income today. As Adam Feinstein explains:
In addition to mirroring the diverse ways residents get paid and want to pay their rent, offering flexible rent payments comes with other benefits, too. For example, by simply making it easier to pay rent in general, property management companies can help mitigate late payments and non-payments, spend less time following up with residents, better manage cash flow and NOI, and increase the speed in which payments are made to owners, vendors, and financial institutions.
In addition, Adamnotes that offering flexible rent payments doesn’t automatically mean property management companies will need to take on additional operating burdens or disrupt existing workflows, especially when the right technology solution is in place:
What are security deposit alternatives?
Although it’s an essential and standard component of the rental agreement process, the traditional security deposit can be a burden for both renters and property management companies. That’s because a typical security deposit is required up front and all at once, which can create additional barriers that slow down the entire move-in process. As Sean explains:
Security deposit alternatives can help make the entire unit turn process easier and quicker for everyone. In addition, they still help provide the same levels of protection property management companies would normally get with a cash deposit, since they’re an alternative, not a replacement. As Sean notes:
Making financial flexibility a win-win for everyone
By modernizing the property management industry’s approach to collecting rent payments and security deposits, two major pain points can be alleviated for residents and property management companies. In addition, using the right technology and solutions can help ensure the process is seamless, secure, and compliant, which also creates a win-win for everyone. After all, the easier it is to pay, the better the outcomes for everyone.
To learn more about how you can improve your resident experience, download our free guide below.